I think crypto is unpopular in Silicon Valley precisely because of how much power the investor class has in that setting. Those angel investors understand crypto just enough to know they don't want to get disintermediated.
It might also be so unpopular because we are smart enough and technically inclined enough to make our own conclusions on the technology without relying on ideology. And the more we look into it, the more dubious the siren song of crypto becomes.
Crypto VCs close deals for hundreds of thousands or millions within 10 minutes without any lawyers or legal contracts. It’s just a different world and the traditional VC insider game is going to end. Will be quite amusing watching it collapse!
I would argue that VC investing is actually a renaissance in providing bountiful cheap funding for startups to get off the ground. It is only going to expand. And if you know anything about the process, there are ample lawyers and legal contracts to set out terms and equity. Investing is less about insiders and more about innovation than it has ever been. If you are waiting for its collapse, you are going to be sitting in your gaming chair for quite a long time.