There is an enormous opportunity cost to building crypto
Crypto companies and projects are draining resources and capital that could be better invested in productive assets. Since these assets are non-economic they do not produce any net wealth or value for society as a whole, much like buying and holding physical commodities but without the commodities having any use case or purpose.
The crypto project on a whole is therefore a drain on both capital markets and the technology industry since it is consuming time, resources, and talent that could be put towards more productive enterprises. It is a form a civilizational brain-drain towards projects which result in no net good and massive negative exteranlities on the world.
References
- Cembalest, Michael. 2022. āThe Maltese Falcoin: On Cryptocurrencies and Blockchainsā. https://privatebank.jpmorgan.com/content/dam/jpm-wm-aem/global/pb/en/insights/eye-on-the-market/the-maltese-falcoin.pdf.
- Amato, Massimo, and Luca Fantacci. 2020. A Fistful of Bitcoins: The Risks and Opportunities of Virtual Currencies. Bocconi University Press. https://www.egeaeditore.it/ita/prodotti/economia/a-fistful-of-bitcoins.aspx.
- Coeckelbergh, Mark. 2015. Money Machines: Electronic Financial Technologies, Distancing and Responsibility in Global Finance. Routledge. https://doi.org/10.1177/0094306116671949n.