[HN Gopher] The Cryptocurrency Crash Is Replaying 2008 as Absurd...
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       The Cryptocurrency Crash Is Replaying 2008 as Absurdly as Possible
        
       Author : davidgerard
       Score  : 38 points
       Date   : 2022-05-12 20:23 UTC (2 hours ago)
        
 (HTM) web link (foreignpolicy.com)
 (TXT) w3m dump (foreignpolicy.com)
        
       | rvz wrote:
       | 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 and as a
       | _currency_ , it is safe to say that experiment has totally failed
       | and that was found out the hard way.
        
         | ElDji wrote:
         | So basically bitcoin died again. Oops.
        
         | mirceal wrote:
         | Is it safe to say that Bitcoin failed?
        
           | randomhodler84 wrote:
           | 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.
        
             | rvz wrote:
             | > 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.
        
               | jakupovic wrote:
               | Just because you keep repeating something doesn't make it
               | true, same goes for your statements. Tick-tock next block
               | ...
        
       | davidgerard wrote:
       | archive: https://archive.ph/cNkr5
        
       | sharadov wrote:
       | 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".
       | 
       | https://www.bloomberg.com/opinion/articles/2022-05-12/crypto...
        
         | Barrin92 wrote:
         | >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.
        
           | rglullis wrote:
           | How much of FAANG's customers would cease to exist and stop
           | spending if crypto went to zero?
        
             | blibble wrote:
             | probably less than 1%
        
       | CPLX wrote:
       | 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.
        
         | quantified wrote:
         | There's bleed in various areas. Institutional investors own
         | stocks in the companies involved. Microstrategy made owning
         | Bitcoin part of its business. Stupid abounds.
        
           | NicoJuicy wrote:
           | That's because their own business was faultering
        
             | javert wrote:
             | Is there evidence for that?
             | 
             | You have to wonder. But Michael Saylor comes across as a
             | true believer in bitcoin.
        
         | [deleted]
        
         | fartcannon wrote:
         | 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?
        
       | quantified wrote:
       | Matt Levine writes well about it:
       | [https://www.bloomberg.com/opinion/articles/2022-05-10/anothe...]
        
         | arrakis2021 wrote:
         | 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.
        
           | quantified wrote:
           | 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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       (page generated 2022-05-12 23:01 UTC)