Depression-like crashes inevitable without crypto controls: expert
— Demand, Reserve, Backstop, Closely watched, Monetise, Terra stablecoin collapse, 18 per cent, Difference, Depressionlike, Etf business — 1 min read
Bitcoin price fell below the closely watched $US20,000 per bitcoin level over the weekend, down more than 70 per cent from its all-time high set late last year. Much of the carnage stems from the suspension of withdrawals from a centralised lending platform called Celsius that partly modelled itself on a traditional investment bank, but without a depositor guarantee. Dr Low says Celsius’ collapse showed the dangers of opaque, backroom trading and mirrored the damage caused when deposit-taking institutions lend to each other in an unsecure way using excessive leverage. Unlike stock markets, falling crypto markets have no “circuit breakers” to halt sharp drops in asset prices, Dr Low likens this to the Great Depression in the 1930s. Source