Crypto winter highlights gold’s warming qualities

LONDON, Nov 25 (Reuters Breakingviews) – The crypto winter is bitterly cold. The frost set in earlier this year with the collapse of Terra, a digital token supposedly pegged to the U.S. dollar. The recent failure of Sam Bankman-Fried’s FTX exchange has further lowered the temperature. The aggregate market capitalisation of cryptocurrencies has shrunk by more than $2 trillion, a fall of some 70% from the peak, according to As institutional investors run for the hills, financial regulators are closing in. The inevitable question arises: do cryptocurrencies have a future? To which the answer is: not under anything resembling normal circumstances.

True believers haven’t lost faith. They point out that cryptocurrencies were originally intended to provide a decentralised alternative to government-issued fiat money, which didn’t require users to place their trust in intermediaries such as banks. Instead, transactions would be recorded on a distributed ledger. In fact, most dealing in cryptocurrencies ended up on centralised exchanges such as FTX. The opacity, leverage, illiquidity and shady dealings in this new financial world resembled the very worst of Wall…


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