Crypto has no "full faith and credit" entity to back promises of value recognition and actualization. The US, for example, can labor to deliver on the dollar.

Crypto has no "full faith and credit" entity to back promises of value recognition and actualization. The US, for example, can labor to deliver on the dollar. In the end, labor is the source of all wealth created. We have a lot of people, resource plentiful, developed homeland, and understanding of many means and methods, all able to be brought to bear on the task of backing the US Dollar. And that happens every day, making the dollar robust and low risk. (The current conflicts and the reality of the petrodollar do complicate this some, but not enough to impact the discussion) With crypto, what is there? When it is used as a value transfer medium, meaning it's intrinsic value can be low, the value so traded lies outside crypto. It is also being used like precious metals, meaning it's intrinsic value should be high and it as a resource should be scarce. New crypto is created all the time. Unlike other resources, crypto does little of value on its own. Which is it? As we have seen, the risks are quite high. Who backs the value? What happens when someone fat fingers a contract and commits large sums to no one, in effect removing it from the market. How does an owner insure against that kind of thing? (Just one risk event out of many, and I meant no one in particular.) What basis do people have for belief and trust? Whose full faith and credit is there in service to make things happen?