You’ve likely heard all of the horror stories in the news about the swindlers of FTX and it’s not false. Cryptocurrency can be a very shady area to deal with for currency trading which is why it’s best to look at cryptocurrency as investments rather than alternative currency. Currency is generally a commodity or item that is traded for products and services, fees and taxes, and other things. Currency is also something that is generally standardized and cryptocurrencies have, literally, no standards and no oversight. But this is a good thing.
Cryptocurrency carries with ut a certain anonymity which in of itself is invaluable for most. As far as protecting your identity goes, it’s far better than cash. Cryptocurrency is also inflation-proof. Don’t listen to those out there talking about how the value drops when new GPUs (graphics cards) come out and more coin is created because they have no idea what they’re talking about. As more coin is created it becomes increasingly difficult to create more coin. So, the inflation rate stays near exactly the same year after year. What makes the value drop is people selling their coin in fear the price will drop because of the new GPUs. It works much like stocks. The more people that buy the cryptocurrency the more valuable it is and that value increases if there are people buying the currency faster than it can be created. Inversely, the value of the coin will drop if people buying don’t keep up with the creation of the cryptocurrency.
So what happened and why is it important? FTX started as a crypto exchange, which is a place or website people would go to in order to exchange cryptocurrencies for other cryptocurrencies or even cash. In order for any company to facilitate this they must have a bank account that supports those currencies they are buying and selling. In other words, if someone wants to convert their coins to cash, they better have the money sitting there for them to withdraw.
In order for FTX to promote their new exchange they created their own cryptocurrency called FTX. Above ground things seemed just fine but crypto experts started reading warnings over a year ago that under that facade, things didn’t make sense and couldn’t be solvent. These experts were folks like the founder of Bitcoin. But, to understand what is going on here, you have to take a deep look into the guy that is running the show at FTX, Sam Bankman-Fried.
Mr. Bankman-Fried started out as a no-body. His parents, university professors – one of which is an accounting professor, and those near them profess that the family practices altruism. Mr. Bankman-Fried started his company from nothing started selling his new cryptocurrency to market his exchange (FTX), and suddenly got really political. It’s not any surprise his parents, university professors, influenced his far-left communistic ideologies. Starting at the beginning of this previous election cycle of campaigning, Mr. Bankman-Fried showered the democratic party and its candidates with copious quantities of money while professing his support of abortion, global warming, and other far-left-wing agendas. All the while, he professed these beliefs as the savior of humanity.
Mr. Bankman-Friend was the 2022 2nd most doner to the Democratic Party, second only to George Soros.
It’s not hard to see where this money went that suddenly was found missing from the FTX coffers and it’s even clearer who did it the only question is, will there be consequences?
No matter Mr. Bankman-Fried’s political alignment, the question of consequence remains a top concern for the future of all cryptocurrencies which is why this case should be looked at very closely by anyone who invests in cryptocurrency. If Mr. Bankman-Fried goes without consequences, then cryptocurrencies will fail without the application of basic laws. If he is held accountable, it will be the best time to start investing.