How Money Works

Can We (Finally) Admit That Crypto Was Really... Dumb?

Looking to grow your business online? Get started today with a free 15-day trial from Odoo https://www.odoo.com/r/hGZ6 ----- (The Rapper Formerly Known As) Boyle's Video: https://youtu.be/Xhrzm4CmpEo?si=iYEEehcR5fXu8g20 Sign up for our FREE newsletter! - https://www.compoundeddaily.com/ Books we recommend - https://www.howmoneyworkslibrary.com/ Listen on Spotify - https://open.spotify.com/show/5gi1JobDJC3QqaF4aKfenR?si=f3IsgWIlSKObF8BT1Fitig ----- My Other Channel: @HowHistoryWorks @HowMoneyWorksUncut Edited By: Svibe Multimedia Studio Music Courtesy of: Epidemic Sound Select Footage Courtesy of: Getty Images 📩 Business Inquiries ➡️ [email protected] Sign up for our newsletter https://compoundeddaily.com 👈 All materials in these videos are for educational purposes only and fall within the guidelines of fair use. No copyright infringement intended. This video does not provide investment or financial advice of any kind. #money #finance #crypto ----- Since its all-time high in October of last year, Bitcoin and all other major crypto-currencies have halved in value. The collective market capitalization of these tokens fell from 4.4 trillion dollars to just under 2.2 trillion dollars as of the time this video is posted, and these numbers alone don’t even tell the full story because… well… the US dollar has ALSO been falling which has made things look better than they really are. If Crypto was meant to be a currency, the majors have lost almost 50% of their purchasing power within the last month alone putting them close to the technical definition of hyperinflation. If it was meant to be an alternative payment system then network delays, costs, and fundamental scalability limits have made it very hard to justify outside of very specific use cases… If it was meant to be a store of value then this time last year one bitcoin could buy 32 ounces of gold… today it can buy less than 12 ounces… And most damning of all… If it was meant to be an alternative to get around “the system” it isn’t helping that most trading now takes place on centralized exchanges and the very government it was supposed to superceed has been floating the idea of a crypto bailout… which some purists might recall was the very same reason why bitcoin was created in the first place… Crypto may have become a solution in search of a problem but… well it’s not like we haven’t been here before… Bitcoin (alongside other cryptocurrencies and projects) have all seen dramatic declines in the past following events like Mt Gox Imploding, the silk road being seized, China banning crypto, china banning crypto again, FTX imploding and people admitting to themselves that NFTs weren’t going to be the asset of the future… Every time that these assets then set a new price record it was used as irrefutable proof to say “I told you so”... normally with the help of some laser eyes. But today, crypto is facing a new challenge… legitimacy… a decade and a half of fraud, grift and crime might not have been able to kill cryptocurrency but it turns out that a few months of almost unrestricted compliance might… There are a few major headwinds all hitting these markets at the same time right now, and if we can properly understand each of them we can address something really important… Is it finally time that we can all admit this whole thing was just really stupid yet?