Assalaamu Alykum Zoyans,
I wanted to see what everyone’s thoughts are regarding crypto following the aftermath of the bankruptcy of FTX. I don’t think this is the end of all crypto because I still think there’s value in the technology, but I do hope it’s the end of many of these speculatory assets. I’m aware I’m more of a layman here, so my language might be off, but seeing a lot of these crypto products offering yields without knowing how they were making that money on the other side was definitely a bit of caution for me. I’m not even sure if that’s related to the downfall of FTX.
Curious to see hear from @M.Abdullah @SandwichOfEarl @Muslim_Bitcoiner @mkhan074 as well.
Hey Farhan, regarding Crypto - it’s a good practice to keep your crypto in “cold storage” rather than in these exchanges like Binance, FTX, or even Coinbase. I’m still a believer in Bitcoin and Ethereum, as it offers a use case which fiat currencies don’t have.
One should not think Bitcoin should go to zero because of the actions of these exchanges. Keep in mind, there were liquidity crisis with banks as well with the fiat monetary system we have. In my opinion, we are more likely to see currencies like Venezuelan Bolivar or Argentinian Peso become worthless than we are to see Bitcoin become worthless.
Surely, there are a lot of altcoins and stablecoins which will get exposed as fraud. I would not touch those with a 10 foot pole.
As for owning crypto and getting yields, it’s why I own $BTCC.b.to (Bitcoin ETF), thankfully it has options so you can sell puts and calls on that and it’s my only crypto exposure.
Bitcoin’s raison d’être is to eliminate the need to trust any central entities with your wealth. It is always sad to see people fall victim to trusting central entities, whether it be the traditional banking system or these crypto exchanges. Anytime friends and family express interest in Bitcoin, I gift them a hardware wallet such as Trezor or Ledger and teach them how to move Bitcoin from exchanges to the hardware wallet so that they are in complete control. Any bitcoin on exchanges should be seen as an IOU, not real bitcoin. It isn’t real bitcoin until you move it to a wallet you control. I encourage Muslims to avoid chasing yield, just treat bitcoin as a riba-free long term savings tool. Stay humble, and build your bitcoin stack gradually using a cost averaging method.
ws happening rn has happened before (Lehman’s Brother) and the only reason is over leveraged system built on top of cheap credit, when fed pulls liquidity all the euphoria comes down with it. totally makes sense now why the cryptocurriences were ripping higher. now that all the speculators (3AC,Celsius, Voyager, FTX…) are busted we are back to baseline… and cycle continues.
FTX scenerio is telling us again how important is decentralization, these centralized entities can never be trusted with user funds
blockchain is like farmland
bitcoins are tulip bulbs
nfts are wheat