There have always been plenty of reasons for prudent investors to steer clear of the crypto markets. Most obviously, there are the rampant, ongoing, and widely publicized scams. These contribute to bouts of wild volatility that have led the entire market to plummet more than 80% on numerous occasions. There is also crypto’s precarious legal status: The latest big rally, which saw Bitcoin, the biggest digital currency, is one of the very best-performing assets of the past decade, easily eclipsing gold and the S&P. Its price has climbed from $325 in January 2015 to its peak early this year—a roughly 300-fold increase. (One way to silence someone who’s Ethereum, and then put the rest in four or five other blue chips like Solana, Uniswap, Aave, or Compound.”
To understand how a crypto asset might count as a blue chip, it’s helpful to understand that every blockchain—like every company—comes with a narrative that explains why it is valuable and will likely remain so.
