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Jeremy grantham crypto Prudent investment policies can reduce but not eliminate such risks. They introduce into the crypto space the kind of maturity mismatches commonly seen in money market mutual funds. Enhancing transparency and awareness of the risks associated with crypto-assets and their social cost are critical aspects of this approach. Authorities also need to address the significant social costs of crypto-assets, such as tax evasion, illicit activities and their environmental impact. The notion that stablecoin issuers might invest in crypto-assets could further concentrate holdings and contradict the low-risk requirements for stablecoin reserves.
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This makes them particularly sensitive to changes in risk appetite and market narratives. The vision of digital cash � of a decentralised payment infrastructure based on cryptography � went awry when blockchain networks became congested in , resulting in soaring transaction fees. In order to achieve sufficiently high rewards, the number of transactions per block needs to be limited. Top Share this page. Moreover, the handling of crypto-assets can be challenging.