Long winter lies ahead for cryptocurrencies
Instead of reinventing traditional banking and finance, cryptocurrency seems to behave just like any other risky asset class
The inevitable crypto implosion has arrived. It seems as if the world has looked behind the curtains of this volatile asset class to discover the emperor has no actual assets.
The hype of a new thing and the fear of missing out (fomo) have driven growth so far. Cryptocurrencies have had a torrid year. Bitcoin is down 50% in value, while ethereum has lost over 65%. From a peak $3-trillion in value in November 2021, all crypto assets were last week valued at only $884bn, according to CoinGecko. Ouch...