Let’s imagine a group of people who, for political reasons, refuse to drink any liquid that is not pink. Let’s call them pinkers.
One day, one of them publishes a paper that describes a very clever way to turn tap water pink, called Pinkchain. Of course, the pinkers are delighted.
Following that, someone creates a water filter that uses Pinkchain technology to tint tap water pink and commercializes the product as “Pinkcoins”. The pinkers go wild and start buying stock of this company, and soon its value starts to grow. That starts to attract the attention of people who don’t care about pink liquids but like to earn easy money and how the company valuation is growing non-stop.
Soon the valuation of the company is going wild, the media starts to focus on the new craze, and plenty of pinkers (and regular persons who jumped in the Pinkcoin wagon) are now millionaires thanks to their Pinkcoin stock.
At this point, the pinkers start to talk about Pinkcoin going mainstream. They start to rant about how in the near future everyone will have a pink water faucet in their homes. Everything is going so well, there’s so much interest in the technology! Other companies start to commercialize different products that use the same technology: Etherpool turns your swimming pool pink. Litebowl sells fish bowls with perfectly safe-for-fish pink water. The method is going to revolutionize everything! You could use pink water for every use of regular water!
So the pinkers tell everyone who listens to them that they should buy as much stock in Pinkchain-based companies as they can. Pinkchain is the future, so their valuation is not going to fall, ever. To the moon!.
Of course, the company behind Pinkcoin can’t keep with the new demand, and the quality of their products start to fall: The late filters need several hours to turn a single water bottle pink. But that doesn’t affect the valuation of the company: At the end of the day most of the people who are buying their stock doesn’t care about the quality of their products, they are just buying because it’s doubling its value each couple of months.
Even when the market has some hiccups, the pinkers keep screaming “HOLD!” and trying to convince people that the market is back to go up soon enough. Because you know, Pinkchain is the future. Because it’s the same kind of change of paradigm that Internet was for the 90s.
When someone points that, well, you know, maybe all this pink stuff may be a little bit of a bubble they dismiss those claims immediatly: That person doesn’t understand the underlying technology! It’s groundbreaking! the possibilities are endless! You could turn ALL THE WATER IN THE WORLD pink. Of course, everything Pinkchain related is going to continue to thrive, because it’s the future… And when someone asks what’s the point of all this, which problem Pinkchain is trying to solve, they answer that, d’oh, it turns water pink, obviously. So there’s no doubt it’s going to be the future.
But … what happens if most of the people don’t really care about
decentralization and government-control-free currencies drinking pink water and there’s not really any application of Pinkchain for them?