<
https://theconversation.com/cryptocurrency-price-collapse-offers-hope-for-slowing-climate-change-heres-how-183143>
"Cryptocurrencies like bitcoin were meant to be used as digital cash. Instead,
they’ve become popular as speculative investments. As well as being
resource-intensive and inherently wasteful, cryptocurrencies are also
incredibly volatile. Prices for the largest cryptocurrencies, bitcoin and
ethereum, have both dropped by over 55% in six months, leading some to suggest
that regulation is needed to contain the turmoil.
Some are blaming sliding prices on one specific contagion, a collapsing
“stablecoin” called TerraUSD which is supposed to be pegged to the US dollar.
But the current cryptocurrency market crash is more likely a combination of
lots of factors.
For years, interest rates have been close to zero, making bank bonds and
treasury bills look boring as investments, while cryptocurrencies and digital
non-fungible tokens (or NFTs) linked to artwork, look appealing. However, the
US Federal Reserve and the Bank of England recently increased interest rates by
the largest amount since 2000.
Continuing COVID controls and Russia’s invasion of Ukraine have also sobered up
the markets. Bitcoin was designed to be indifferent towards governments and
banks, but investors generally aren’t. They’re cutting sources of risk from
their portfolios and dumping crypto."
Via Rixty Dixet.
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
