Due to many recent controversies, there has been a lot of criticism surrounding digital currency — even from its key players. In an interview, a founding exec in the space likened investing in crypto to gambling.
“It feels too little too late, but putting your money in cryptocurrencies is gambling. I’m not saying what we have right now is the future of finance and [you should] move your life savings over. A lot of people are advocating that and I think that is extremely dangerous behavior.”
Davis’ skepticism was not expected from someone so closely tied to the industry. He co-founded Metamask with David Finlay six years ago with incredible success. The crypto wallet platform has 30 million active users monthly.
However, Finlay also doubled down on the risky nature of investing in crypto in the same Vice interview.
“We can’t stop people from making Ponzis on blockchains. It’s by definition impossible for us to wrap the whole thing into one unified bow and enforce it in a direction.”
In that statement is the key flaw with this type of investment.
The naked truth about crypto — is investing in it really like gambling?
When digital currencies were introduced, words like “blockchains” and “non-fungible tokens” gave people a sense that they couldn’t lose money. Nevertheless, crimes and lawsuits involving this new financial space have shown otherwise.
The fact of the matter is they are still not hard assets. That means investing in things like crypto, stocks, etc. will always put you in an unsteady position.
Digital assets are reliant on markets and people for their value, both of which are subject to ups and downs.
On the other hand, for me, real assets have been a consistent source of stable, passive income for decades now.
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At the end of the day, even some of the founding fathers who made investing in crypto possible know it’s gambling. The lesson is you can control a blockchain, but you can’t control people.
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