The cryptocurrency market is volatile, but that may not be crypto’s biggest downside. With many large investors getting out, the crypto market has shed nearly $2 trillion in value.
“I think a lot of these really big investors are saying ‘you know what, the market is too up and down, the world is too unstable right now, we’re just going to pull out of crypto for the time being,” said Madison College Professor Steve Noll.
“A lot of big investors are putting their investments into much more traditional and conservative investments.”
Noll also noted crypto’s environmental downside – reliance on energy gobbling computer servers. “Just the sheer amount of energy it takes to maintain this, it’s staggering. And crypto is one on the most environmentally unfriendly currency ideas ever.”
Crypto relies on blockchain technology, which requires enormous amounts of energy to run computer servers.
“I think the biggest threat to crypto is not the volatility of the markets. It’s the eventual realization that it may be unsustainable to run all these servers.”