Opinion: Crypto is melting down. Here's who's hurt

Instead, it's dependent on what is known as the"greater fool" theory: Crypto assets are worth whatever you can persuade another fool to pay you for them. When the supply of fools washes out — or confidence wanes that they're out there at all — the market is vulnerable to a crash.

An investor survey published in December by Grayscale, a pro-crypto research firm, found that 55% of surveyed bitcoin investors launched their investments during the prior year. That apparent receptiveness to the investment category is presumably what spurred Fidelity's initiative, through which it is offering companies with 401 plans to allow workers to place some of their contributions in crypto.The agency says it has"serious concerns about plans' decisions to expose participants to direct investments in cryptocurrencies or related products, such as NFTs, coins, and crypto assets....

Asked on the air if she thought crypto belonged in workers' 401 and other retirement plans, Lummis replied,"It's a wonderful idea.... You want assets that are a store of value, and I think that's where bitcoin really shines.... It's some of the hardest money that's ever been created in the world." In an open letter earlier this month, a group of 26 experts urged congressional leaders to take steps to protect the public from these"risky, flawed, and unproven digital instruments." Their letter ultimately attracted signatures from 1,700 scientists and technologists, according to Stephen Diehl, a British engineer who is one of the organisers.

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