web3/claims/is-opportunity-cost.md

Is there an 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.

References

1. 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.
2. 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.
3. Coeckelbergh, Mark. 2015. Money Machines: Electronic Financial Technologies, Distancing and Responsibility in Global Finance. Routledge. https://doi.org/10.1177/0094306116671949n.