Co-Founder of Real Vision: Crypto Markets Are a New, Antifragile Financial System

Original title: "Real Vision Co-Founder: Encrypted Markets Are a New, Anti-Fragile Financial System That Won't Collapse, and Losses Won't Be Apportioned to Taxpayers"

What Doesn't Kill You Makes You Stronger——What Doesn't Kill You Makes You Stronger.

In the past two weeks, the encryption market has suffered an unprecedented crash, the price of Bitcoin has almost halved, and the market has wiped out 1.02 trillion US dollars in market value in a liquidation spree with up to 100 times leverage. With many coins down 70%, including unregulated lending operations, the Bitcoin fear/greed index is at its extreme.

Real Vision CEO: Institutions may have ended profit-taking: According to news on December 29, Real Vision CEO Raoul Pal believes that the recent fluctuations in Bitcoin prices are due to institutional sales to help support their year-end profits. Raoul Pal said that institutional profit-taking may have been the reason for the recent Bitcoin sell-off, but the sell-off may be complete for now. (Cointelegraph) [2021/12/29 8:11:41]

Raoul Pal, former hedge fund manager and co-founder of Real Vision, concluded in a tweet: For two weeks, the crypto market had a major VAR (value-at-risk stress) shock test and nothing happened.

X World Games expects to launch the NFT card game Dream Card 2.0 in the fourth quarter: On September 10th, the decentralized virtual game metaworld X World Games announced that it expects to launch the NFT card game DreamCard 2 in the fourth quarter of 2021. 0, Added new ways to play such as Avatar player custom avatar, weapon NFT and combined expedition. The team said that as of September 10, the total number of registered users of DreamCard, the first NFT card game released by it, exceeded 800,000, the average daily active-zce users (DAU) on 30 days exceeded 50,000, and the number of PvP battles in a single day reached 150 million times. [2021/9/10 23:15:42]

Leverage liquidation is offset by over-collateralization, no company failures, the Fed does not need to step in, Defi has not collapsed and continues to be close to normal, no daisy chains (daisy chains) collateral losses, no collateral pressure, stablecoins remain stable. Some exchanges were down for an hour or two, but no large losses occurred on exchanges, and no protocols failed. No one suffers endless losses, the system is not interrupted. It provides zero systemic risk to the wider financial world. The speculators lost money, that's all.

400 million USDT was transferred from Tether Treasury to an unknown address: Whale Alert data shows that at 21:56 on February 17, Beijing time, 400 million USDT was transferred from Tether Treasury to an unknown address beginning with TCTrwC, and the transaction hash was: 8f2edb3f68f1d77b2d290551a2746509f0bf21094d2c44fa44d77aa135a52f . [2021/2/17 17:24:44]

"This is something I first saw in cryptocurrencies in 2012," Pal said. "A new, anti-fragile (anti-fragile) financial system that doesn't collapse during times of stress, and in this case Here, ownership of assets is clear and losses are not apportioned to taxpayers. It’s been a significant two weeks for cryptocurrencies and the future of the financial system.”

Even if you hate cryptocurrencies, Pal's sentiments are not unreasonable. The entire cryptocurrency market has fallen sharply, but there is no/no need for regulators to step in, or provide funds for private companies.

In a traditional financial crisis, ordinary taxpayers are always the last to pay the bill.

After the financial crisis triggered by the bankruptcy of Lehman Brothers in 2008, the United States did not allow companies to bear social responsibilities, but instead asked society to bear the serious losses caused by the financial crisis. Public data shows that the U.S. federal government has purchased bonds on a large scale, injecting a total of 4.5 trillion U.S. dollars in six years. The European Union also launched a rescue plan in October 2008. The total amount of the British rescue package was nearly 700 billion U.S. dollars, and that of the euro zone exceeded 2.5 trillion U.S. dollars.

What happened to the crypto market in May? A chart published by analyst Plan B shows that Weak Hands bought 1 million bitcoins at $55,000-$60,000 in April, and then sold them at $30,000-$35,000 in the May panic Sell, the total loss is as high as 20 billion US dollars. And these bitcoins are now flowing into the hands of HODLer.

Weak Hands usually refer to investors who lack confidence in trading strategies, or lack the resources to execute trading strategies. Such investors are susceptible to market news. HODLer is a popular term in the encryption industry, representing a firm holder of currency, usually holding for a long time and not selling easily.

According to Weiss Crypto, the crypto affiliate of Weiss Ratings, there’s a reason why the recent correction was so good: It removed the Weak Hands and kept the bubble away from the cryptocurrency market. There are many indications that the parabolic trajectory of crypto assets is unsustainable, mainly due to the constant participation of newcomers. Markets become vulnerable when more and more members of the public participate. A large correction can fix this and bring the price action closer to the asset's true fundamentals.

Despite the huge correction, the cryptocurrency market remains "healthy," JPMorgan analyst Josh Younger wrote in his new research note. As institutional adoption increases, another bear cycle should be prevented.

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