re: Why is crypto crashing?

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i think people get too hung up on the alternate currency part of crypto. its only been around for 13 years, and hasnt even been on the radar until like 5 years ago. its waaaay too soon to assume it would behave that way out of its infancy.

fiat came around about a millenia ago and didnt really see popularization until 700-800 years later and US didnt adopt until about 50 years ago.

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The problem with crypto is that you have to build a currency up to where people have trust in it. With the BitCoin model you have scarcity in that there is only so much BitCoin that will ever exist, but:

A) There are people out there with huge amounts of it in supposedly inactive wallets that could crash it at any time
B) Scarcity alone doesn't create faith in a currency. The US Dollar was originally just an exchange mechanism for Gold. Then it was backed by gold dollar for dollar. Then it was backed partially by gold with some/most of it being essentially on credit. Now we are off the gold standard entirely. Point being there was a lot of evolution in the process of the USD becoming what it is, because people built up faith in it over time.

With the Ethereum model the scarcity isn't even there so as a currency I don't see it (but Ethereum has uses that Bitcoin doesn't have).

Right now all coins run off one of these two models in one sense or another.

The play isn't to invest in crypto and hoping it becomes a currency, the play is to invest in crypto that people are going to use for NFTs, smart contracts, stuff with meta verses, etc. Bitcoin is a unique example where you don't have those uses, but you can still make money on it if people keep adopting it and using it like they have been.