Banking and the Collapse

The current banking system is a centralized financial system that is regulated by governments and central banks. It relies on traditional financial institutions such as banks, credit unions, and other financial institutions to manage and process financial transactions, including deposits, withdrawals, and lending.

On the other hand, crypto is a decentralized financial system that operates on a peer-to-peer network. It relies on blockchain technology to manage and process financial transactions, including buying and selling digital assets, transferring funds, and making payments. Cryptocurrencies, such as Bitcoin and Ethereum, are the most well-known examples of crypto, but there are many others.

One of the key differences between the two systems is the level of control and transparency. In the traditional banking system, financial transactions are processed by trusted intermediaries, and the system is subject to strict regulations and oversight. In contrast, the crypto system is designed to be transparent and decentralized, with no central authority or intermediary.

Another important difference is the level of risk. While the traditional banking system has been around for centuries and is generally considered stable and secure, the crypto system is relatively new and is still evolving. As a result, there are risks associated with investing in cryptocurrencies, including volatility, fraud, and cyber attacks.

Overall, the banking system and crypto are two distinct financial systems with different strengths and weaknesses. The choice between the two ultimately depends on individual needs, preferences, and risk tolerance.

The difference between the two:

1. Current Banking System and Crypto: The traditional banking system is a centralized system that is regulated by governments and financial institutions. It involves depositing money into a bank account, where it can earn interest and be accessed through debit or credit cards. Banks also offer loans, mortgages, and other financial products. On the other hand, cryptocurrency is a decentralized digital asset that is not controlled by any central authority. It uses blockchain technology to facilitate peer-to-peer transactions and is often seen as a more secure and private alternative to traditional banking. Cryptocurrencies can be bought and sold on cryptocurrency exchanges and can be used to purchase goods and services.

2. Current Banking and Crypto Scandals: There have been several notable scandals in both the traditional banking and cryptocurrency industries in recent years. These include money laundering scandals involving large banks such as HSBC and JPMorgan Chase, Libor manipulation scandals involving Barclays and Deutsche Bank, and the Wells Fargo fake accounts scandal. In the cryptocurrency industry, there have been scandals such as the PlusToken Ponzi scheme, the BitMEX legal action, the KuCoin hack, the Mt. Gox bankruptcy, and the Elon Musk and Dogecoin scandal. These scandals have highlighted the risks and challenges associated with both traditional banking and cryptocurrency, and have led to increased scrutiny and regulation of these industries.

Here are the current Banking "issue's"  I will use that word lightly:

1. HSBC Money Laundering Scandal: In 2020, leaked documents known as the FinCEN Files revealed that HSBC had allowed criminals to move money around the world by not properly monitoring suspicious transactions. The bank was fined $1.9 billion in 2012 for similar offenses.

2. Wells Fargo Fake Accounts Scandal: In 2016, it was revealed that Wells Fargo employees had opened millions of fake bank and credit card accounts in order to meet sales targets. The bank was fined $185 million and its CEO resigned.

3. JPMorgan Chase Money Laundering Scandal: In 2019, JPMorgan Chase was fined $5.3 million for failing to report suspicious transactions related to Bernie Madoff's Ponzi scheme. The bank has also been fined for other money laundering violations in the past.

4. Libor Manipulation Scandal: Several large banks, including Barclays and Deutsche Bank, were fined billions of dollars for manipulating the London Interbank Offered Rate (Libor), a benchmark interest rate used to set the cost of borrowing around the world.

Housing crisis 2008:

The 2008 housing crisis and subsequent financial crisis had a significant impact on the US economy and cost Americans billions of dollars. It is difficult to estimate the exact cost, as the crisis had far-reaching effects that impacted many aspects of the economy and society. However, here are some of the estimated costs:

1. Housing Market Decline: The housing market decline was a major factor in the financial crisis, and it caused many Americans to lose their homes and suffer significant financial losses. According to estimates, the housing market decline resulted in $6 trillion in lost home equity.

2. Bank Failures: The financial crisis led to the failure of several large banks, including Lehman Brothers and Washington Mutual. The FDIC has estimated that the cost of these bank failures to the US government was around $36 billion.

3. TARP Bailouts: The Troubled Asset Relief Program (TARP) was a government program designed to bail out struggling banks and other financial institutions during the crisis. The total cost of TARP was around $700 billion.

4. Unemployment: The financial crisis led to a significant increase in unemployment, which resulted in lost wages and reduced economic output. The unemployment rate peaked at 10% in 2009 and remained above 8% for several years, costing Americans billions in lost income.

Overall, the 2008 housing crisis and financial crisis had a significant and long-lasting impact on the US economy and society, costing Americans billions of dollars in lost wealth, lost income, and government bailouts.

Number 1 should explain the amount lost completely tops anything with crypto.