I’ve been critical of crypto for many years and, in particular, derivatives like NFTs. My evaluation was always simple through a product lens: what value does it create for what segment / what problem does it solve? Interestingly, when I’ve posed this to crypto advocates, I never get a clear answer (as a side note, I believe the blockchain tech belying crypto has interesting use-cases like chain-of-control for produce so this is mostly focused on crypto/NFTs). In addition, when knowing that the vast majority of crypto is held by a tiny minority of people, you start getting more nefarious thoughts about what is really going on.

This post by Lars Doucet on Noahpinion has some interesting points including the comparison between crypto and Amway.

Amway and crypto on the surface might not immediately seem similar. Amway was (allegedly) a convoluted system where you bought a bunch of products from them that you then sold to family and friends and eventually other customers, and then you recruited those same people to become part of your distribution network, forming your “downline.” Then you would (allegedly) encourage them to recruit more people of their own, forming their own downlines, which would nest inside of yours. From their perspective, you and everyone in the recruitment chain above you would form their “upline.”

https://noahpinion.substack.com/p/is-web3-culture-similar-to-amway

My dollars (euros, etc) are already digital. I rarely transact with them physically. Do the transaction facilitation middle-men and clearing agents extract too high a fee? Perhaps, but I know its been coming down dramatically with newfound digital competition (and some regulation particularly in Europe). Plus, those fees fund the many layers of private and public monitoring and regulation which is fundamental to a high functioning financial system that crypto cannot replace (at least under current proposals).

BTW, this video terrifies me: