A systemic effect is currently unfolding in the digital space. Stable coins have been hit, then coins, then lenders, then hedge funds and now crypto exchanges. Unfortunately, the lack of regulation, of regulator, of risk constraint, or even capital buffer will make the fall even more painful.
Why isn’t Bitcoin/Blockchain Russia’s salvation from sanctions?
Many people are posting that Bitcoin and blockchain are somehow a solution for sanctions.
Below are reasons for why that line of thinking is not realistic.
Leverage has benefits on the way up, but it has drawdowns on the way down.
Exchanges need to pay the winners, so they HAVE to go after the losers.
You will get sued, and your house and savings are theirs in most cases
Nigeria had banned cryptocurrencies earlier this year (to little effect). It has now introduced its CBDC, the eNaira. Currency and government stability are the likely reasons. Other countries will follow.
There are structural issues in both the crypto and regulated worlds. But how deep and how frequent are they? Here is a review of Cryptos’ pros and cons.
Heavy demand for the first bitcoin ETF, which was listed yesterday.
But be wary of hidden costs. BITO is an expensive ETF to carry.
A few interesting comments from Fed officials about the likelihood of a US CBDC (a Central Bank Digital Currency would be fungible into our daily US dollar).
You remember our cryptocrook? Quant WizKid, market-neutral hedge fund, Cryptocurrency arbitrage great returns, $90m AUM… Except that it was a Ponzi.
His sentence just came out: 7½ years of jail. Here are the explanation & the context.
Not all central bankers and diplomats have a good opinion of cryptocurrencies.
They are assessing their costs & benefits through articles in prime newspapers.
One diplomat/economist just called for their outright ban.
PwC released its annual Crypto Hedge Fund report; it contains many interesting statistics – fees, size, investor source, strategies, liquidity, performance…