Question

We ran across this tweetstorm from Vitalik Buterin regarding the social value of crypto assets. The point of the tweets is to ask the question of whether Bitcoin and all of the other crypto assets combined have generated $500 billion in total welfare to the world?. What would have to be true in order for $500 billion in welfare to be created? Knowing what you know about crypto-assets, explain why this may be plausible; knowing what you know about crypto assets, explain why this may not be a plausible estimate.

Answer 1

I belive that total welfare to the world has not been generated orth $500 billion. This is because bitcoin is on a bull run at present and it has created a bubble. It may burst anytime. It is the artificial demand that is created for bitcoin due to its awareness.

Welfare cannot be just measured by money. Even when bitcoin generats $500 billion, it does not mean that welfare is also generated. Welfare means alot of thing where inequality, happiness, basic amenities all are considered.

Bitcoin has not done that. It a mere bubble that has increased its price hence generating $500 billion. But as it crashes the whole amount generated will plung. Hence the value will go down at a sudden.