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Saifedean Ammous, author / academic at Self-employed, describes a pattern commonly seen in certain cryptocurrencies. According to Ammous, these tokens often experience initial excitement and price surges, followed by increasing supply and insider profits that drive price back to its launch level.
Ammous believes that the next typical step is an eventual collapse as new buyers diminish and existing participants lose money.
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Ammous has previously compared long-term bitcoin returns to those of Treasuries, noting that bitcoin would have outperformed long-term U.S. Treasury bonds over the past 15 years. He has also observed that the 10-year Treasury yield is approaching a 19-year high as U.S. debt to GDP has doubled since 2007. These views provide further context to Ammous's skepticism about the sustainability of certain digital assets.