The recent bankruptcy and collapse of the giant Bahamas-based cryptocurrency trader FTX has left a lot of people who were trying to make a ‘buck’ the easy way left holding the bag with nothing in the bag. The whole business of crypto currency begs the question, ‘What could possibly go wrong when you combine an artificial currency with an unregulated market and then throw in a few hedge funds?’ The obvious answer is, everything.
The crypto wizards with all of their tech talk of node counts, active wallets, blockchain technology and on and on just can’t get past the fact that at the end of the day it all boils down to its value against the US dollar. Thus, if you are playing around in a volatile market with little real regulation it should be no surprise that no matter how big you are like FTX, failure is a strong possibility. Crypto currency should be defined for what it really is, fishing in somewhat risky waters.
Maybe there is something to be said for the motto that John Houseman used in the commercials for Smith Barney in years past where he said, ‘We make money the old-fashioned way, we earn it’. It would seem to be a better philosophy in the long run than that of the character that Michael Douglas plays in the movie Wall Street where he claims, ‘Greed, for lack of other words is good! Greed is right! Greed works.’
Maybe crypto currency sales should carry a disclaimer, ‘Buyer Beware.’