Virtual currency markets have gone through similar cycles as those highlighted by Bagehot in 1873, modernizing his outlook over currency mechanics. The excess wealth created during the bull run of 2016-17 in the virtual currency markets had nowhere to go. This capital, combined with the advent of the Ethereum ERC20 token, allowed many companies to issue blockchain tokens and sell them to investors. The triviality of creating a blockchain token married to the excess capital led to an influx of newly-formed companies, both legitimate and illegitimate. This also led to the proliferation of “stablecoins”, which are parity-stabilized virtual currency representations of fiat currencies, primarily USD variants, initially used only by traders seeking less volatile refuges.