As I understand it:
SIVB does some payroll stuff, houses venture capital money, places bets on start up companies. Some of those bets went bad. Turns out they weren't so responsible with their cash. But don't worry!! All that betting is FDIC insured. So the taxpayers will take care of that! Sure there will be some ripples across the economy, but don't worry we'll pay most of that in taxes.
Silvergate facilitates crypto transactions, did not bet on crypto coins itself. It is NOT FDIC insured, you will never get a penny back, and it is hated by the government.
All the news was so FOCUSED on the crypto bank. So FOCUSED on it going bankrupt. So dialed into making Silvergate the awful bank, the hated bank. I think the media should focus on leaving crypto alone- we're not insured, we're not regulated, we're not backstopped, and we're not even plugged into the regular economy (nearly no spillover or contagion). There is no need to even talk about us. Focus on the real banks going bankrupt that are actually tied into the overall economy.
But they won't actually look into the big banks, and if you start seeing capital outflow from those big banks, they will have to liquidate their bonds. Bitcoin and crypto needs to stay out of politicians and the medias mouth until they make sure the REGULAR BANKS that can actually collapse the economy have their stability checked.
But I have a feeling you won't read about those banks until they've really taken a nose dive, instead you'll be fed negative awful bad crypto story after story. Because after all, Bitcoin was invented for this very moment. And if those banks suffer outflow that pours into Bitcoin, it's going to be an absolute catastrophe for the legacy system.
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