For subscribers
Commentary
Crypto crash and a question of gullibility
Sign up now: Get ST's newsletters delivered to your inbox
Cryptocurrencies play almost no role in economic transactions other than speculation in crypto markets themselves.
PHOTO: REUTERS
Paul Krugman
Follow topic:
(NYTIMES) - Two weeks ago, TerraUSD, a stablecoin - a system that was supposed to perform a lot like a conventional bank account but was backed only by a cryptocurrency called Luna - collapsed. Luna lost 97 per cent of its value over the course of just 24 hours, apparently destroying some investors' life savings.
The event shook the crypto world in general, but the truth is that this world was looking pretty shaky even before the Terra disaster. Bitcoin, the original cryptocurrency, peaked in November last year and has since declined by more than 50 per cent.
