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The Cryptocurrency Crash Is Replaying 2008 as Absurdly as Possible

foreignpolicy.com

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Re: The Cryptocurrency Crash Is Replaying 2008 as Absurdly as Possible

#11

Post by fartcannon »

CPLX wrote: post #4

Yeah but is crypto causing the crash or just a symptom of it? It doesn’t seem like all the large investment banks and reinsurers are flirting with insolvency due to crypto exposure. They definitely were due to CDO and mortgages. That distinction seems substantive.

An opportunistic scapegoating by the banks, maybe. There's quite a lot of astroturfing about crypto (for and against these days). I'd expect a couple decades of conspiracy theories about their role at the very least.

But Bitcoin was created as a response to the banks failures in 2008, so maybe they're trying to get ahead of that message returning this time around.

Anyone work in PR for mortgage companies? What kinda position are you taking right now?

Re: The Cryptocurrency Crash Is Replaying 2008 as Absurdly as Possible

#12

Post by Barrin92 »

sharadov wrote: post #10

200 Billion in crypto wiped out in 24 hrs is bound to cause ripple effects in traditional finance as well. "Crypto has at least started to work its way into the real financial system. Some traditional investors also own crypto; if their crypto goes down they might have to sell regular stuff. Some public companies are exposed to crypto (because they are crypto exchanges, because they have levered crypto holdings, etc.…

>so your boring old index fund might go down when crypto goes down

I need someone to explain to me how my S&P 500 blackrock ishares are going to die from crypto. I don't think FAANG, Berkshire, Exxon and Pfitzer are going to notice if all of crypto dropped to zero right now.

Re: The Cryptocurrency Crash Is Replaying 2008 as Absurdly as Possible

#13

Post by ElDji »

rvz wrote: post #2

Exactly. Maybe that is why it is the justification for more regulations for stablecoins. Highly likely that is going to happen or introducing their own CBDCs like China or both co-existing once the regulatory framework around stablecoins becomes clearer. Then we will see which ones will comply or not. As for the crypto-maximalists screaming about Bitcoin as a peer-to-peer electronic cash system for on-chain payments…

So basically bitcoin died again. Oops.

Re: The Cryptocurrency Crash Is Replaying 2008 as Absurdly as Possible

#14

Post by rglullis »

Barrin92 wrote: post #12
sharadov wrote: post #10

200 Billion in crypto wiped out in 24 hrs is bound to cause ripple effects in traditional finance as well. "Crypto has at least started to work its way into the real financial system. Some traditional investors also own crypto; if their crypto goes down they might have to sell regular stuff. Some public companies are exposed to crypto (because they are crypto exchanges, because they have levered crypto holdings, etc.…

>so your boring old index fund might go down when crypto goes down I need someone to explain to me how my S&P 500 blackrock ishares are going to die from crypto. I don't think FAANG, Berkshire, Exxon and Pfitzer are going to notice if all of crypto dropped to zero right now.

How much of FAANG's customers would cease to exist and stop spending if crypto went to zero?

Re: The Cryptocurrency Crash Is Replaying 2008 as Absurdly as Possible

#15

Post by arrakis2021 »

quantified wrote: post #6

Matt Levine writes well about it: [ https://www.bloomberg.com/opinion/articles/2022-05-10/anothe... ]

It’s fascinating read.

Still, the amount of brain power Matt has dedicated to this makes me feel like it would be better spent elsewhere.

Re: The Cryptocurrency Crash Is Replaying 2008 as Absurdly as Possible

#16

Post by rvz »

randomhodler84 wrote: post #9
mirceal wrote: post #5

Earlier quoted context omitted.

Is it safe to say that Bitcoin failed?

It is not safe to say, but rvz likes to keep saying it. When the blocks stop, it has failed. It’s a timechain, a decentralized clock. Tick Tock Next Block.

> It is not safe to say, but rvz likes to keep saying it.

Yes it is. Assuming you have read the whole article, it is safe to say that it has failed in its original purpose. I and and many others keep saying it because it is an irrefutable fact after many years of its existence. In the case of the author on Bitcoin and the contents of this article, he has made that totally clear.

Hence, can one use it for on-chain payments as described in Satoshi's white-paper which was supposed to be better than the current system or even as a currency?

Please think about your response to this question before answering.

Re: The Cryptocurrency Crash Is Replaying 2008 as Absurdly as Possible

#17

Post by javert »

NicoJuicy wrote: post #8
quantified wrote: post #7

Earlier quoted context omitted.

There’s bleed in various areas. Institutional investors own stocks in the companies involved. Microstrategy made owning Bitcoin part of its business. Stupid abounds.

That's because their own business was faultering

Is there evidence for that?

You have to wonder. But Michael Saylor comes across as a true believer in bitcoin.

Re: The Cryptocurrency Crash Is Replaying 2008 as Absurdly as Possible

#18

Post by jakupovic »

rvz wrote: post #16
randomhodler84 wrote: post #9

Earlier quoted context omitted.

It is not safe to say, but rvz likes to keep saying it. When the blocks stop, it has failed. It’s a timechain, a decentralized clock. Tick Tock Next Block.

> It is not safe to say, but rvz likes to keep saying it. Yes it is. Assuming you have read the whole article, it is safe to say that it has failed in its original purpose. I and and many others keep saying it because it is an irrefutable fact after many years of its existence. In the case of the author on Bitcoin and the contents of this article, he has made that totally clear. Hence, can one use it for on-chain pay…

Just because you keep repeating something doesn't make it true, same goes for your statements. Tick-tock next block ...

Re: The Cryptocurrency Crash Is Replaying 2008 as Absurdly as Possible

#19

Post by quantified »

arrakis2021 wrote: post #15
quantified wrote: post #6

Matt Levine writes well about it: [ https://www.bloomberg.com/opinion/articles/2022-05-10/anothe... ]

It’s fascinating read. Still, the amount of brain power Matt has dedicated to this makes me feel like it would be better spent elsewhere.

Were that there were other topics to occupy his mind. I just like the way he thinks about them and voice he gives to the explanations.
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