Cryptocurrency divides the categories of celebrities into two camps: Boosters and Doubters.
Gwyneth Paltrow, Snoop Dogg, and Justin Bieber - all joined a growing camp of crypto supporters. But digital goods also have their opponents, including the former "The O.C". star Ben McKenzie, co-author of a book on the dangers posed by cryptocurrency.
Best-selling author Michael Lewis, whose 16 books include in-depth stories on the thrills and adventures of Wall Street, seem to fit in between the two camps.
In a new interview, Lewis warned that the value of cryptocurrency could fall sharply and its widespread adoption could lead to normal financial markets. But he also praised the new crypto features that he said could create equity among traders.
"The whole thing could go down," said Lewis, whose podcast "Against the Rules" has just returned for its third season. "Crypto is an act of faith - like gold, like a dollar."
"It is difficult to judge - it is impossible to judge - whether that faith is strong or not," he adds. "But in the long run, it poses a serious threat to the existing financial system."
Although major stock indexes have lost so far this year, cryptocurrencies widely held by bitcoin (BTC-USD) and ethereum (ETH-USD) have seen a sharp decline. Bitcoin is down 16% so far this year, while Ethereum is down 21%, from the start of Wednesday morning.
But cryptocurrency advocates say that volatility is expected in a new asset class, often noting that regulatory uncertainty helps to promote market volatility.
Treasurer Secretary Janet Yellen last week called for cryptocurrency regulation in a broader context, saying government intervention would monitor the rapid spread of digital assets and prevent illegal use.
The remarks came just weeks after President Joe Biden signed a cryptocurrency board order in March. Many top crypto players have commended Biden management for the move.
Lewis, whose 2014 letter raised criticism of the widespread use of commercial venture on Wall Street, said loan markets could improve budget markets by eliminating profitable traders from other traders.
Cryptocurrency "removes middlemen," Lewis said. "If you trade on a cryptocurrency exchange, you have an exchange account; you do not count the trader who transports your goods in and out of the trade."
"There are no high-end traders who pay for cryptocurrency exchange for instant information about trading," he adds. "The jerry-rigging of the stock market is not happening here."
