If interest rates remain high enough for long enough then that whole Ponzi house of cards will collapse. Crypto bubble only blew up because of almost zero interests rates and QE between 2009 and 2021. But if the Fed manages to quickly drops rates and re starts QE, up everything goes again..
Crypto is fine. There's been a lot of hypothecation and other unsound stuff going on with centrally concentrated assets. Cascading effects and badly run firms going under due to systemic risks in the sector does not surprise me at all, on the contrary it's something I do expect.
Okay, so you're arguing that... "The system is working." The recent massive failures are a feature, not a bug. Would you say the same thing about the crises that enveloped our banking system in 1930 and 2008? Or the S&L crisis of 1986 to 1995?
IMO it just needs some regulation/structure/oversight. In the absence of that, you have really smart kids that just dive in and do whatever they want. And now everyone has seen how that worked out.
Unfortunately, no, this is not a correct assumption. Crypto 'blew up' because it is a new asset class. It was not institutions who came in early, but the retailers. Interest rates had literally nothing to do with the retail investors. Commodities like gold/silver, etc. have been around for thousands of years. They are not going away any time soon. Rarely do we get a new commodity. Oil is still relatively new, and while there are still wokists who are trying to ban it and wishing it would go to zero (perhaps in more ways than one), good luck with that. Our economy DEPENDS on it. New commodities like Ethereum are not going to go away any time soon either. They were created BECAUSE of the mess that politicians and the rest of government have made with FIAT. And Dapps are essentially the second generation of cryptocurrency. Not to mention, we now have triple-entry-book accounting benefits thanks to blockchain. Your post comes across as a luddite who fully expected the steam-engine, trains, and auto-mobile revolutions to go to zero. Train companies are still blue-chips hundreds of years later...
crypto is supposed to solve for those crises by disintermediating the banksters, the politicians, corrupt regulators, and the fed (which we know is actually owned by the Rothschilds).