The Crypto Exchange Collapse is a Tip of the Iceberg
The recent FTX crypto exchange collapse is a nightmare.
Global crypto lovers are so sad when the news of FTX crypto exchange bankruptcy hits the headlines. People who lost their crypto assets are unhappy because they became literal brokes.
Money laundering has become an integral part of the investment sector. It is a truth since time immemorial when people didn't have even traditional fiat currencies. Then, they used to trade by exchanging metals and goods.
Government enforcement departments are trying to probe into the fraudulent crypto exchange. There is enough doubt whether they have the sufficient technological infrastructure to solve the crypto-crime.
Who is most affected by a crypto exchange scam?
When cryptocurrencies are stolen from a crypto exchange, all users are affected. Those people are more affected who are the common mass, and who invested most of their assets in cryptocurrencies.
Suppose there is a large-scale adoption of cryptocurrencies, and almost ninety percent of global citizens are heavily into cryptocurrency transactions.
The common mass will store their crypto assets in the popular crypto exchanges that are mostly centralized, i.e., with custodial crypto wallets.
When a large-scale crypto data breach or scam occurs, a very large population of global crypto adopters will be severely affected.
The big crypto players will not be affected because they have enough global resources to play with.
We, the common mass, who wholeheartedly dream that "crypto will one day make us rich" and invest our last penny into crypto, will be the most affected.
The digital economy has the potential to control citizens' earnings.
The world adopted digital finance for more than a couple of decades. Governments are also promoting digital payments because it is easier to track citizens' earnings and spending.
The digital economy was promoted to make life convenient, safer, and secure. But now, the digital world is exposed to numerous loopholes for digital and hybrid money laundering.
The cryptocurrency was invented as an alternative to traditional fiat currencies with more power in the hands of the users. Being decentralized, cryptocurrencies are uncontrollable by any central authority.
But, keeping the cryptocurrencies in bank-like centralized crypto exchanges reduces cryptocurrencies to quasi-controllable digital money by the evil players.
Legalizing a cryptocurrency by a national government opens up the possibility of controlling the legal tender, and taking it into their income taxing system.
The choice between cryptocurrencies and fiat poses a dilemma.
Cryptocurrency is first a fintech solution or product. The technology of cryptocurrencies is nascent and continually evolving.
There are plenty of teething problems in the cryptocurrency arena.
Whether to accept cryptocurrency as an investment tool is a burning question.
Whether cryptocurrency should compete with fiat currencies is another question.
The choice between cryptocurrencies and fiat currencies poses a complex dilemma.
I remember commenting on a fellow crypto blogger's article a few months ago.
The centralized crypto exchange fall is the tip of the iceberg.
Not all people suffer equally when the world economy collapses.
The rich suffer less than the middle class and the poor.
The poor middle class constitutes more than ninety percent of the global population.
I didn't think much when I wrote the comment three months ago. The language is simple, but there is a harsh truth. I reproduce it verbatim.
"The top one percent wealthiest population owns more than 50 percent of the world's resources. I read somewhere that the top 0.1 percent of cryptocurrency holders own more than 90 percent of global cryptocurrency assets. In the end, cryptos may not be able to eradicate totalitarianism. The common mass will (most probably) face similar (or more) discrimination in the crypto world than they face in the fiat world." - source: a comment by Unity.
Can we be sure that cryptocurrencies may eradicate totalitarianism?
Legalizing cryptocurrencies as official tender by governments may spoil the spirit of freedom, anonymity, and peer-to-peer crypto payments.
The fall of a centralized crypto exchange has got evidence of unknown problems. Slowly, a part of the truth MAY come to the public.
News sources also claim links between the crypto scam with a ruling political party and the election campaign.
The evolution of cryptocurrencies entangles the digital world economy with unpredictable complexities. The citizens are the guinipigs in the experiment.
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Anyway, we want to embrace the positive outcomes of the cryptocurrency evolution. Let's be alert and safeguard our digital identities across different channels over the Internet.
Strengthen your online passwords.
Protect your private keys and passwords.
Uninstall all unnecessary mobile apps.
If you disagree with any of the points, please share your views or add any new points in the comment section. I will be more than happy to reply to your comment.
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Unity (Debesh Choudhury)
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Nov 17, 2022
I had to read the article thrice and even screenshot some paragraphs for reference purposes. Thank alot sir, I have really learnt alot this week