Václav Dejčmar is a billionaire, economist, investment market analyst and a big proponent of virtual currencies. On their own Facebook often follows the events in the digital world. Now he has been one of the first to comment on the likely fall of the fourth largest cryptocurrency exchange in the world, FTX. What this will mean for the stability of Bitcoin and other cryptocurrencies and whether virtual investments remain permanent assets, he discusses in his comment..
The fourth largest cryptocurrency exchange in the world, FTX, probably went bankrupt yesterday. Are Bitcoin and cryptocurrencies about to end?
The situation is also extreme as this exchange belongs to a person who in the last year has profiled himself as a crypto-genius, or rather almost like a crypto-Jesus. Sam Bankman-Fried (SBF) likes to go on the stock exchange and say he doesn’t care much about the money, he plans on giving it all away and when some cryptocurrency projects started having problems this spring, he immediately rushed to help with his. billions and through his FTX Ventures fund he was saving what he could “for the sake of a system he believes has allowed him to get rich and do good.”
A billion here, a billion there … the former Jane Street Capital hedge fund protege shone in his thirties and continued to fascinate. As of this Monday, his fortune was estimated at sixteen billion dollars. Now it is difficult to say whether the same person has even more than a billion.
In any case, in relation to the volume of assets, this is the fastest / heaviest loss of wealth of a billionaire in history, so the crypto-angel who turned into a crypto-devil overnight will at least go down in history. . His FTX exchange is offline and Sam Bankman-Fried, who lied at length and vehemently denied any problems, just announced that the exchange has an eight billion dollar coverage.
But back to the question, what does this mean for cryptocurrencies and bitcoin? I don’t know about cryptocurrencies. I have long felt that most crypto projects are nonsense that no one needs. At best it’s gambling and speculation (which is a valid form of entertainment if you know what you’re doing – Las Vegas is all there is), at worst it’s a Ponzi scheme and a “last out” style trap.
As for Bitcoin, the situation is clearer here: all this fun has practically nothing to do with it. Any reasonable bitcoin saver for thirteen years understands the lesson “not your keys, not your money”. Bitcoin has already survived various crashes and the fall of crypto-Jesus, who founded his exchange three years ago, so from the perspective of Bitcoin’s philosophy and history, it represents just another ripple in the stormy sea.
Unfortunately, the unfortunate thing is that cryptocurrencies have lost another media personality. People need reliable religion and divinity, so the fall of SBF can shake faith in the whole system. Over the past couple of years, it has been possible to turn bitcoin (and a few other high-quality crypto projects) into an asset class. That is, the “asset class” that the rich and large institutions automatically include in their investment portfolios. Although only in a small percentage, they are already included by consensus.
The SBF case is so powerful that investment capital (hand in hand with regulators) could reconsider this position in the coming days. We will know that this has happened from my point of view of the price of Bitcoin. If it drops below ten thousand dollars, it means that support is lost and in that case the whole “HODL” philosophy would be at risk.
Bitcoin would return to geeks and nerds for a long time (perhaps forever). Investment capital would stop taking it seriously. If you want my personal advice, I would say that it will not happen for many reasons, the big names will instead take advantage of the current situation and start buying from a certain price level. But the situation in the world is so complex and the SBF case so timely that a similar development cannot be ruled out. The next few days will be interesting to watch.
Final note: once again it has been confirmed that the vast majority of the things that surround us are just form, pose and foam without substance. Don’t look at the people, how they are dressed and what cars they have. See what they do and listen to what they say.
As early as June 29, the SBF declared that the market situation is difficult, some cryptocurrency exchanges are already secretly insolvent and will soon fall. All you had to do was listen. As I’ve been told over and over from many job interviews, when someone talks insightfully about what’s wrong with the world, or what they don’t like about other people, they usually talk about themselves.
