- The world of cryptocurrencies has touched a whopping 10 Trillion Dollar market.
- Everyone is beginning to appreciate that the current version of cryptocurrencies, to some extent, relies on the greater fool theory.
- That means the speculators are buying the currency and expecting the prices to increase just because they believe others are also purchasing the same coin.
Cryptocurrency Fandom Trending
Everything is unpredictable in the world of technology. Sometimes it still shocks me how we let something like cryptocurrencies become such a vast industry without thinking about the risks of the system being created.
The world of cryptocurrencies has touched a whopping 10 Trillion Dollar market.
Crypto coins, derivative securities, exchanges, and the leverage created to support them now equal nearly half the asset size of the entire U.S. banking industry.
So, we had caught a big break by having a crypto winter before this unregulated industry grew even more significant and subsumed other financial markets.
What Bill Gates Has To Say In This
The question is: what are the lessons we can grab from this……..
Let us explore together:
This study was done by none other than the software king: Bill Gates.
Everyone is beginning to appreciate that the current version of cryptocurrencies, to some extent, relies on the greater fool theory.
This refers to the statement that everyone is beginning to appreciate cryptocurrencies, specifically the cryptocurrency which is present now, depending on the greater fool theory.
That means the speculators are buying the currency and expecting the prices to increase just because they believe others are also purchasing the same coin.
As we all know, the history of the investment world is against this principle. That means the chances that crypto in its current form would grow from this point is impossible.
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This all has been the result of some financial developments. Five, to be precise. These terms are listed in the following:
- Due to the floating rate, cryptocurrency-based skepticism is constantly increasing. This is due to the crashing prices of cryptocurrency.
- There was a trend of many do-it-yourself stablecoins during the bull market. This regime got collapsed suddenly in the bear market.
- An increasing appreciation for the risks inherent in unregulated, decentralized financial technology (Defi) where there are no safety nets.
- Concerns about the sanctity of customer assets held by crypto exchanges.
- The general erosion of the economy is now marked by 8.6 percent inflation, supply chain disruptions, and the effects of the war in Ukraine.
Larry David’s iconic Super Bowl commercials predicting crypto would not work out were more prophetic than the sponsors anticipated.
Source: https://www.thecoinrepublic.com/2022/07/04/crypto-winter-giving-everyone-fever/