Scarcity in a World of Abundance
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Crypto isn’t a store of value.
It isn’t a debasement hedge.
And it has very little to do with gold... at least for now.
The market is pricing digital assets for what they actually are right now: new forms of technology and software.
Just look at the relationship.
For years, crypto benefited from broad, narrative-driven buying. Today, that tide has gone out. What we’re left with is a much more honest market; one that’s separating what’s scarce and useful from what’s abundant and replaceable.
And abundance is the problem.
On one side, we’re watching an explosion in AI capabilities. In just a few hours today, I built a fully automated crypto portfolio tracker across multiple wallets and started prototyping a Polymarket trading bot, without writing traditional code.
Access to software creation is being rapidly democratized, and SaaS businesses are directly in the line of fire.
Software is no longer scarce.
On the other side, crypto is going through its own reckoning. There are simply too many networks, too many blockchains, and too many tokens solving problems we don’t actually have. The market is repricing that reality in real time.
In an environment where scarcity is being rewarded (just look at precious metals and energy), assets of abundance are struggling.
Software. Networks. Narratives.
This is painful, but necessary.
The pundits are only now starting to catch up. Historically, that’s usually a signal that the selling pressure is closer to the end than the beginning. When fear peaks, when the headlines turn, when the magazine covers arrive, that’s where long-term opportunity tends to form.
That’s where I’ll be.
Not buying everything.
Not buying stories.
But focusing on the small fraction, the 1%, that actually matter.
From where the sun rises first,
Louis Sykes
Senior Crypto Analyst, All Star Charts
