The SBF trial is a reminder that crypto is a rotten business

What I dont understand about Crypto is that its supposed to be good for payments, and for keeping a store of value. Both of those business are pretty low margin uninteresting businesses. How can people make billions out of it.

Well, fraud, obviously. :)

Beyond that, you can still, in theory, make a lot of money being a supplier to a low margin business. By some estimates NVIDIA booked over $2b in extra revenue due to crypto.

As more and more people are convinced to put money in it, the price goes up. That's the only business model.

When new people stop pumping money into it, the business side mostly stops working.

> Both of those business are pretty low margin

Credit card companies and banks make lots of money. Dealing with money is a profitable business.

> How can people make billions out of it.

Through hype.

Bitcoin being deflationary was the main driver for adoption

"How can people make billions out of it."

Lying

https://web.archive.org/web/20231029224759if_/https://ustoda...

https://www.ft.com/content/588a5abd-e136-44ff-ba6c-be2068d0d...