Anyone who knows me knows how much I hate blockchain, NFTs, cryptocurrency, and all that Web3 crap. So reading this piece by Stephen Diehl was a breath of fresh air, especially because it broke it all down and explained why blockchain and crypto assets are crap.
The essence of the financial arguments against crypto assets are quite easily summarized. As I previously described, crypto assets have no claim to be currencies because their deflationary properties and volatility don’t fulfill the theoretical or even practical function of money. They aren’t commodities because they have no non-circular economic use case. There is a somewhat coherent proposition that crypto assets are effectively unregistered securities contracts, basically like stock in an empty company that doesn’t do anything except promote the sale of its own stock. Historically these investments would have been called “Blue Sky Contracts” in the era before the Uniform Securities Act of 1956 outlawed such things. And then there’s the claim that crypto assets are a piece of performance art about libertarian politics, but this is an unfalsifiable proposition
Memecoins, progcoins, and stablecoins all receive criticism. Highly recommended read.
Spend your money elsewhere.