Crypto Crash Update: Bitcoin Bounce, Terra Revival
The Facts
Cryptocurrency markets trended higher on Tues. as alternative cryptocurrencies ("altcoins") followed a bounce in the price of Bitcoin.
Bitcoin, the largest cryptocurrency by market capitalization and the most liquid of crypto assets, jumped by over 7.5% on Mon.
The Spin
Narrative A
The collapse of TerraUSD is ultimately good news for crypto investors. It will spur legislative action by Congress to finally regulate the cryptocurrency space and offer greater protection and clarity to investors.
Narrative B
Cryptocurrencies and blockchain technology, paired with the growth of mobile and internet adoption, are tempering rising financial inequalities. The fact that the technology is decentralized is the main reason no existing financial institution or government owns or manages it, and all of these trends are leading to financial inclusion worldwide.
Cynical narrative
The crypto space is full of scams and cons. Some, like "rug pulls" are short-term and intentional. Others, like potentially Terra, are cases where the founder sincerely believes their own hype. Either way, it's not just founders who need to do some self-reflection, it's the big time investors who bought into the hype and helped draw in retail investors.