{"id":208054,"date":"2022-12-21T14:03:50","date_gmt":"2022-12-21T13:03:50","guid":{"rendered":"http:\/\/sftarticles.wpenginepowered.com\/en\/?p=208054"},"modified":"2025-07-01T20:14:53","modified_gmt":"2025-07-02T03:14:53","slug":"crypto-cause-next-financial-crash","status":"publish","type":"post","link":"https:\/\/cms-articles.softonic.io\/en\/crypto-cause-next-financial-crash\/","title":{"rendered":"Is Crypto likely to Cause the Next Financial Crash?"},"content":{"rendered":"\n

India has made no secret of its position on cryptocurrency<\/a>. The nation believes crypto to be a dangerous bet and, according to its Reserve Bank\u2019s Governor, the likely cause of a future catastrophic financial event.\u00a0Does that mean apps like CoinBase<\/a> are the problem?<\/p>\n\n\n\n

Shaktikanta Das, the Governor of the Reserve Bank of India, has stated that he believes crypto to be a huge risk to the macroeconomic stability<\/strong> of the nation. In a room full of high-ranking executives in India\u2019s banking world, Das said that \u2018After the development of the last one year, including the latest episode surrounding FTX, I don\u2019t think we need to say anything more. Time has proven that crypto<\/a> isn\u2019t worth what it\u2019s worth today.\u2019\u00a0<\/p>\n\n\n\n

Das argues that the organic changes in the value of products<\/a> and services stem from the market, and determining value is the market\u2019s function. He asserts that crypto is dangerous because of its independence from the market. It is Das\u2019s position that crypto is a threat to economic stability because its value isn\u2019t determined by the market<\/strong>, which determines the value of other currencies. Instead, cryptocurrency is like an outsider that has the agency to determine its own value.\u00a0<\/p>\n\n\n\n

\"Is<\/figure><\/div>\n\n\n\n

\u2018Change in value in any so-called product is the function of the market. But unlike any other asset or product, our main concern with crypto is that it doesn\u2019t have any underlying whatsoever. I think crypto or private cryptocurrency <\/a>is a fashionable way<\/strong> of describing what is otherwise a 100% speculative activity.\u2019<\/p>\n\n\n\n

The core idea behind cryptocurrency was to create a way for people to transact without relying on pre-established financial systems. Crypto was designed to subvert existing financial systems and escape regulation.\u00a0<\/p>\n\n\n\n

\u2018They don\u2019t believe in the central bank; they don\u2019t believe in a regulated financial world<\/strong>. I\u2019m yet to hear a good argument about what public purpose it serves. It should be prohibited because if it is allowed to grow \u2026 say it\u2019s regulated and allowed to grow \u2026 please mark my words that the next financial crisis will come from private cryptocurrencies.\u2019 <\/p>\n\n\n\n

These concerns are not baseless. Crypto <\/a>does sometimes appear to be a ticking time bomb with the ability to wipe out vast swathes<\/strong> of the population, at least, financially. We need only look at the recent FTX scandal<\/a> to see how detrimental this situation can become at the drop of a hat. The biggest issue is that crypto is touted as a way for everyday citizens to get rich quickly. <\/p>\n\n\n\n

However, once these people have invested all their life\u2019s savings into a particular cryptocurrency<\/a>, what underlying principles prevent the currency from tanking in value or a broker from running off with all their cash? Nothing.\u00a0<\/p>\n\n\n\n

Crypto isn\u2019t grounded<\/a> in anything solid. It isn\u2019t backed by anything. At best, it\u2019s a risky investment opportunity, and at worst, it\u2019s a financial trap waiting to collapse.<\/p>\n","protected":false},"excerpt":{"rendered":"

India has made no secret of its position on cryptocurrency. The nation believes crypto to be a dangerous bet and, according to its Reserve Bank\u2019s Governor, the likely cause of a future catastrophic financial event.\u00a0Does that mean apps like CoinBase are the problem? Shaktikanta Das, the Governor of the Reserve Bank of India, has stated … Continue reading “Is Crypto likely to Cause the Next Financial Crash?”<\/span><\/a><\/p>\n","protected":false},"author":9222,"featured_media":208059,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","wpcf-pageviews":0},"categories":[1015],"tags":[3721],"usertag":[],"vertical":[],"content-category":[],"class_list":["post-208054","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-crypto"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/posts\/208054","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/users\/9222"}],"replies":[{"embeddable":true,"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/comments?post=208054"}],"version-history":[{"count":1,"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/posts\/208054\/revisions"}],"predecessor-version":[{"id":322732,"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/posts\/208054\/revisions\/322732"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/media\/208059"}],"wp:attachment":[{"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/media?parent=208054"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/categories?post=208054"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/tags?post=208054"},{"taxonomy":"usertag","embeddable":true,"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/usertag?post=208054"},{"taxonomy":"vertical","embeddable":true,"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/vertical?post=208054"},{"taxonomy":"content-category","embeddable":true,"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/content-category?post=208054"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}