# Externalities
The problems with crypto assets fall into several categories.

## Environmental
1. [Crypto investments that use proof of work have an absurd environmental footprint.](../claims/is-environmental-footprint.md)
2. Crypto investments waste energy that is better spent on more productive enterprises. 

## Legal
1. [Crypto investments violate securities laws](../claims/is-legal.md)
2. Crypto assets are largely used to circumvent laws around [illicit financing](illicit-financing.md) and [money laundering](money-laundering.md).
3. The history of [private money](private-money.md) indicates these projects lead to vast conflicts of interests and potential enormous frauds.

## Financial Risk
1. [Crypto investments expose the public to undue risk](../claims/is-systemic-risk.md).
2. It is an enormous opportunity cost the directs capital towards unproductive enterprises and scams rather than into growing other businesses.
3. The structure of it as an investments is [negative-sum](zero-sum-game.md). Most investors are guaranteed tot lose money.
4. It is most likely a [bubble](bubble.md).

## Social Problems
1. [Crypto investments encourage gambling](../claims/is-gambling.md)
2. Coins that use [proof of stake](proof-of-stake.md) are plutocratic, result in centralization and consolidation.
3. Crypto assets like [NFT](nft.md) [financialize](../claims/is-hyperfinancialization.md) things, especially abstract things, which should not be financailized.