In this week’s episode of Bitcoin Bottom Line, hosts C.J. Wilson and Josh Olszewicz discuss the massive shake in the crypto industry. The pain we have been seeing since this summer is still in circulation with the latest casualty of the FTX blow up. SBF is a great example of what not to do. Many people were skeptical of the speed his enterprises were ramping up and how they were severely understaffed. Wilson explains, “if you have too fast of a rise and too much money being injected without too many rules being put into place, it results in many problems. According to Forbes, he took his investors’ money and made venture investments with other companies, which are not liquid. If you spend money in that manner, there is no possibility of getting it back if you need it.” Olszewicz states there is speculation “they had no accounting system or tax management team.” Everyone inside the space was blindsided by the FTX scandal.
Wilson and Olszewicz discuss how the market could be a factor in these scandals being brought to light. People thought of FTX as the central bank of crypto that can help bail you out, but it has been proven again that there is not one. Wilson suggests that “if you look at it from a roach mentality, how do I survive the apocalypse? You will end up being fine. The way to do that is to keep your head down and be humble. If you overextend yourself in this type of volatile state, you are going to lose your arm.” Olszewicz brings up, “there are no issues with the chain, and people are able to withdraw their funds. At the end of the day, there are issues still going on, but they are centralized exchange issues and not chain issues.” These are operating issues, not technical issues.
Wilson and Olszewicz discuss how the current state of the space is going to make everyone better Bitcoiners when this is over. Wilson states, “Bitcoin is like a sponge. You squeeze the sponge, and liquidity comes out, but you can see the absorption and how much capacity it really has when you put it back in the water. I think Bitcoin has the capacity to absorb all the tears, pain, and broken-hearted people.” Bitcoin is for everyone, and everyone is necessary for mass adoption. At the end of the day, there are still a lot of great things going on in the space.
Listen to the full episode for more!