Payment News
Volatility in Crypto Markets
Cryptocurrencies are in a strange place. There were 18,465 cryptocurrencies 1 as of March 2022, although perhaps only 10,363 are active. There are over 300 million users worldwide and more than 18,000 businesses now accept some form of crypto as payment.
Sounds good, but the recent collapse in TerraUSD, which is not meant to be able to happen, has been a big story alongside a major slide in the value of Bitcoin. At the same time non-fungible tokens (NFTs) have also been having a hard time. What is going on?
As Chris Skinner explained in a recent piece 2 referring to TerraUSD, ‘how could a cryptocurrency, using the technologies that are meant to create stability, drop from a market cap of $40 billion to $500 million overnight and, if that’s the case, could that happen to bitcoin and others? Is this market just a massive Ponzi scheme, or does it have substance?’
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