There is a good thing in this FTX story going on: we are going to have a film! On the bad side, 10 billion “evaporated”.
Sources: Taleb’s paper; WSJ; Matt Levine in Bloomberg
It’s not a secret that I’m bearish on crypto and somehow bullish on blockchain technology.
Nassim Nicholas Taleb already demonstrated in a paper that Bitcoin, the all-mighty crypto, is:
1) not a currency, 2) not a store a value, 3) not an inflation hedge, 4) does not protect against “tyranny” and 5) not decentralised.
The overall situation in the crypto space reminded me of the “dot-com” bubble, which resulted also in billions spent on infrastructure which was later used by the next generations of startups launched between 2004 – ongoing.
So maybe, just maybe, all this money vaporised will not be in vain. Hopefully!