Crypto infection – further declines through 2023

This FTX scandal is zero death for cryptocurrency. At first, I assumed they might have lost a lot of money because of the bond market crash. But this was not the case. In fact, this is probably the worst I have ever seen and it comes from trading losses from kids who have absolutely no experience in terms of trading. Obviously, they didn’t even understand fiduciary responsibility. MF Global was taking clients’ money to trade in London and got the market wrong. Bernie Madoff remains a mystery wrapped in a political puzzle. From 1991 to 2008, Bernie and Ruth Madoff contributed about $240,000 just to federal candidates, parties, and committees. Madoff was not trying to buy influence as was happening at FTX. Maxwell died under mysterious circumstances in 1991 when his trading scandal came to light, but he was secretly supporting the Communist coup against Gorbachev in 1991.

Then there were the ENRON and Worldcom accounting scandals where they hid their losses and failures, and engaged in accounting fraud to cover up the real story. But there was no use of other people’s money in the trade, they were hiding their poor performance from the shareholders hoping for a return.

This is the common denominator. I have been called upon in many crises. One thing that is always at issue is the refusal to admit fault. This seems to lead to a continuation of losing trades in the hope of a notorious comeback. The motive seems to be the same and many of the problems I’ve been called upon to help solve have been in companies where some strategies have gone wrong. In these instances of Enron, Worldcom that was allowed to fester. Trading scandals continue with the hope that the next trade will restore everything.

The cryptocurrency contagion instigated by FTX has only gotten more interesting since Sam Bankman-Fried sent out a series of cryptic tweets spelling out the words “what happened” after he forfeited his fortune. After the collapse of FTX, we are looking forward to the collapse of confidence in all digital assets.

With this degree of collapse even in Bitcoin, there will be more bankruptcies. Inexperience grips this young field and it faces a severe slump ahead by 2023, and this downturn is far from over. The decline in Bitcoin from the high of 2021 is not likely before 2023. Hence – as they say – it’s not over ’til the fat lady sings (referring to Opera).

“FTX & Crypto-Implosion”.

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