The Guardian view on crypto’s latest crash: it reveals who pays the price for a failing economy | Editorial
The crypto crash has come again. And it is as brutal as ever. In barely six weeks, more than $1.2tn has evaporated from cryptocurrencies’ market capitalisation. The sell-off has sent bitcoin back to levels last seen in April. The world’s largest cryptocurrency briefly fell below $90,000 this week, shedding almost a third of its value since its October peak.
The key to understanding crypto is that it has no “value” in any economic sense. It generates no income, commands no productive capacity and pays no dividends. Unlike state money, it is not backed by a tax base or a fiscal authority. What props up its price is not cashflow but expectation: the hope that someone else will validate today’s valuation tomorrow. When sentiment…
