Ponzi scheme-style bankruptcy will cause more bitcoin businesses to fail, but cryptocurrencies will continue to be a crucial tool for international money exchange. Joe Lonsdale, a co-founder of Palantir and investor stated:
“Overall, I think you’re going to see most things fail. The ecosystem’s various crypto lenders, crypto tokens, and other components constituted a Ponzi scheme that made no sense whatsoever.”
Lonsdale, who solely cited FTX, claimed that certain failed companies "have had a lot of corruption". He then added:
“Long term, there’s a nice component of crypto, but much of what we’ve seen in crypto over the last three, four, five years was a speculative bubble fueled by cheap money and a lot of these Ponzi scams.”
Lonsdale thinks that crypto-based technology will advance despite recent turbulence in the bitcoin markets. Lonsdale claims that the blockchain technology used in cryptocurrencies enables online money transfers without the use of conventional government or banking infrastructure, providing a novel and essential method of moving money around the world. He stated:
“It makes sense to have more decentralized power and to have something like Bitcoin, it’s helped individuals get money out of Russia, Venezuela, and China. It allows more autonomy for the financial system from extremely bad-acting governments.”
