How Crypto Replayed the 2008 Financial Crisis with David Morris – What Bitcoin Did

0

David Morris is CoinDesk’s Chief Insights Columnist. In this interview, we discuss the contagion that ravaged the crypto market and how it reflects the worst failures of the 2008 financial crisis. Is regulation necessary for crypto to protect people from the getting rekt?

– – – –

Over the past few months, the crypto industry has experienced a series of seismic events leading to the demise of a still untold number of retail investors. Those to blame are considered, at best, criminally negligent. What happened ?

By now, the “I told you so” refrain has long been worn among Bitcoiner groups. Insanely high APRs, complex algorithmic stablecoin pegs, crypto funds attracting huge amounts of capital – it was background noise that many have just canceled out with blanket rejection from the entire industry.

But there were targeted warnings of danger within the altcoin ecosystem. Industry enthusiasts, who could not be co-opted, set out to investigate the fabulous promises on offer. They found alarming weaknesses, obvious failures, and ruinous incentive structures. Red flags were raised, but by then too many people were caught up in the hysteria to notice.

As we begin to undertake the autopsy, on what is still metaphorically a warm body, the obvious questions arise. How did we, as a collective, let this happen? How can we prevent this from happening again? Are we in the same position as the banking sector following the global financial crisis? Do we need regulations to enforce investor protections?

Share.

Comments are closed.