Cryptocurrencies offer diversification benefits due to low correlation with traditional assets. However, their high volatility, regulatory uncertainty, and lack of intrinsic value pose risks. While they may serve as speculative or alternative assets, long-term investors should approach them with caution and consider risk-adjusted returns.
Because of their low connection with conventional assets, cryptocurrencies provide benefits for diversification. They are risky, nevertheless, because of their tremendous volatility, unclear regulations, and lack of inherent worth. Long-term investors should approach them cautiously and take risk-adjusted returns into account, even if they could be used as alternative or speculative investments.
Genius Act: this new US cryptocurrency law could pave the way for the next global financial crisis
"The legislation would allow corporations to issue their own ‘stablecoins’, which are essentially digital casino chips...
It is therefore not difficult to imagine a situation where multiple companies are able to irresponsibly issue too many stablecoins. If this happens, the consequences could be dire, not just for the US, but for the entire global economy."
https://theconversation.com/genius-act-this-new-us-cryptocurrency-law-could-pave-the-way-for-the-next-global-financial-crisis-260724?
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