99% of cryptocurrencies are worthless.
That sounds extreme.
But inequality shows up everywhere in nature and in society.
Think about it.
- Two elements (hydrogen and helium) make up almost the entire universe.
- A tiny group of musicians get almost all the plays on Spotify.
- Only a handful of mammal species make up almost all the mammals on Earth.
- And the richest 1% control a huge amount of the world’s wealth.
In almost every system, a small number of winners rise to the top, and the rest fall behind.
When there are fewer rules or limits, this effect gets even stronger.
There’s a line in the Bible that explains it in a harsh way:
“To those who have, more will be given. To those who have not, even what they have will be taken away.”
I’ve been thinking about this as we've been building our new, proprietary crypto investment system in the background.
Crypto is the wild west.
Anyone can create a coin. There’s almost no barrier.
That’s good because it means fast innovation and constant experimentation.
But there’s a downside.
If anyone can create a coin... then everyone does.
So most of what gets created is junk.
For savvy traders, that chaos can sometimes create big opportunities.
But for normal investors, it means digging through a mountain of trash looking for one real gem.
Now compare that to the stock market.
In stocks, at least the companies are real.
They have to report earnings.
They have to follow strict rules.
They employ people, build products, pay taxes, and are held accountable.
A company must pass serious requirements before it can even be listed.
Those rules act as a filter, a constraint, which keeps a lot of garbage out.
Crypto has no such filter.
No profits required.
No audits.
No real oversight.
Just an open door for everyone.
That’s why the pile is so messy.
Crypto is the next generation of finance and technology. But before the world can fully trust it, we have a lot of work to do.
We need better tools, better systems, and better ways to separate the mountains of turds from the few real innovations that actually matter.
And that’s exactly what we’re building.
More on this in the coming weeks.
BTW - I'll be going live on PreMarket Prep this morning at 8:35am ET. Click here to tune in!
From where the sun rises first,
Louis Sykes
Senior Crypto Analyst, All Star Charts
