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It's actually an interesting thought experiment to try to figure out what would (will?) happen when all this comes crashing down. I am an extreme skeptic on al
by CPLX 5y ago
It's actually an interesting thought experiment to try to figure out what would (will?) happen when all this comes crashing down.
I am an extreme skeptic on all things crypto, I don't hold any and I think it's basically a gambling fad. But, with that said, I grudgingly recognize that it now has some powerful establishment interests behind it and things that have that tend to defy the laws of gravity, often forever. So I have no idea what will happen.
But it's interesting to contemplate scenarios. One obvious one might be that crypto values would be highly correlated to the values of specific stocks that are in favor by crypto enthusiasts (aka "meme stocks" or maybe Tesla, etc) and that if there's a full on crypto crash those specific stocks will be annihilated by margin calls, since it's the same set of retail investors.
That's one hypothesis, I'm sure there's many other interesting ones.
- satellite2 5y agoYou have a pretty detailed account of what would happen by the Economist https://www.economist.com/finance-and-economics/2021/08/02/what-if-bitcoin-went-to-zero https://www.economist.com/finance-and-economics/2021/08/02/w...