The belief that holding onto cryptocurrencies leads to long-term gains is challenged in this analysis, which argues that the crypto market primarily functions as a wealth extraction system. With a focus on empirical evidence, the article highlights the underperformance of altcoins compared to Bitcoin and explains why traditional investment strategies often fail in the crypto space.

Sam Altman, CEO of OpenAI, warns that the current AI investment frenzy mirrors historical technology bubbles, where initial excitement and genuine breakthroughs lead to unsustainable speculation and inevitable crashes. Historical parallels with the Railway Mania and the dot-com bubble illustrate how excessive optimism and leverage can result in financial disaster, despite the underlying technological advancements. The article emphasizes that while bubbles burst, they often leave behind valuable infrastructure that supports future growth.