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The Similarity Between Cryptoventures and Small Businesses

The job of markets isn’t to go up. 7 — Number of major cryptocurrencies losing value over five years
The Similarity Between Cryptoventures and Small Businesses
A physical representation of bitcoin, at the "Bitcoin Change" shop in the Israeli city of Tel Aviv on Feb. 6. Jack Guez/AFP/Getty Images
Max Gulker
Max Gulker
Senior Research Fellow
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About half of all small businesses fail after five years, but we don’t use that fact to declare small businesses to be all hype, or something not worth starting. Instead, our culture generally praises small entrepreneurs for their hard work and willingness to take on risk in an often-unforgiving market. We don’t know in advance which ideas are the best, so we let people bring those ideas to the market to find out.

Consider, then, a recent study by journalist Samuel Haig, published on bitcoin.com and titled “5 Years Ago You Should Have Bought Bitcoin, Not Altcoins,” with altcoins meaning alternatives to bitcoin.

Max Gulker
Senior Research Fellow
Max Gulker is a senior research fellow at the American Institute for Economic Research. Gulker holds a doctorate in economics from Stanford University and a bachelor’s in economics from the University of Michigan.
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