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The number of fiat banks to crypto banks is in the realm of 10,000 to 1.

So yes a crypto bank could maybe cause a single fiat bank to fail but it would be isolated. And likely a very small bank.

The entire crypto industry could collapse tomorrow and there would be likely no systemic risk to the global financial system.



Indeed, not currently. The problem is where crypto will go after the next winter. Maybe FTX will have scared off the next batch of newcomers, but then again 2017 and people still were lured back again.


Difference now is that VCs have lost interest in the crypto space.

LPs are freaking out over what happened with FTX and wanting to limit their exposure and investors in general are increasingly dubious that crypto is capable of generating sustainable, highly profitable businesses.


Indeed, but I have no doubt they will be back yet again, when there's money to be made again.

It's been the same with each tech economic bust, but the VCs come back and offer money again. Time heals wounds.




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