After the spectacular collapse of the FTX cryptocurrency exchange, many commentators have been left wondering whether the crypto bubble – long foreshadowed – has finally burst, leaving many investors in a world of pain.
Below is a round-up of opinion pieces you need to read today:
Michael W. Green writes that former FTX CEO Sam Bankman-Fried was once hailed as the “new Warren Buffet” and shared a stage with former British prime minister Tony Blair and American president Bill Clinton to discuss the FTX Exchange. But now, he looks more like disgraced ‘inventor’ Elizabeth Holmes or worse, Bernie Madoff.
Over the past year, crypto companies have collapsed at a stunning pace with incredible losses while Bankman-Friend swooped in as the white knight looking to save many failing cryptos. But after the 30-year-old lost almost all his money in a single day and resigned from his company, there are those wondering who will ride in and be crypto’s saviour. Emily Parker argues that cryptocurrencies shouldn’t need a saviour because the whole point is that they are decentralised and transparent.
Adam Lashinsky writes that the crypto bubble will end like all other fades, with a lot of wreckage and destruction. Small-time investors have already abandoned cryptocurrency while venture capitalists will move along to the next shiny thing deemed worth investing in. But while other bubbles that have burst over history still offered some sort of value, crypto has offered very little in a worsening global economy.
More than 95% of cryptocurrencies are silly or fraudulent and nearly all will head for zero value, but the promise of Bitcoin is still valid as possibly becoming the world’s de facto currency. Cody Willard believes Bitcoin will overtake the US dollar as the world’s reserve currency and while there is a lot of pain and losses in crypto already, it’s important not to write off the entire industry.
