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Views on Crtypto

 

 

Crypto is Dead – Views as collected

The Crypto is Dead Article by Chetan Bhagat today - posted earlier - has set off a demographic divide with youngsters feeling he failed to grasp the essentials. I asked some sound seasoned investment experts - sorry no names - about their views. Let the debate begin.

This is super harsh and shows he doesn’t really understand crypto

Nor does he understand why the crash happened say young people.

 

Personally,

I agree with his views.

Crypto is not an asset class.

It has no underlying value.

It has all the characteristics of a bubble & basically plays on 'FOMO' & 'Greater Fool Theory'

 

We have always recommended all our investors not to venture into crypto & if they have a strong urge, they should only invest their play money, ie money they are willing to lose or casino money.

My humble take on Crypto.

What I never understood is … how was the value of a crypto arrived … it was always a blind spot

What I never understood is … how was the value of a crypto arrived … it was always a blind spot

Had gone through the article in morning itself.

 

Agreed with the authour except on two counts,

A) Could not explain fully the reasons of crash (mentined only investor moving towards safe heavens in eta of high inflation and interest rates)

B) The crypto is deed. Any speculative investment can not die like this. There are various cycles. Imagine if Russia Ukraine War reach settlement, the inflation in world economy wd ease, pressure of recession wd soften. Otherwise too, say there is no truce of war and after one /two quarters pshychology of economic agents accept the thinds as new normal, there is likelyhood of reversal of cycle of speculative/trading pattren in crypto.

So it is not dead but has become fragile, animic can bounce back with above medicine.

 

🌹🌹

 

Crypto is totally unregulated.FTX exchange which collapsed was valued at 32 billion dollars one month before and they were trying to raise one billion dollar from wealth funds etc They were having brokerage also and running the exchange also.the deposit of people were diverted and even staff salaries and bonusses were converted into equity of exchange.All were run from a island in Bahamas and Sam bankman fried was considered as demigod and had notional wealth of 16 billion dollars.Even though they claim crypto is based on blockchain technology and cannot be breached.The brokerage found a loop hole in software and when it was about to collapse 662 million dollars were ripped of and encashed through other crypto exchanges.The FTX had 900 million as liquid funds as against 9 billion liabilities..Hence it ran into ALM mismatch .As the entire universe is unregulated it is very difficult to retrieve the money The founder overnight became a pauper from 16 billion dollars to 600 million dollars and has filed for insiolvency It is a volatile world and better to look for other avenues.It is a ponzy scheme like MLM

What I never understood is … how was the value of a crypto arrived … it was always a blind spot

 

What a common person cannot understand, how can it be something which will be adopted ny masses

Interesting one.

I could never understand crypto's valuation aS it was not backed by any asset. Thr bubble was bound to burst.

I could make it when Elen Musk had started giving statements on cryptocurrency. I asked all my known to withdraw from it.

 

FTX has applied for insolvency. The truth may emerge once the enquiry is held by the agencies concerned. But people have become from crorepati to Zero pati.

 

Very lax regulation and then crypto is outside regulation

 

Good morning🌹🌹

About crypto late Rakesh Jhunjhunwala said he didn't think it was worth discussing. Charlie Munger has said crypto is a bad combo of fraud and delusion.

 

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