Looking at the valuation of any cryptocurrency over a 6 month period misses the point. Sure, the market bounces around and the peaks and valleys are extreme. It's speculative and not a sound retirement plan.
But, bashing on crypto just to bash crypto is short-sighted. One, several cryptocurrencies provide real-world, tangible value. VeChain is a good example. I was first attracted to it because it provided a means for businesses to track parts. Ripple, if memory serves, provides faster transaction rates which is of interest to banking institutions. Meme-coins are easy to point to and laugh, but there are some currencies out there based on solid foundational principles. And, while we snicker at the sharp decline in the valuation of Bitcoin, let's not forget it's still valued at over 30 grand a pop.
Crypto does draw a lot of people looking to get rich. These people might invest in more traditional markets if they had any reason to have faith in those markets. There's a disgusting percentage of the over-50 demographic that isn't going to be able to retire. There's a disgusting percentage of the population that sees no way to own a home. There's a disgusting percentage of the population that has lost everything due to medical bills. The reason crypto draws an audience is because so many people see no other way to achieve financial security in their lifetimes.
Then you have to factor in anonymity. Some of the value there comes from illicit uses on the "dark" web. But some of it also comes from people being sick and tired of paying taxes on earnings when it's obvious that the rich and shameless aren't paying their fair share. Why the hell should I pay taxes on earnings when Exxon pays zip? Traditional markets are not an even playing field.
In terms of those illicit uses: something like half of the merchandise on the dark web is drugs. Some of that is purely recreational. But, why are people using crypto to pay for marijuana in this day and age? Thanks Reagan, that war on drugs went so well. Just say no! It isn't all weed, though. A lot of it is pain medication. The latest "Opiod Crisis" is just an extension of the war on drugs. People with chronic pain aren't being prescribed medications that adequately manage their pain. So, they get what they need where they can get it. It's not cut and dry. I have no idea what percentage of purchases are made for what we would call legitimate reasons. But, there's something that our culture is doing that makes crypto appealing.
As to NFTs, even OpenSea estimates that 95% of its listings are garbage. The appeal there, though, is ownership. So many of us spend so much time in the digital realm, it makes sense to want to own a piece of it. Tune back in twenty years to see how that goes. There is one venue where it makes a lot of sense, though: gaming. Gamers tend to have a lot of time on their hands and disposable income. A sizeable portion of the NFT market is devoted to creating gaming assets, digital creations that can be used in games. That's a market that isn't going away.
And (shameless plug), some NFTs are becoming a bit more innovative in their design and purpose: https://roll-of-the-dice-nft.com/
Crypto is risky, but it isn't as hare-brained as it would have been 10 years ago. Hell, I turned $100 into $1,200 over the course of 1 year and I am not the savviest of investors. I just don't know of any other way to achieve financial security in my lifetime.
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