Yes, the cryptocurrency crisis is much worse than the financial crisis – E24

It is important that NFTs are seen as consumption rather than something appropriate as staples of a savings portfolio.

In recent months, several million customers have lost their deposits to various crypto banks, and E24 writer Sophia Adampour writes that this is no worse than the financial crisis.

She uses Lehman Brothers as an example of an organization that has “mismanaged/stealed customer deposits”. Lehman was an investment bank and had no deposits from private clients. The company had deposits from hedge funds, but that was covered. Other banks in the US and the rest of the world also got through the financial crisis without depositors losing their money. In fact, the vast majority of banks ended up with profits even in 2008.

It is also a mild exaggeration to say that the financial crisis made the banking regulations right. The United States established its bank guarantee fund in 1933 and clients of Norwegian banks have not lost their bank deposits for at least the past 100 years.

Now, it was not the collapse of crypto banks that was the primary reason for my skepticism about cryptocurrency as an investment. Significantly more money was lost when cryptocurrency Terra collapsed and more customers lost their deposits when cryptocurrency lender Celsius collapsed. In addition, we have seen
The hackers managed to provide themselves with NOK 100 million per day from various cryptocurrencies. It is also ironic that the cryptocurrency crash came in a year when inflation was destroying traditional finance and where bitcoin and other cryptocurrencies were supposed to shine.

Adampour thinks I’m being negative when I refer to the value development of NFTs. While it still has the same NFT Festival Pass power, the average price achieved through NFT selling has dropped by ninety percent since the peak.

This does not mean that NFTs are history. Last week, Trump earned nearly fifty million kronor selling digital photos of himself as a superhero. This shows that it can still be profitable for companies or celebrities to develop NFTs that they can sell to their loyal followers. But for those who buy these NFTs, it is unlikely to be profitable. It is therefore important that NFTs be seen as consumption rather than something appropriate as staples of a savings portfolio.