Buying bitcoin or any other crypto is a huge leap of faith and you don’t want to be the ‘greater fool’ – MarketWatch

Buying bitcoin or any other crypto is a huge leap of faith and you don’t want to be the ‘greater fool’ – MarketWatch

Investors in cryptocurrencies exhibit breathtaking leaps of faith that make stock buyers look like they never take risks.

This isn’t to say that leaps of faith aren’t required to trust that companies won’t cheat shareholders. Enron and Worldcom, for example, are strong reminders that trust in publicly traded corporations must be verified.

Nor should we forget the level of trust required to believe that the Federal Reserve won’t debase the U.S. dollar DXY, -0.12%. The dollar’s fundamental value has suffered over the past 15 years at the hands of the Fed’s multiple rounds of quantitative easing and efforts to keep interest rates low. In the process, the Fed’s balance sheet has ballooned from $800 billion in 2006 to more than $8 trillion.

Cryptocurrencies were supposed to be better than this. Bitcoin BTCUSD, +2.43%, ethereum ETHUSD, +0.69% and other cryptos were born out
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