Crypto Crashes and Rallies Show Human Nature's Attraction to Risk
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Crypto had a disastrous 2023, with major exchanges like FTX collapsing amid fraud charges, wiping out billions in customer funds.
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However, crypto has bounced back recently, with Bitcoin doubling in price and speculative coins rallying again. Investors seem unable to resist the FOMO.
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The rise and fall of crypto echoes past financial frauds and bubbles - there's a long history of "get rich quick" schemes gone awry, from junk bonds to Ponzi schemes.
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Crypto founders like Sam Bankman-Fried have joined the rogues' gallery of infamous financial criminals depicted in courtroom sketches over the years.
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The psychology that draws people to crypto - greed, ambition, FOMO - is deeply human and unlikely to change over time, despite frauds and crashes. Crypto refuses to completely die.