Crypto's Great Financial Crisis: Everything You Need To Know (So Far)

[@MoneyMacro]

Very happy to have one of the sources that I rely on, Morning Brew, be the sponsor of this video! Sign up for free here morningbrewdaily.com/mandm

[@gwho]

@@vardekpetrovic9716 "for the most case noone knew they were part of such an volatile market. " you actually believe this? literally everyone knows crypto is more volatile. maybe that's why you lost 1.2 million.

[@ArawnOfAnnwn]

@@gwho He means they didn't know where their funds were investing. Pension and retirement funds are supposed to be conservative with their investments, but it seems some weren't. The people using these funds don't micro-analyse where they put the money, just as customers of a bank don't check the banks financial reports. These are institutions that're taken to be safe precisely because they're meant to stay away from markets like crypto. It's the fund managers who betrayed that trust.

[@williamhatfield8935]

A far too complicated explanation of this speculative bubble called crypto which has zero lawful use and less value.

[@dennisbarnes9569]

Sam bank man fried not Sam fried bank man

[@user12122]

Binance is next

[@antoniohandel8332]

How do I really invest in bitcoin and make huge profits , i'm actually confused here, can someone please help me out

[@annienolen8175]

Same here, It's very confusing seeing so many people talk about the profits the make from there investment in bitcoin while I keep dipping from on win to a bigger loss

[@eliotbrown5977]

@@annienolen8175 Most time having knowledge or insight about a particular activity can as well be a pleasing exercise. I can boldly say that fx and bitcoin is one of the profitable money exchange services that elevates investors and their financial status.

[@helenmansfield3446]

@@eliotbrown5977 That's true most people today have been having a lot of failures in bitcoin because of poor orientation or bad experts

[@helenmansfield3446]

Bitcoin investment (fx) can be profitable and lucrative when it is approached as a business, but achieving a level of success is extremely difficult and can take a long time. It's a good idea to fine an expert of this form of investment prior to getting started with. As you can see, the market is open and operates 24 hours a day and almost seven days a week

[@victoriamellor2189]

@@annienolen8175 Hello!!, I will advise you find an expert around your vicinity to help you while you study the market. Fx investment is a process of which you have to understand these process before going into life trade

[@MoneyMacro]

Please ignore the Amazon crypto coin spam comments!

[@MoneyMacro]

And all other bot comments (I will try to delete them when I get back to a desktop computer)

[@mikebaker2436]

@@MoneyMacro Hey, maybe if crpto falls far enough, the bots will give us our comment section back. 🤣🤣🤣

[@DaBaSoftware]

Had to scroll a while to see this comment. Top comment is about AZ whatever numbers and letters with nearly as many likes as this vid within an hour. Hmm.

[@franklinhirsch1654]

Why did you pronounce it Sam Friedman-Bank? Lmao

[@DaBaSoftware]

@@franklinhirsch1654 because he's a fried man and fried his bank

[@caynebyron]

I love how Joeri refuses to get SBF's name right.

[@PutXi_Whipped]

Patrick Boyle is rubbing off on him

[@me0101001000]

@@PutXi_Whipped I'd love to see Patrick on his show again, cracking dry jokes at crypto bros

[@stefanfrankel8157]

I was wondering if that was intentional.

[@IBMboy]

he avoids invoking his spirit

[@me0101001000]

@@stefanfrankel8157 it was definitely intentional

[@Grubiantoll]

Imagine Warren Buffet, every decade getting these new kids telling him how they found a way to grow and harvest money trees

[@gabbar51ngh]

They would have been if they shifted all that money to a safe investment after making record profits. Instead they thought money train won't be having any stops.

[@kevinc8955]

@@gabbar51ngh what you’re describing is not investing. It’s musical chairs gambling.

[@gabbar51ngh]

@@kevinc8955 depending on the market some are indeed musical chairs. There's reason derivatives market was called financial weapons of mass destruction by Warren Buffett. Not everyone's a passive investor who just puts his money in index or mutual funds looking to get a bit more out of his savings. Numerous invested in these cryptos and pulled the money earlier so they are still enjoying it's profits. Any investment with high profits is potentially risky not just cryptos. You even see it in bond market when you realise high profit bonds are considered poor due to higher risk of default.

[@mam0lechinookclan607]

@@gabbar51ngh that is just a pull out scam, hot potato with way to much money

[@gabbar51ngh]

@@mam0lechinookclan607 They could have at least diversified it into some safer investments than just putting it all on crypto. It was a dumb investing decision by them irrespective of crypto involvement or not.

[@dogedogego]

somehow dogecoin was the most honest crypto this entire time… the value was always memes

[@tomlxyz]

In intention, maybe but eventually it got speculative

[@dogedogego]

@@tomlxyz still more honest as it was and still is pure “memetic” value

[@rockfire1669]

@@tomlxyzI mean technically he is not wrong with his statement. I never heard official doge ever take itself seriously and always banked on the meme value(don’t know it’s current state, only know as of like 1.5 years ago)

[@rockfire1669]

Only a technically tho, if you are the working class you should view doge coin as also doing it purposefully

[@kayakMike1000]

To the Moooooon!

[@PK-tt5kk]

And crypto bros used to say crypto will boom in a high inflation environment. 😂

[@kushalvora7682]

I mean it did go boom. Just not the kind of boom they were claiming.

[@jeffhicks8428]

crypto bros are even worse than gold bugs. They woud say it booms in any environment because they understand nothing. Crypto is a product of QE and ZIRP. It along with shitcos like Tesla are the poster children for massive zombie economy bubble misallocation of capital.

[@mikebaker2436]

When things collapse, what sound do they make? 😉

[@johnflatt1288]

I love how the logic is that people losing purchasing power via inflation will for some reason put their precious money in a volatile speculative asset. I mean the crypto market is propped up by these big players, but how will it ever recover if retail investors are poorer and have already been bitten by this rotten system already. Are they supposed to trust any of these scammers? And before somebody says cold wallet-that immediately turns off most retail investors who already barely understand it. These exchanges gave them easy access

[@LeadLeftLeon]

It did in 2021 when we saw all those price increases

[@mikebaker2436]

Missed opportunity: the hypothetical example should have been "Straight Arrow" vs "Broken Arrow" 🤣🤣🤣

[@krissp8712]

🤯 💥 Excessive leverage really does seem like a nuclear self own!

[@mikebaker2436]

@@krissp8712 Definitely radioactive.

[@oohhboy-funhouse]

John Woo wants his movie title back.

[@ryansutedjo6704]

Or skyrim's arrow to the knee

[@kdbadk]

Sham Bankrupt Fraud is the greatest mocking nickname I've ever heard.

[@steffen1405]

I thought it was 'Scam' 😅

[@Horendus123]

Since hearing a few days ago Iv been thinking the same thing. Its just genius. Scam/sham interchangeable in my books. Both perfect

[@franciscodanconia4324]

@@steffen1405sham does alliterate with Sam better. Almost sounds like Sean Connery saying his name.

[@taterkaze9428]

The bigger story isn't about debt, contagion, regulations, or SBF - it's all about Digital Ponzi Tulips.

[@ljragsandfeathers]

Hahahaha😂

[@001sander2]

Superb video! Also, Sam Bankman tried to bail out those other exchanges to prevent his FTT tokens from being liquidated.

[@WillyWanka]

... Proving he knew the fraud

[@otmanh]

Can you elaborate Please? I dont get it really 🙈

[@cdreid9999]

@@otmanh so ..this will sound insane. (Coffeezilla explains it better) Ftx created ftt and gave out FTT as colateral. This is insane. It means that if ftx drops in value at all it immediately begins a death spiral. This absolutely wouldnt be allowed in the financial markets and the company would be laughed off wall street

[@kettelbe]

@@cdreid9999 fucking regulationsssss

[@jmsjms296]

@@kettelbe Losing your mind?

[@schentler]

what is up with these elaborate crypto scams comment?

[@abrvalg321]

Joeri, could you, please, not mispronounce the names of the subjects in your videos? One of your greatest strength is how neutral you are. And such practise may take that away.

[@krnsk563]

That ending/blooper was absolute perfection.

[@GingerWritings]

Another part I don't see many people talking about is that FTX was partly exposed and the exposure boosted by a direct competitor (I think Binance). I think they thought they would get rid of a rival, but may well collapse the whole rotten business.

[@mikebaker2436]

Yes, It's clear that FTX was more lucky and crooked than smart. You are touching on a rarely understood aspect of business... that sometimes your competition is symbiotic and is actually keeping you afloat (sometimes unintentionally and sometimes intentionally).

[@SoulDuckling126]

Just like Boeing wouldn't shit on Airbus (or vice versa) even if that means more airplanes sold at the expense of their competitor, because it'll spread fear of their products.

[@tomlxyz]

@@mikebaker2436 when is that the case other than in finance?

[@toolegittoquit_001]

This isn't correct. CZ reached out to SBF several times because he knew something wasn't right. He only sold his (FTT) tokens after he received no response from SBF. The FTT tokens he sold were his own and he could sell them when he wanted. And do recall that Caroline offered to buy them all at $22.

[@mikebaker2436]

@@tomlxyz Probably the easiest example would be industrial symbiosis between complex multinational companies... where reducing competitor's marketshare in one industry, reduces supply or services for your own subsidiary.

[@Marksman3434]

Are you calling him "Friedman-Bank" as a joke? Or is that a mistake?

[@vakeeshrupan8696]

"friedman"😂

[@fraufuchs9555]

It's a mistake. He corrects it on the screen text when he mispronounces it for the first time.

[@mikebaker2436]

15:30 Seamless rhetorical recovery when not all the desk dominoes fall. A true professional presenter! 🤣

[@MoneyMacro]

Hahaha. It was unexpected. I'll admit

[@mikebaker2436]

@@MoneyMacro An amateur would have redone the take. Instead, we got more analogy and a later callback in the later knockdown. Legend. 🤣🤣🤣

[@mikebaker2436]

This is a good video (so far... still watching). It is contributing a neglected macro perspective to the current crypto problems.

[@jeffhicks8428]

Macro perspective is simple. Crypto is a ponzi scheme bubble which could only exist in a ZIRP world of endless monetary expansion. Fed policy is what enabled this to happen so perhaps the fed should continue to suck liquidity and raise rates until all crypto scum vanishes from this earth.

[@oiinahgiiusadurrybrahchuck7209]

Attributing*?

[@hankhillsnrrwurethra]

Bots are still bullish lol

[@GrandChessboard]

LOL, the only ones....

[@2Sor2Fig]

My old man worked in finance (banking and insurance), and I've always been annoyed at how often people who talk about markets misunderstand even the basic core concepts, or clearly exaggerate them for their own benefit. You're right often enough about the small things that I'm willing to trust you on the big things. I've watched 6-7 of your videos, but now you've convinced me. All I have to give is my like and subscribe. Dankie.

[@pratheekcr]

Your ability to do research, condense the info, make it presentable and easy to understand is top notch 👏👏

[@neofett9]

He didn’t even get Sam Bankman-Fried’s name right

[@ljragsandfeathers]

@@neofett9 I get the feeling it was on purpose 😂

[@Nohandleentered]

If it’s crypto wouldn’t it be a de-financial crises 😂 🥁 Also, bots are going crazy in the chat 🤖

[@PutXi_Whipped]

The return *OF* your money is more important than the return *ON* your money. - Will Rogers

[@deeptoot1453]

Warren buffet rule #1 "don't lose money" Rule #2 "Don't lose money"

[@robin1987100]

friedman bank :p

[@MoneyMacro]

sam-man fried

[@alezacrespublik6655]

@@MoneyMacro An unexpected yet accurate name for the guy, seeing his situation now.

[@midasderrek]

Sam the Bank-man is Fried

[@arthurlasido258]

Shady-mad Fraud

[@robin1987100]

​@@MoneyMacro Him, the one with the crazy hair.

[@AcuraAddicted]

Yep, leverage (which is basically GREED) pretty much destroyed the crypto industry. It was a bad idea to utilize the stock market strategies to crypto.

[@8eight104]

I’ve always been skeptical of crypto, but it seems like it would work better if people actually treated it like currency. It isn’t and I believe that’s why it’s so unstable.

[@floxy20]

@@8eight104 It's the official currency of El Salvador and yet people are smart enough not to use it and prefer U.S. dollars.

[@fredrikhelland8194]

@@floxy20 for most practical purposes, El Salvador is not a real country though.

[@davec3974]

Leverage isn't a creation of people trading in the stock market. Most people use leverage to buy a house, and that also pushes up prices.

[@PlayedbyInstinct]

The greed/fear cycle is an inherent feature of any speculative environment, not just stocks or in this case crypto.

[@CLObandit]

Super grateful for these videos. I feel like I’m in an Ivy League economics class every time I watch

[@foute90s]

Hey Jouri, Thank you for this clear video. Every now and then I have a discussion with some friends on the term "crypto investment". I personally am of the opinion that you can't invest in crypto by buying crypto currencies but can only speculate.- It is possible to invest in crypto currencies by buying shares in a company that exploits the technology behind the currency. Although I'm not sure what the business model of those currencies would be. My main argument is that currencies don't produce value on its own, hence you can only speculate on the demand. Ofcourse the service of transferring value does provide some value, but that is not what you are doing when you buy currencies by expecting the price to go up. Maybe this question would fit well into a future video on "the value of crypto currencies".

[@epgui]

His name is Joeri.

[@richteffekt]

I think you're making sense and bring one or two key points. A currency, and that of course is a bit to the discretion of the banks and central bank in an economy, should have an opposite, active asset. Like in a ledger where on one side there is the house you want to build and on the other, there is what you owe the bank for it (and the bank has a similar ledger where they exchange similar debt requests with the central bank). Neither your house nor the cash yet exist but once you and the bank shake on it you owe them a house in return for 1 house-equivalent paid to you in cash. Or you repay them - most people prefer that option as they get to keep the house. I continually fail to discover however what the asset side of crypto would be. I mean Satoshi isn't going to give me guaranteed Dollar for my Bitcoin, so there's no debt. Needless to say there's no house. They burn a lot of energy, I hear, making the actual tokens but that's literally up in smoke and of no real future use. From a capital perspective I'd therefore agree - I'd also find it impossible to see how to "invest" in crypto. Maybe we're looking at it wrong and a future video WILL explain it?

[@rileynicholson2322]

Companies that exploit the technology would be something like graphics card companies that sell to crypto miners. Or even energy companies supplying electricity to mining operations. Unfortunately both still risk losing a lot of demand if they aren't diversified to wider markets and crypto collapses.

[@oiinahgiiusadurrybrahchuck7209]

@@richteffekt I think it could be suggested that the “invest” part of crypto, from a typical perspective, is the expectation that crypto’s utility as a currency will be recognised more and more, and increasingly adopted, which creates a demand, where the scarcity mechanism then limits supply, which then will drive up value, providing early adopters with wealth increase. The issue arises in that cryptography is not necessarily as practical as preexisting fintech, particularly since the development of NPP. Realistically, if cryptocurrency can’t provide a practical edge over the newest traditional banking fintech, then the “investment” is nothing more than a pyramid scheme and an exercise in greater fool theory.

[@richteffekt]

@@oiinahgiiusadurrybrahchuck7209 thanks for highlighting a possible trajectory for investors who might be interested. Personally I don't think that utility is the key issue (and that of course is just my humble opinion). Instead crypto's utility seems to also define its most useful application. Single, non- repeating transactions in fringe or dodgy environments where the involved parties neither trust the marketplace nor each other and therefore prefer resorting to a more practical version of the precious metal coins of the past. Today's money on the other hand stores debt and is thus very different. And in most lasting business interactions, I think, debt and capital assets are the building blocks and a currency needs to map that. That is why I think that actual application of crypto- based transactions to be very much limited albeit it non-zero.

[@hanifarroisimukhlis5989]

Really good video! 👍 Though small nitpick. Unlike Celcius, FTX did NOT offer high interest loan. What they do is leveraging using funds that were not supposed to be leveraged. This means FTX could get in full legal trouble (Celcius used the "unsecured loan" loophole).

[@IvarDaigon]

yes they did their product was called FTX Earn.. and even though some users were not using it. many were.

[@lonyo5377]

@@IvarDaigon per SBF, there was no way of separating deposited funds between the types of depositors so all funds were treated the same. This also meant people making withdrawal requests from a loaned pool were getting the money of non loaned depositors rather than taking a hit.

[@IvarDaigon]

@@lonyo5377 yep and that's one good reason why you should never give your tokens to an any company that engages in speculative trading unless you're willing to accept the risks because even if the tokens are held in separate, buckets the temptation is too great for the management to temporarily 'borrow' those funds in order to cover short term losses. As soon as your tokens are in a wallet that you yourself don't control there is always a risk of theft, loss or mismanagement. Crypto firms are not banks, they are not 'too big to fail' and they are not going to get any government bailouts if they collapse.

[@mikebaker2436]

My schadenfreude is real with this crisis. 😅🙈

[@fanglifen67]

I HAVE INCURRED SO MUCH LOSSES TRADING ON MY OWN...I TRADE WELL ON DEMO BUT I THINK THE REAL MARKET IS MANIPULATED... CAN ANYONE HELP ME OUT OR AT LEAST TELL ME WHAT I'M DOING WRONG ?

[@gordonoluka3015]

Same here, My portfolio has been going down the drain while I try trading,l just don't know what I do wrong

[@riarosario8904]

Trading with an expert is the best strategy for newbies and busy investors who have little or no time to monitor trade

[@tulumataman3233]

I strongly advise you against self trading, it's really dangerous and had brought so many investors down, you need someone with the knowledge and strategies, someone dedicated to the crypto currency market business, and I will strongly recommend expert, Mrs Karen Charles

[@alvinbolton6575]

@Son Ji-young You don't need to be shock because I'm also a huge beneficiary of expert Mrs Karen

[@yuliazelenko8267]

I stumbled upon one of her clients testimonies and decided to try her out...I'm Expecting my third cashout in 2days

[@nulnoh219]

The whole Crypto ecosystem is basically a Casino. BitCoin being the casino Chips, other sht coins the games. BitCoin's only utility is to buy in and out of the crypto system.

[@napoleonibonaparte7198]

I hate it when people call the ones who are able to make big bucks as “.geniuses”, especially through shoddy methods. Wealth is not intelligence.

[@KeithWhittingham]

A good analogy for what was going on in FTX/Alameda would be taking blood out of its left arm and injecting it into its right arm.

[@eduardblackbeard3913]

Sam Friedman Bank 😆

[@WikiTicky]

I'm interested in an sustainability/economic analysis of crypto platforms. Specifically, where does money come from, where does it go, who's paying for the coin ecosystem to keep running, who are the main benefactors cashing out, etc...

[@sidkings]

I find it hilarious some people didn't see this coming 🤣

[@cdreid9999]

Wait til tether tanks. Theyve used every lie and trick in the books to prop it up and theyre running out of tricks

[@jakw97]

Half of the financial world has money in crypto, people where making so much money did not care to question it. Many still don't

[@jojosthenewblack]

Lol! You keep calling him Friedman Bank and not Bankman Fried! 😂

[@UCXEO5L8xnaMJhtUsuNXhlmQ]

Woah you're telling me that deflationary currencies with no inherent value will collapse like a house of cards when the masses try to take their money out? Who could've seen this coming? I disagree with the idea that the contagion needs to be stopped; crypto as an industry deserves to die

[@brendahutson1173]

SBF caused a quite large disaster, how on earth ! ...Well Wall Street pitched so-called quality stocks with high profitability and low debt, as a kind of insurance against whatever the economy might throw at you. Quality stocks have underperformed the S&P500 this year, My $400k portfolio is down by approximately 20 %, any recommendations to scale up my ROI before retirement will be highly appreciated.

[@havisrobert4492]

It’s precisely at times like these that investors need to be on guard against the next certainty. You don’t have to act on every forecast, hence i will suggest you get yourself a financial-advisor that can provide you with entry and exit points on the shares/ETF you focus on.

[@kenfauteux7405]

Binance has dropped their staking rewards drastically as the bear market has tanked. That’s what helps keep them afloat. If bear market continues they may have to continue dropping those rates.

[@lokijordan]

If they can hang in there until the wind up to the Bitcoin halving, they'll do quite well.

[@heinaye3594]

Isn't SBF Sam Bankman Fried and NOT Sam Friedman Bank? I mean it's SBF, not SFB!!

[@brandodurham]

Loving watching all crypto ride down to it’s correct price of $0

[@h2489-m2l]

Agreed! There will be efficiencies from the technology but they seem to be small. The financial markets are pretty efficient anyway.

[@ryansutedjo6704]

Negative... Because all electricity wasted to to "mine" a.k.a solving useless calculations

[@DanHaiduc]

@@ryansutedjo6704 The cost of mining is comparable to the cost of inflation of fiat currency.

[@UsoundsGermany]

More like 5-10$ as the storage tech at least is of some (real) value

[@adam346]

a couple I know told me they keep about 20% of their savings in crypto and were hedging more and more each year.. this was in 2019... I haven't talked to them recently... they seem to be ignoring my calls.

[@NickVetter]

I had money in blockfi and after celsius, I immediately took it all out. Got pretty lucky.

[@mikebaker2436]

Yeah, that's how contagious bankruns work. 😋

[@NickVetter]

@@mikebaker2436 good

[@ryansutedjo6704]

Good for you

[@DanHaiduc]

Thank you for this amazing, clear, and humorous explanation! I loved the "another big round of direct contagion" at 16:27!

[@junkequation]

Kind of funny that you're doing this in depth analysis and didn't even get sam bankman fried's name right

[@mathewperring]

I don't understand how lending a crypto currency is a good idea. What can you buy with a crypto currency that you can't buy with ordinary money? And if crypto is totally awesome and it value will keep going up, why would you borrow it onky to have give it back later but will be payed back with it being worth more, which does not seem like a good idea when other currencies exist. So the only good way would be to borrow it sell it and then buy it back later when it costs less money basically you are shorting the crypto. A bank lending its own crypto to be shorted seems like a really bad plan. Did no one think this through before they started doing it? That took me 5 minutes to figure out and I am no genius.

[@chimera7441]

You have a real talent for explaining difficult concepts in a clear and understandable way.

[@madjunac]

I consider myself to be a little above the average (when speaking of intelligence). But I really lose grasp after only a few sentences when I watch videos like this. I think that everyone one of them lack the concept of initial logic. And afterwards, everything is tangled up in economic slang. I'm convinced that everyone with the thorough knowledge of the theme speaking about can explain (that particular theme) in a few simple sentences. I've never heard anyone speaking about Crypto in a plain English. Behind Crypto is a simple addition and subtraction mathematics. It looks like I'll have to wait for someone to dumb it down for me

[@jmsjms296]

@@madjunac If you're so smart, why not try harder and get your own synthesis done?

[@madjunac]

@@jmsjms296 what a cool tip...

[@RayMak]

Another crisis may further devalue crypto

[@danielthen4415]

Very very good south african country by 2026 in the world class and luxury cities....

[@keosan]

Come for the crypto news, stay for you waving around those imaginary orbs ❤️

[@Crisis-xw3wg]

When the market is up everybody and their dog say “ it’s going to the moon “ When the market is down “ everybody and their dog say it’s going to Zero”

[@cartersal1693]

You should come up with new ways to mess up SBF’s name if he comes up in future videos. Hearing it screwed up was unreasonably funny

[@RestoreSanityFear]

Two corrections necessary in the first 3.5 minutes of the video isn't a good look. Please take the time to re-record

[@TC-KEREM]

Such a great and knowledgeable video.

[@DanielMatan]

thank you so very much for your in debt videos! one thing i did not quite understand is why you consider grayscale a hedge fund if all it did was storing investors money in different crypto funds such as gbtc using Coinbase custody. i mean if genesis goes down and so dcg as a result cant they just liquidate their shares in the fund without dissolving it? i dont see how dissolving can benefit someone unless if those funds where mishandled which i find hard to belive because unlike ftx grayscale funds are grantor trusts which are regulated to some degree.

[@jintarokensei3308]

Crypto value was always 0 anyway.

[@nils842]

crypto will not go to zero, crypto is the future

[@jintarokensei3308]

@@nils842 oh don't let me stop you from buying lol

[@mikebaker2436]

@@nils842 Crypto won't go to zero... but it also isn't the future of money.

[@pisasupayani]

@@jintarokensei3308 🤣🤣🤣

[@GhostOnTheHalfShell]

I like how the libertarian billionaires promised that tech funny money would go beyond fiat money, but nope.

[@ZeromuS_]

havent watched it all yet but THANK YOU I've been looking forward to your video on this knowing that you'd be taking a macro look at it :D Thank you so much Joeri!

[@mitotakjde9763]

I believe that FTX bailed out block-fi to save Alameda, as if block-fi filed for bankruptcy, the enormous loans to Alameda would be called, and Alameda didn't have the money for that, and also their collateral for that loan was FTT. Im curious how this plays out

[@rtqii]

Yep, for sure.

[@dansplain2393]

I think you have a maths error. Between the upside case study and the downside case study you’ve doubled the debt. In the downside case study it should be 25% debt not 50%

[@paulhofmann3798]

I don’t see a crisis wr to BTC? There is only a crisis for shitcoins and worth-less air tokens.

[@madeofnapalm]

- You crypto thing is just imaginary value. - No it's not! - Yes it is. - Oh man, it really is. If only we could have seen this coming

[@olgringold5142]

FTX only stopped the contagion because BlockFi and Voyager had billions in rehypothecated FTT collateral to dump, which would've taken out FTX along side them. They eventually went down anyway.

[@TheRumblewagon]

Now we discover the crypto bro CEOs were colluding on a chat to pump and dump cryptocurrencies. What else would you expect from an unregulated industry?

[@camiloguzman1801]

Is Crypto replicating Shadow Banking system or facing the same hurdlings that early 19-20th Century Banking.

[@zeddist7472]

Crypto reminds me a bit of the CDS boom, both had a valid reason for existence but greed ultimately got the best of them. I don’t think much of all the coins out there, as they are entirely built on the (speculative) hope that many consider them a store of value, but I do appreciate the digital innovation brought about, allowing for the tokenization (and trading) of illiquid and once inaccessible assets, such as real estate or private equity, thereby rendering them available to smaller investors, and I do believe that will be crypto’s legacy.

[@cdreid9999]

imho literally all crypro is, intentionally or not, a ponzi scheme.

[@TheCommonS3Nse]

I think another way to look at it is through the analysis of Mark Blyth in his book Austerity, although he doesn't actually address cryptocurrencies in that book. Neoliberalism was all about reducing government spending as a signal to investors that there will be lower tax rates in the future, spurring investment in the present. The problem with this theory is that it fails to recognize the role that government spending plays in cultivating economic activity. Therefore, after decades of neoliberal policies, we have starved our economies to the point that there is no new space for investment. Where in the past our governments would have spent huge sums on major projects like railroads and the Hoover Dam, they instead chose to pull money out of the economy. As a result, we don't get the productive benefits of these major projects 10-20 years down the road. No Hoover Dam means no Las Vegas and all that investment opportunity is lost for years to come. Now, we have economies that are tied to stagnant industries like oil and coal, with very little infrastructure in place to transition us into more profitable industries of the future like battery technology and chip manufacturing. This means that capital gets pushed out of productive development and into other asset classes such as real estate and cryptocurrency, causing bubbles. Maybe in a world where we had ample productive investment opportunities, crypto would have been valued for it's blockchain technology rather than it's speculative value. But sadly that is not the case.

[@Phlegethon]

Pump it up!!! Yea they’re all bankrupt now lol

[@andrewkelley9405]

take that, crypto bros. no sympathy from me.

[@DJToMyHits]

Imagine a pyramid scheme on roids. That is crypto.

[@FinEco-ct1yy]

This thing remind me of the South-Asian crisis, when the exchange rate of these countries fallen so bad that every one in the region couldn't solve a thing except of course Malaysia, south-Korea and Taiwan. So for both south-Korea and Taiwan It was technically a U.S saving, but for Malaysia things were different since they used the currency pegging. I'm not very well aware of the Crypto market but with a certain stabilization at least in the short term things can be lead to minimize the chain-rings effect along whit a big entrance to the fundamentalists to make some bridging toward the real economy. Afterall the more separation between Finance and real economy, The more destabilization finance will face.

[@inmm7961]

Hahaha love the blooper at the end!

[@GlutesEnjoyer]

Bro I love you I really do but please put your hands down

[@uydagcusdgfughfgsfggsifg753]

Tether is gonna be the biggest crash

[@jonnieinbangkok]

It's easy to get rich when you convince financial neophytes that an online Excell spreadsheet is some sort of new "digital currency" and worth tens of thousands of dollars a square.

[@coscinaippogrifo]

great job in refocusing the attention on what the real problem is!!!

[@statostheman]

I always been skeptical of crypto since it was interduce. When Daniel Nielsen said at 6:56 as his speech directly aimed at Warren Buffet, it an method been used here in Sweden so called "the ruler technique". Its like gaslighting but he wanted set a dominance, where he's always right when Warren is always wrong.

[@madcow3417]

Hahahaha! About time.

[@tomlxyz]

Funny how the whole crypto scene turns more and more like the banking system it was supposed to replace, even with bailouts now

[@mikebaker2436]

Wheels getting reinvented.

[@KeinNiemand]

Well FTX is not crypto it's a centrilised exchange. Not your private keys not your wallet.

[@SineN0mine3]

@@KeinNiemand get used to it, people who still don't understand crypto never will.

[@tomlxyz]

@@KeinNiemand you may not like it but that's where the majority of crypto goes

[@mitchellsuchner6898]

With all due respect, the fraud IS the biggest part of the FTX saga!

[@mikebaker2436]

The whole thing was structurally doomed with or without the fraud.

[@SineN0mine3]

@@mikebaker2436 The fact that it's failure was inevitable is part of what makes their business practices fraudulent.

[@mikebaker2436]

@@SineN0mine3 Being a bad business person isn't fraud. Making strategic blunders and getting overleveraged also isn't fraud. They often happen together, but are seperate things. Without fraud, FTX was doomed.

[@deeptoot1453]

Great video Joeri!

[@jeffreystorer4966]

Smoke filled bubbles for sale cheap

[@ScandalUK]

People will defend CZ and binance for doing the exact same thing as FTX cuz they won’t accept when they might be wrong.

[@noway8233]

Without the gpu minig on etherum ,etherium gone be a Centralize network(a few guys gone have more than 50%of all etherum, etherum will colapse and thats gone make the price of all coins go down, if the price go down , nobody gone mine , yesterday one of the bigest Bitcoin farm go bankrupsy

[@KeinNiemand]

It's just the the bear market of this crypto market cycle, bitcoins goes down 80-85% every cycle.

[@madcow3417]

The real value of crypto currency is the friends you made along the way 👍

[@myscreen2urs]

Some friends are lost in that journey🤔

[@PersimmonHurmo]

You don't trust anyone who challenges the wisdom of the oracle of Omaha.

[@EmilNicolaiePerhinschi]

"crypto industry" is a bit much ... maybe crypto criminal underground ? :-)

[@devilinthebelfry7292]

Love the videos, good luck against Argentina today.

[@MoneyMacro]

Hehe thanks. Watching right now

[@devilinthebelfry7292]

@@MoneyMacro So close, what an exciting game though.

[@lilytea3]

0:17: 💥 The video discusses the crypto industry's financial crisis, highlighting the role of speculation, debt, and contagion. 4:17: 💥 The video discusses the downfall of Three Arrow Capital and Celsius Network due to leverage and risky investments in the crypto market. 8:27: 📉 The video discusses the contagion effect in the crypto market and how it led to the downfall of certain institutions. 12:30: 💥 The downfall of FTX and its ripple effect on the crypto industry. 16:47: 📉 The video discusses the potential risks of crypto contagion and the need for a sector bailout to prevent further collapse. Recap by Tammy AI

[@92sanxez]

What is rotten has to go. Hope they dont bail anyone, just let them go broke, they deserve it.

[@vesiu5]

His name is Sam Bankman-Fried, not Sam Freedman-Bank. Ohhh. I see what you did there…

[@zachariea]

Very high quality video. I would've maybe made a bigger case for comparison between how commercial banks and crypto exchanges actually have a similar structure in terms of liquidity. To be clearer, I mean that commercial banks, just like crypto exchanges, are not expected to have 100% cash reserves. But this also highlights the danger since exchanges, unlike banks, have no regulation - ie, they can hold MUCH riskier positions...

[@mikebaker2436]

...and they lack government insurance, policy consolidations, and bailouts.

[@inversigmaUS]

Thanks a lot Joeri!

[@ezwa9979]

😯U 4got aboOt 2 other big factors.. 1- bitcoin will(probley is) using indirect contagion to lower everyone’s confidence in all other cryptos so customers bail & switch to bitcoin.. maybe that’ll work, although most all effort does the opposite - but staying on point - bitcoin or whomever else can use negative evaluations to diminish public confidence in many crypto co.s. 2- IF companies can show they are NOT a false stable type company, they can be a positive indirect self-contagion & restore their customer confidence.. all kinds of indirect contagiousness these days👋

[@travcollier]

Why does crypto contagion need to be stopped? Let it burn. Maybe the rest of the finance sector will learn a lesson, though probably not.

[@adaslesniak]

The stupid thing is that market is supporting such irresponsible behavior. In case of wild bets like crypto my gains are multiplied and my losses as well... except I am not responsible for debts made so I can loose only 100%, not 100% multiplied by leverage as in case of income. So: gains my, losses largely collateral, therefore game is skewed in favor of irresponsible players.

[@zhoudan4387]

Whoever speculates on borrowed money or is stupid or ignorant or in bad faith. Usually all three.. Besides, since 1929 crisis everyone should know better..

[@FPoP1911]

Stealing Patrick Boyl's look I see. jk, love your work, great video. particularly love your less bombastic more realistic look at macro economy crisis like China compared to more alarmist or click baity stuff. Hope to you see Partick MM and plain bagel cross over.

[@Mark-ug1so]

Thanks for bringing us up to speed with the whole crypto situation, but there's something that's been bugging me since i started watching the vid. Why do you look like an older version of Derek Muller from Veritasium??