Burned by Crypto? Don’t Learn the Wrong Lesson
It’s not that the market for digital currencies was rigged, it’s that no financial market can offer those kinds of staggering gains without huge risk.
I must admit I’ve been rooting for the crypto market to crash and burn. Not because I never invested in it and was resentful to see so many people get rich from it (though there were moments). But because I don't understand it, what value it serves or what problem it solves.
So I spent the last 12 years assuming — and hoping — that crypto would go away. And now it might. Or at least, it might become a smaller part of the financial market. But now I'm worried. After a decade of drawing in investors, minting new millionaires and billionaires, and inspiring passion for investing among a new tech-savvy generation, I fear the consequences of it crashing and burning. Investors are in danger of learning the wrong lessons about risk.
Allison Schrager is a senior fellow at the Manhattan Institute and a contributing editor of City Journal.
This piece originally appeared in Bloomberg Opinion