This is something I have been worried about since the time traditional financial sector started integrating with cryptosphere. They are going to send the prices higher at first and we can celebrate getting rich. All of this comes at the cost of control and erosion of decentralization. The worst part is that cryptosphere makes itself open to market manipulation from governments and crony capitalists.
The Worst Part is Passive Investing
There are several ways passive investing is done. All of them involve the investor not caring or even knowing about what they are investing into. Ultimately, a small number of traders or simple algorithms end up dictating the movements of the markets. Price discovery cease to be efficient leading the market to be divorced from fundamentals.
I consider all of these developments are building towards asking for a black swan event. The previous bull market crashed because of some centralized elements loosely connected to cryptosphere (FTX etc.). What if a similar event or straight up manipulation happen through the control of traditional financial system.
FTX Was Truly About Politics, Money Laundering and WWIII | This is What I Manged To Find About It
- Almost Certainly
- Highly Likely
- Somewhat Likely
- It Will Not Happen
- I'm Not Informed Enough To Answer
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