Good comparison. And your point on the lack of regulation is the reason I compared the crypto meltdown to the housing bubble. Before the housing crash and before the government bailouts, mortgage lending was not regulated (and if it was, no where near to what it is now). There were a bunch of toxic MBS’s where borrowers had multiple mortgages they didn’t qualify for, coupled with predatory lending practices. Remember Lehman Brothers? They mass-liquidated their securities before the crash.
With crypto being on a global scale, not sure how this could be regulated. Even if there was 1 universal policy, different countries will have different thresholds and, unless it was one of those policies of “this is it – take it or leave it”, IMO I think it would be impossible for everyone to come to a meeting of the minds.
Fuckkk, my iPad just died after I wrote a goddanm novel in response.
Quick cliff notes. Direct crypto ownership can’t be regulated like you said, already have SEC regulated/ compliant bitcoin futures etf. Spot etf/index crypto fund investment is coming. It will be an indirect way to invest in crypto just like s&p 500 is for stocks and will open up the space to a shitton more “regular” investment. This is the recovery imo that will happen for crypto but it will take years maybe decades for the valuations to get back to their pre crash peaks.
Big us banks already offer custodial crypto accounts for direct ownership short of cold storage. They are no more safe than the online exchanges that have gone kaput etc except they are professionally managed more established. These type of accounts will eventually receive SEC blessing ie SIPC coverage to encourage investment.
Direct crypto ownership will never be regulated or protected just like any other commodity. If you own physical gold (equivalent to cold storage) you’re on your own and it’s super cumbersome and risky- theft, loss, misplacement, unable to remember where you put it etc.
I had a better answer but Fvck it.
Thanks man! I'll take a look