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> "The ecosystem has proven much more resilient against major players going bankrupt than the traditional financial system. Nobody has been bailed out by a gove
by pavlov 4y ago
> "The ecosystem has proven much more resilient against major players going bankrupt than the traditional financial system. Nobody has been bailed out by a government as far as I know."
That's because crypto, unlike the traditional financial system, doesn't interact at all with the real world of companies, cash flows, employees, their mortgages, etc.
There's no need for the government to step in to save a bunch of crypto traders who got into trouble for inventing tokens that leverage tokens that represent tokens, and so on.
This also explains why the crypto system looks resilient at this point. Retail crypto investors have mostly taken their losses and gone home. The remaining players can manipulate the market to make it look like what they want; it's a shadow play with very little real money left.
Even Peter Thiel sold all his Bitcoin in March 2022 while at the same time making conference appearances where he claimed its price is going to increase by 100x:
https://www.ft.com/content/0a1d5597-7145-4035-987b-ff033bba3d75 https://www.ft.com/content/0a1d5597-7145-4035-987b-ff033bba3...
- roenxi 4y agoAgain, pointing at one person doing something is profoundly weak evidence. Even a big player. The UK sold most of its gold reserves in 2000 and in hindsight looks rather silly. One person is not the market, is certainly not a signal that the market is doing anything in particular. Figuring out the big picture by examining random stories is emotionally satisfying and not very clever. This is a good topic to argue about using aggregates and statistics. Not Twitter threads about ... things that really are predictable from the macroeconomic state of things. There are going to be bankruptcies or spectacles this year based on interest rates alone.