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.
- Cembalest, Michael. 2022. ‘The Maltese Falcoin: On Cryptocurrencies and Blockchains’. 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.