Attention Economy


Thursday, May 12, 2022

The Latest Crypto Crash

Bitcoin Is Increasingly Acting Like Just Another Tech Stock
https://www.nytimes.com/2022/05/11/technology/bitcoin-price-crashing-stocks.html
Cryptocurrencies Melt Down in a ‘Perfect Storm’ of Fear and Panic
https://www.nytimes.com/2022/05/12/technology/cryptocurrencies-crash-bitcoin.html  

Turmoil and panic in crypto market as ‘stablecoin’ slump prompts wider collapse
Crypto’s plummet tests the durability of a hype-driven industry
My take from May 2021:
https://thehill.com/opinion/finance/554998-is-bitcoin-the-future-of-money
“If not the future of money, can we make a case for Bitcoin as digital gold? Proponents argue that since Bitcoin, by design, is limited to a maximum of 21 million units, it can act as a stable store of value. Given its short history and its intangible nature, it is unclear that Bitcoin offers a true alternative to traditional gold. Gold has a long history as a medium of exchange, and the yellow metal has impressive physical properties that have caused humans to value it highly for thousands of years. Even today, many societies widely use gold for jewelry and ceremonial purposes. Additionally, from a financial standpoint, Bitcoin is currently too correlated with risky assets to act as an effective inflation hedge”. 

Related: 
Have misguided policies led to recent asset bubbles and boom-bust cycles?