"No government, no individual, no entity can just electronically print new Bitcoins"
Isn't quite right, you can mine new coins, it just takes significant effort/luck.
Either way it is the rarity that matters as you explain. The lesson from FTX doesn't seem to be specific to crypto in the same way the failure of a single bank doesn't tell you much about banking as a whole, or the crash of a particular stock tell you about stock markets as whole.
Rather it is something true of any financial product, that some are better than others, there will always be people hiding things or trying to rip you off, and their will always be exuberance that pushes values of some products way above their fundamentals and results in a crash.
You are exactly right that the deeper suspicion should always be of governments, and the plans for CBDCs are very alarming.
I get your point! My understanding is that Bitcoin is capped at 21,000. I don't know how many are already out there, but, yes, folks have to expend nontrivial energies "mining" outstanding Bitcoins.
If the current FTX manager is correct in saying the books were abysmal, we can expect to see our benefactor to politics, SBF might be headed to jail. The greater fools had no idea they were not investing in much of anything other then hype around a brilliant, corrupt new millionaire boy wonder. I am stunned that a teachers retirement fund placed bets on FTX. Apparently SBF in a moment of insanity took on Binance where it's astute manager smelled trouble and cashed out exposing the scheme.
I just wonder how much real money has been trashed along the way to easy riches created by financial engineering.
It doesn't invalidate your point but this:
"No government, no individual, no entity can just electronically print new Bitcoins"
Isn't quite right, you can mine new coins, it just takes significant effort/luck.
Either way it is the rarity that matters as you explain. The lesson from FTX doesn't seem to be specific to crypto in the same way the failure of a single bank doesn't tell you much about banking as a whole, or the crash of a particular stock tell you about stock markets as whole.
Rather it is something true of any financial product, that some are better than others, there will always be people hiding things or trying to rip you off, and their will always be exuberance that pushes values of some products way above their fundamentals and results in a crash.
You are exactly right that the deeper suspicion should always be of governments, and the plans for CBDCs are very alarming.
I get your point! My understanding is that Bitcoin is capped at 21,000. I don't know how many are already out there, but, yes, folks have to expend nontrivial energies "mining" outstanding Bitcoins.
If the current FTX manager is correct in saying the books were abysmal, we can expect to see our benefactor to politics, SBF might be headed to jail. The greater fools had no idea they were not investing in much of anything other then hype around a brilliant, corrupt new millionaire boy wonder. I am stunned that a teachers retirement fund placed bets on FTX. Apparently SBF in a moment of insanity took on Binance where it's astute manager smelled trouble and cashed out exposing the scheme.
I just wonder how much real money has been trashed along the way to easy riches created by financial engineering.