High liquidity hides waste; low liquidity reveals it
In high liquidity, people abandon performance for speed and ease. When money tightens, optimization and discipline matter again across domains.
All these optimizations matter more in all domains when liquidity drops. In high liquidity, people abandoned performance for speed, simplicity, and ease of coding. That works until someone arrives with an optimized version and disrupts the business model.
Cheap capital is a temporary climate. Habits formed under it feel normal until the climate changes. Then the bill for abandoned craft arrives as cost, outage, or a competitor who never forgot the fundamentals.
From X
Derived from posts on X as devendrasm: