Cryptocurrency is the new subprime mortgage
If 2008 is any guide, otherwise stable banks and investment funds will feel pressure to invest in cryptocurrencies even if they know it doesn't make sense, just as they did with subprime mortgages.
This was a problem in 2008 before the crash. People came up with increasingly exotic investment vehicles, mostly other investment vehicles packaged and repackaged, to satisfy investors' need to satisfy return requirements. Most sectors of the economy were on a line that led back to this, and they all tumbled when reality tugged.
Crypto isn't exotic, but neither were subprime mortgages. And crypto instability is more obvious than that of subprime mortgages, so some portion of people getting into it understand the risk. The problems will come when they're inevitably securitized. Someone is out there trying to figure out how to repackage crypto-coins. Investments that depend on crypto will get increasingly abstract until no one understands how exposed they are.
Then it'll crash, as it always does. Non-stablecoins go into deep dives all the time. It seems to be part of the fun for many people who put money into them. "HODL!" and all that.
