I used to think like this but after seeing the amount of money invested into crypto companies which most average people could have quickly dismissed as irrelevant, I'm not sure VCs are a good judge of value.
I used to think like this but after seeing the amount of money invested into crypto companies which most average people could have quickly dismissed as irrelevant, I'm not sure VCs are a good judge of value.
That's not an entirely fair take. Once upon a time it was believed that cryptocurrencies would be able to supplant payment processors (i.e. VISA, Master Card) We even had a rollout of crypto ATMs to utilize the belief in that network. That is a money printing business, so it wasn't unreasonable for VC money to chase it.
Sure, those intimately familiar with the technology may have always known that it wouldn't work, but the average person absolutely did not. They only came to learn that it wouldn't work as the cryptocurrency ventures proved that it wouldn't work.
The pivot to being some kind of tool to store wealth, or a way to trade cartoon monkeys, or whatever as a last ditch effort to save the companies that failed to turn it into payment processing technology was more obviously irrelevant, but that came much, much later. The VCs were desperately seeking an exit by that point.