But I thought only crypto was risky? And that over-regulated bank sector was totally safe?
Imho, this is a great argument for the return of Free banking (including crypto) as we see time and again that regulations do not work. Fail early and fast, let the market innovate and pick its winners and losers.
Except in this case, when SVB fails their customers will get the vast majority of their money back as the FDIC liquidates all of SVB's assets. When FTX fell, nobody got squat.
... my guy what are you talking about. the regulations _saved_ the depositors. if the FDIC wasn't around the little guy would be getting screwed right now, as it is, the big guys are the ones taking the brunt of the damage. if this had been crypto it would *all* be gone and the little guy would be the one holding the bag
When a bank fails, it gets put into receivership and you get (some of) your money back. There's enormous protection working in your favor provided by the FDIC. When a crypto token enters free-fall, there's no one to stop the market, and no one to help you get your money back. It's gone.
Imho, this is a great argument for the return of Free banking (including crypto) as we see time and again that regulations do not work. Fail early and fast, let the market innovate and pick its winners and losers.