The problems with crypto assets fall into several categories.
- Crypto investments that use proof of work have an absurd environmental footprint.
- Crypto investments waste energy that is better spent on more productive enterprises.
- Crypto investments violate securities laws
- Crypto assets are largely used to circumvent laws around illicit financing and money laundering.
- The history of private money indicates these projects lead to vast conflicts of interests and potential enormous frauds.
- Crypto investments expose the public to undue risk.
- It is an enormous opportunity cost the directs capital towards unproductive enterprises and scams rather than into growing other businesses.
- The structure of it as an investments is negative-sum. Most investors are guaranteed tot lose money.
- It is most likely a bubble.