Supporters insist Bitcoin is a hedge against “roaring” inflation and say this is “just the first leg in a moonshot.” Skeptics, by contrast, see a Bitcoin bubble as the most extreme example of the euphoria driving up markets across the economy.
Over the past 10 years, “crude-oil prices have risen and fallen sharply but ended essentially where they started.” Meanwhile, by betting on short-term price changes, the fund has lost 80 percent of its value.
If Tether were to collapse or face a major regulatory crackdown, “market liquidity would likely dry up, and a lot of people could lose a lot of money” — including some people who didn’t think their investments were linked to Bitcoin at all.
“He’s not alone.” One thing is sure: Speculators, large and small, are “clambering onto the crypto ladder for a shot at keeping up with or beating their peers.” As more people sign on to the “Bitcoin gospel,” the FOMO frenzy only grows — and the risks grow with it.