Cryptocurrencies Face Oblivion. Wipeout Reaches $1.85 Trillion

Cryptocurrencies Face Oblivion. Wipeout Reaches $1.85 Trillion

The cryptoverse plunged further into crisis Thursday as a self-fulfilling prophecy set it. Like almost all forms of money, cryptocurrencies have no intrinsic value, but with the exception of Bitcoin and Ethereum, the shared myth that imbued them with the trappings of value and money-like qualities isn't strong. It certainly isn't widespread for the vast majority of tokens. Bitcoin fell to just above $25,000 Thursday, erasing gains for 2022 in the process (figure below). Measuring from the h
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12 thoughts on “Cryptocurrencies Face Oblivion. Wipeout Reaches $1.85 Trillion

  1. You recently went into the crypto universe and came out a wizened man. That happens to be pure journalism and fortuitous timing. Glad you have put your money where your mouth is and us readers have gained knowledge from your foray and insider experience.
    “ So a crypto and a dollar walk into a bar………

    1. I was wondering the same thing. My thought is the crypto sell off has infected other markets- while not exactly the catalyst I am thinking crypto may be an accelerant to the risk off process. Financial accidents usually precede lower interest rates on UST bonds and spread widenings. If that is the case, buckle your seatbelts.

      1. Agreed, you don’t wipe out 2T in value without consequences across other asset classes. My guess is this will uncover other unstable financial assets that will also crumble under selling pressure.

        2022 is setting up to be a terrible year to be an investor.

  2. Also hats off to our blogger for cluing us all in. The posts have helped me to get something of a grasp about what is going on in the wild west of crypto. Invaluable. Thanks!

      1. That experiment was mission-critical for me. Although learning-by-doing is usually preferable to learning some other way, DeFi is something you really can’t learn unless you do it yourself. You really need to experience this first-hand to write intelligently about it. I’m glad I did it. That experiment was one of the most illuminating adventures I’ve ever been on. And I didn’t have to leave the house.

  3. BTC is back to Dec 2020 levels. “Outperforming” ARKK which is at March 2020 levels.

    I looked for a distribution of crypto ownership by country, no joy. Anyone have this info?

  4. Somehow the tangled web described in this post reminds me a bit of the post-Civil War monetary landscape. In spite of the National Banking Acts of 1863 and 1864, the country’s money supply was totally fragmented as hundreds of state-chartered banks and newly minted national banks all issued their own currency. I once got my hands on a note issued by the First National Bank of Waterloo, IA. That was a big winner. Some money didn’t work, other money was taxed as a penalty to try to reduce the number of currency issues in circulation. Until the Federal Reserve Act of 1913 consolidated our currency, the money confusion continued unabated, especially in the Western states. Today’s crypto web of useless “money” is starting to look much the same as the good old days when nobody’s money was very much good. In my youth we had S&H Green Stamps as a distributed pseudo-currency — Drunken Ape NFT’s anyone?

  5. I have followed that Mahomes kid since he was just a Freshman, I love the kid, but when he started promoting NFT’s it made me cringe a little for him and most assuredly erased any inkling of NFT FOMO for me.

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