If the amount of capital willing to take high risks from cryptocurrencies only increases a bit over time but more and more high-profile cryptos are launched successfully, wouldn't the capital in existing cryptos decrease, which effectively dampen down their valuations?
Obviously, this depends on the rate of incoming new capital vs successful crypo launches, but as long as the appetite for such high-volatility assets is limited, the ceiling must be hit some day. Wouldn't that then start the unwinding of crypto prices as less devouted believers increasingly sell as losses mount?
Obviously, this depends on the rate of incoming new capital vs successful crypo launches, but as long as the appetite for such high-volatility assets is limited, the ceiling must be hit some day. Wouldn't that then start the unwinding of crypto prices as less devouted believers increasingly sell as losses mount?