Quote:
Originally Posted by huncho
yeah btc will ultimately be fine because it's not meant to be a security. btc regulation is a bit of a weird case, you can't necessarily regulate what it was trying to solve, which is become a financial system with no middle man, because once someone holds their own keys you can't control what they do with their btc. the part that people want regulated is having platforms in the US that allow people to trade derivatives (perp contracts, options), or even trade spot efficiently. they're not even letting 401ks buy spot because it's "too risky" yet there are plenty of stocks down much more even after today and tons of people wiping out in the stock market, including kids. coinbase is the biggest and safest one currently as it's US based and publicly traded, but most of its functionality is heavily limited as most states don't allow a large amount of crypto functionalities. this pushes people to offshore exchanges that are unregulated and have no insurance. sadly nothing will change and the sec will put more pressure on crypto, but still btc will be what it was meant to be. it's been stated that it's not a security and i think digital gold/large payments will be its use case. i think there are real legitimate reasons for people to own btc in a diversified portfolio
the rest of crypto is literally just unregulated equities that have no real use yet or scam projects that get rugged every week with devs running away with all the money. it remains to be seen if there will be actual use cases like defi or something new but for now they're mostly ponzis that are only useful in bull markets. it's now obvious that the last 3 years had no actual innovation in the space and the entire bull run was just propped up by 4 trading firms all trading on insane amounts of leverage (and even worse, some were using customer funds) and all of which have blown up this year
this is imo the worst day for crypto in its history, although maybe that one day in march 2020 was a bit worse because it actually felt over the day everyone woke up to btc down 50% with the s&p collapse. there were huge hacks and people losing tons of money but never on a global scale like this that will be widely reported by every media outlet. today kinda just makes people realize that we're set back years and a lot of lives have been ruined. just goes to show 99% of it is a ponzi or scam and it's just a lotto to get rich for a lot of people. i feel really bad for people who had large amounts of money on ftx which is now gone. no one even saw it coming because ftx was just one of the absolute safest places to have your money in given its track record until everything came out. SBF was still a horrible person but the platform itself was about as tier 1 as it gets in terms of safety. this guy was lobbying with congress and regulators, buying sponsorships in major US sports, working with the biggest celebs, etc. just the last thing anyone would imagine
|
yup, I agree with practically everything here.
I also think the sell off has not ended. this is going to permanently scar the guys new to crypto. 1000000%. as said I've been around it for near 7 years now, in and out, but never saw it as anything more than a digital gold. and I think that's it's best use case. this event (as you said) isn't really like some of the other pump and dumps and odd occurrences, this was supposed to be a safe haven that wasn't just involved in something minor, this is some unreal stuff. a total manipulation. It really does make one ask 'what is even real in this space?'
also really agree with you about showcasing that nothing really has ben innovated and it was ALL smoke and mirrors about all these amazing use cases. this could be a major turning point for crypto, for the worst.