For example, if the risks are properly managed, cryptoassets could potentially serve as a new funding tool, allowing small businesses to find the capital they need. Some also argue that cryptoassets could deliver financial services to segments of the population that are underserved by existing financial institutions.
History shows us that many transitions are accompanied by a boom bust cycle, whether it’s the dot-com bubble in the early 2000s, or the railway mania of the late 1900s. Whenever there’s increasing demand, a hype, or new market opportunities and instruments, there’s the risk of creating a new bubble.