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.
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