But if there is a problem with sin taxes, it is not that they are ineffective. Rather, it is that they are inefficient. Sin taxes are blunt policy instruments. People who only have the occasional drink are not taking on any great health risks, yet they are taxed no differently than serious alcoholics. A similar logic applies for sugar taxes. Tobacco presents a slightly different problem. Nicotine is highly addictive, meaning that there are relatively few people who smoke cigarettes only occasionally.
I think this is a small price to pay. If I have to pay an extra dollar or two for my pack of beer once or twice a month, I'm not going to notice it. The alcoholic who is paying an extra few dollars on the bottle of vodka he buys every day is definitely going to notice it. Sin taxes have been shown to work.
I'd also support them from a Pigovian tax point of view - the extra tax on these activities can be used to offset the excess healthcare costs associated with obesity, alcoholism, smoking, etc.
Having said all that, crypto definitely shouldn't be subject to a sin tax.