In market economies, asset price fluctuations and bubbles could be interpreted as unavoidable and even beneficial as they become the means of rewarding good choices and punishing bad decisions. One macroeconomic risk of asset price collapses is the possibility of a growth slowdown or a recession. The empirical evidence of the effects of price falls in stock and currency markets is somewhat mixed.
Cryptoassets are so called because they use cryptography to validate transactions and prevent fraud. Records are kept through blockchain technology—a digital ledger stored on thousands of computers worldwide that keeps track of every coin or token issued. Anybody trying to fraudulently use their crypto cash multiple times will likely be caught by the validation process on all these computers.