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I Will Keep Buying Crypto. Crypto is in a bad state right now. | by Mohamad Hakim | Nov, 2022

Ponzi Scheme

I Will Keep Buying Crypto. Crypto is in a bad state right now. | by Mohamad Hakim | Nov, 2022

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Crypto is in a bad state right now.

Courtesy of Pexels.com

LUNA’s implosion early this year was a massive blow to the crypto space, destroying any semblance of reputation crypto had.

Then, FTX collapsed.

This further damaged the credibility of cryptocurrencies. Institutional interests waned, and investors turned away.

What is more upsetting is that an investigation following up on FTX’s collapse revealed a massive loophole in the crypto space.

Sam Bankman-Fried has been running an enormous Ponzi scheme and managed to fool everyone, even top institutions like Temasek. Billions

But I won’t be talking about that. Coffeezilla, Wall Street Millenial, and ColdFusion have already made great videos on the topic.

I fear the future of Cryptocurrencies

Bitcoin was invented as a response to the 2008 financial crisis.

Satoshi Nakamoto had a vision in mind which was to allow individuals to form transactions with one another without the need for a middleman, aka banks and the government.

This decentralized dream puts the power back into the hands of the people.

But recent revelations threatened that dream.

Central banks are experimenting with using centralised bank digital currencies (CBDCs).

CBDCs get the best of both worlds, combining the digital benefits of crypto with the governmental control of fiat.

“CBDCs could also decrease the maintenance a complex financial system requires, reduce cross-border transaction costs, and provide those who currently use alternative money transfer methods…

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