The Banking Crisis Might Be a Sign to Avoid Cryptocurrencies
Yes, you read the headline correctly. The turmoil in the banking sector over the past week, and the subsequent response by the U.S. government, is a perfect example of why investors should keep their money within the regulated monetary system and outside of the cryptocurrency ecosystem.
SVB Financial (NASDAQ: SIVB) was the parent company of Silicon Valley Bank, which just became the second largest financial institution to collapse in U.S. history. But the key takeaway is that depositors have been protected from incurring any losses, which is in stark contrast to the result for customers of collapsed cryptocurrency companies in the past.
Since the 2008 global financial crisis, the U.S. government -- in conjunction with regulators -- has tightened its grip on the financial system to prevent a repeat of that catastrophe. Banks and financial institutions have effectively been regulated out of taking extreme risks, especially with their customers' deposits.
Source Fool.com
