I preface this post by admitting I know next to nothing about crypto currency and blockchains. I never even thought about investing in bitcoin because I simply can't imagine what it might be good for other than illegal transactions. When somebody can show me the utility of using cryptocurrency to buy a cup of coffee at my local Stewarts Shops, I'll think about it.
Which brings me to the latest but surely not the last crypto scandal in which a "whiz kid" promised outsize returns investing in alternate currency. Alas, it looks like he simply stole his customers' investments and spent much of it living the lifestyle of the rich and famous. Billions were lost by credulous investors.
As Paul Krugman points out in today's NYT, most, if not all the companies who attempted to use blockchains in their businesses have given up since the technology is not superior to what they had been using. Threats of government regulation will probably be the final nail in the coffin of the crypto bubble. So much for the get rich quick scheme; until the next one. It's human nature at its least attractive moment.
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