Sam Bankman-Fried wanted to make the crypto world acceptable

Dhe week of the dramatic decline of the FTX crypto exchange ended with strong price gains on the classic financial markets. The stock exchanges were unmoved by the meltdown in the crypto world. This is a strong indicator of macroeconomic irrelevance. How different it was in 2008. When banks gambled, the stock markets collapsed. Governments felt compelled to carry out bailouts because they saw the central function of financial institutions at risk: providing the economy with credit for investment and consumption.

The crypto world crisis, which has now escalated after a series of bankruptcies in the demise of the multi-billion dollar crypto exchange FTX, obviously does not produce any economic risk. There are hardly any entanglements between the crypto world and the real economy, apart from spending millions on advertising, lobbying and software.

Even the great theoretical advantage of so-called cryptocurrencies, that they reduce the costs of financial transactions, has not yet been shown. Ordinary goods are not paid for in crypto, even the most adventurous entrepreneur Elon Musk reinstated the ability to buy Teslas with bitcoin after a trial run. “So much in the crypto-financial world is borrowing in crypto for investing in crypto,” writes economist and blogger Joey Politano.

donors to the Democrats

This is despite the tireless efforts of FTX founder and supposed crypto prodigy Sam Bankman-Fried. He pursued a plan that initially seemed paradoxical as to how the marginal spruce existence of his profession could be ended: with strict regulation. His central thought was that regulation opens up access to the big financial pots: the pension funds, the insurance companies, the corporate securities savings plans of many Americans.

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