Depends on which coins. Asset-backed coins like USDC and USDT (lol) do carry counterparty risk which can cause them to become valueless. Some would say the latter already is. And since of course the majority of crypto is priced in USDT not USD, that becoming valueless due to counterparts risk will likely nuke prices across the board. Still almost $70B of funny money floating around the ecosystem.
I just said risk; depends on your definition of counterparty risk I suppose, but it’s a much greater risk than those you discuss if you’re attempting to store value in cryptocurrencies.
Stated another way: if you can’t find a counterparty, does the risk you’re talking about matter?
No matter which asset you use to store value, the bet is that there will be demand for this asset in the future. That is pretty much the definition of value.
How to avoid counterparty risk is a topic for every asset. For self-custodial crypto, it is about how to handle private keys.
Asset picking which you bring up is a different topic.
But hey, we can go there if you like.
You make a bold claim: That in crypto, demand risk is higher than counterparty risk. Can you back that up somehow? Historically, nobody who held crypto for more than a few years faced lower demand. But many faced loss of their crypto due to counterparty risk.
The demand for crypto was zero 15 years ago. It has since proven spectacularly unsuitable for storing value, transactions or really any purpose at all because of fundamental design flaws and misconceptions. Re ‘historically…nobody faced lower demand’ see the 2017 crash and the 2022 crash.
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