A lot of people make the argument that the value proposition for crypto is backed by the low barrier of entry and the ability to perform "private" transactions.

A lot of people make the argument that the value proposition for crypto is backed by the low barrier of entry and the ability to perform "private" transactions. On the contrary, I'd argue the true value of cryptocurrencies lies in the extremely transparent and publicly auditable nature of the blockchain. Even a lot of the recent scams and rugpulls fall apart with some basic blockchain analysis. In the current environment a lack of regulation leads to lots of scams and sketchy business, but these aren't fundamental problems with the technology. The fundamental problem is that most of these cryptoassets are backed by sunk costs, dreams, and hype. Ethereum makes a good stab at solving this problem by supplying real-world utility to the underlying coin, but unfortunately most of this demand is still driven by scams and speculation. I don't believe any cryptocurrency will be able to achieve real underlying value until one or more successful countries require it to pay taxes. (The dream of increasingly privatizing the world until the entire financial system is 100% backed by the word of random business owners is downright frightening to me so I hope the huddled masses keep some independent voice in the matter.) There seems little reason why this eventual country should legitimize an existing cryptoasset, though, since spinning up their own will be just as easy. As sovereign-backed crypto-currencies spread I expect KYC regulations to catch up fast so while it will still be possible to spin up your own coins and run your funds through shady mixers, eventually it will become harder and harder to operate without a clean wallet. In this future world of government-managed crypto I expect the existing unbacked cryptoassets to eventually fall to zero or thereabouts. This is why I am not financially invested in bitcoin et al, but still very bullish on the technology.