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Worst of its kind?
Bloomberg writer Merrin Somerset-Webb said: The FTX crypto bubble really sucks.
Investment bubbles tend to leave behind something useful when they burst. Unfortunately, crypto looks like an outlier.
Webb compares the cryptocurrency bubble to the bicycle bubble of 1896, noting that better bicycles, initially very slow automobiles, were mocked by people as get on the horse, and that far superior technology would come to us. Compare that to the dot-com collapse that brought about.
Crypto Bubble Contained
First of all, the crypto bubble has been contained. Aside from the plummeting of Bitcoin and Ethereum, trillions of dollars in wealth will go to nothing. However, almost nothing happened outside of virtual currency.
There were no bank failures, no bailouts, no wasted taxpayer money. If you invested in tokens like FTX or LUNA, you lost everything, but life went on otherwise.
The fact that the bubble has been contained in cryptocurrencies is a good thing that deserves investigation in its own right.
Amid the housing bubble and bust, then-Federal Reserve Chairman Ben Bernanke called Lehman’s bankruptcy his biggest mistake. ).
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Continually bailing out financial institutions and setting interest rates too low encourages, if not outright, speculative mania.
How is the knowledge gained?
We have learned something from this, if only to burst the bubble. The Federal Reserve failed to do so in 2002 and 2008, and failed in its earlier long-term bailouts of capital management.
When it comes to Bitcoin and Ethereum, even if those coins ultimately prove to be worthless, eventually the technology will work somehow.
The fact that we have not seen any failure of financial intuition regarding the cryptocurrency collapse is a good thing. Even if you can’t see it now, I’m sure there will be some good results from these ideas in the future.
Origin of this post: MishTalk.Com.
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