Assuming crypto is or becomes a systemic risk to the world economy, anyone predict what happens in the event of a crash?
I suspect bailing crypto speculators out will be relatively unpalatable.
I suspect bailing crypto speculators out will be relatively unpalatable.
Some Crypto people may believe that they are immune to the governments of the world but they really aren't.
Whoever can kick down your door has the ability to make some rules and especially after a significant economic crash rules will be demanded.
Since crypto doesn't do anything fundamentally new I predict that most of those rules will look like current financial laws "but on the blockchain".
That or the industry will just fizzle out once it turns out that you can't escape the society you are living in.
Bitcoin, for instance, merely reverts to a scarce accounting standard, like the gold standard, preventing the overburdening of future generations with interest payments incurred by the government, owed to the national bank.
E.g. https://www.nber.org/papers/w29396 points out that only 10% of bitcoin transactions are economically meaningful and only 2.5% do not involve an exchange.
Or digital goods (services). Which you can do without providing any real-world identification.