Crypto corruption and un-Stablecoins – Michael Roberts

“Cryptocurrencies are vulnerable to corruption, fraud and money laundering; and as private tokens, they function at wildly varying exchange rates to state-issued money.  As such, they will allow the large financial institutions to make huge profits with no visible gain in value for society.

“Bitcoins and other crypto currencies increasingly move in step with the prices of other forms of fictitious capital.  Recent studies and market analyses show that Bitcoin’s correlation with the S&P 500 has significantly increased over the past five years. Especially during macroeconomic crises—like COVID-19, inflation spikes, or monetary policy shifts—both assets have tended to move in tandem. For instance, the 30-day correlation between them has surpassed 70%, showing shared sensitivity to global risks and monetary decisions.

“As such, any future instability in financial markets and any significant downturn in the so-called ‘real economy’ will hit the crypto market and its ‘stable’ coins hard.”

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