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Speaking as someone who experienced both the dot-com crash and the financial crisis from ground zero, this feels nothing like them. I did not see widespread ris
by lvl102 4y ago
Speaking as someone who experienced both the dot-com crash and the financial crisis from ground zero, this feels nothing like them. I did not see widespread risk taking across the board. A lot of Gen Xers, such as myself, almost instinctively recognized current bubbles and either steered away from them or played them as such. People are also a lot more financially savvy. Even if people made leveraged bets, they leveraged with options instead of loans which meant they didn't lose more than what they committed. Sure, some parts of crpyto is very fluffy but I still don't think it is all that widespread.
I think a lot of people calling for a great crash will be disappointed this time around.
- plonk 4y agoCryptocurrencies have huge market caps though. If they crash (like the Luna disaster last week), that has to have some kind of impact, right?
- lvl102 4y agoI really think it’s insulated especially compared to the housing market collapse. This is because most banks will not take your crypto as 1:1 collateral whereas housing was perceived to be nearly risk-free. A big difference. I am not saying we are not in an asset bubble. But it would be a mistake to draw simplistic comparisons.