Why haven’t floating rate cryptocurrencies gone the way of the Beta recorder? Fifteen years of experience have laid bare their fundamental flaws.
They have no intrinsic value, offer little to no transparency, and anyone — priest or felon — can issue, operate or manage them. Sometimes we don’t even know who creates crypto coins. Their price is often driven by rumors on social media, and once users lose confidence, with no government oversight, the only way to realize any value is to sell before everyone else does. There is no house, car, securities, company or tangible value to liquidate at the bottom of a cryptocurrency run.
