You are not the only one who is feeling the effects of the great crypto crash of 2022.
In a controversial Foreign Policy editorial, David Gerard argued that this week's crash of cryptocurrencies is very similar to the 2008 financial crisis.
The economy was running hot prior to the financial crisis, and companies were rushing to find somewhere smart to put their money.
Financial engineers created dollar-equivalent products that were backed by assets such as real estate or securities backed by real estate.
The current crash is similar to the crisis and could be even worse.
The boom and bust cycle of cryptocurrencies seems to mirror the same tendencies in the stock market.
Another historical precedent for the so-called stable coins that peg their market value to the dollar has turned out not to be so stable after all.
The news comes after the most popular stable coin, Tether, fell to an all-time low.
Slate coins are a modern form of the wildcat banks of the 1800s, which issued dubious paper dollars backed with questionable reserves, leading to the creation of federal agencies.
Stable coins need to be as regulated as banks are. All of the newer versions of existing systems have no advantage as long as they get away without being properly regulated.
Hopefully, more people will listen after someone had to say it. The next boom and bust cycle could be around the corner.
There is a possibility that the 2008 crash is Absurdly as Possible.
There were more suicidal posts after the crash.
All Rights Reserved © 2024
