Re:Bitcoin Is Acting Like Just Another Tech Stock
by majormajor on Wednesday May 11, 2022 @11:00PM
(#31348799)
I would bet money that this has happened a TON over the last decade, just as you say. Especially post-Uber where "hypergrowth" to get market dominance was all the rage even in extremely cost-heavy, lower-margin industries where scaling was always gonna be a big challenge.
If there's good news, though, it's that this appears to be slowing down. Lot of folks getting disillusioned with WeWork, Uber, etc now that those exits happened and went nowhere. I'm assuming investors are realizing they won't be able to play that trick too many more times.
This makes sense to me, but I wonder how many VCs will pump money into a business, having a pretty good hunch that the business model will never make that much sense at a meaningful scale, but the numbers will probably look good enough for a return of investment until the pyramid collapses after the series C.
These companies are restructured for increase of perceived value, not multi-decade sustainability. Bitcoin to me is just the purest form of this culture.