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Today in Focus

Understanding the cryptocurrency crash

Today in Focus

The Guardian

Daily News, News

4.65.7K Ratings

🗓️ 5 July 2022

⏱️ 31 minutes

🧾️ Download transcript

Summary

This year has been a disaster for many investors in cryptocurrencies. Alex Hern draws the parallels of the spreading panic in the new digital economy with the 2008 financial crisis. Help support our independent journalism at theguardian.com/infocus

Transcript

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0:00.0

This is the Guardian.

0:08.0

The crash in the valley of crypto currencies

0:10.2

has wiped out life savings,

0:12.4

knocked over billion dollar companies

0:14.7

and sent tremors through the digital economy.

0:17.4

But will Bitcoin bounce back?

0:26.8

It started off small.

0:28.3

You start with $100, $200,

0:31.2

then it starts going, soon you'll be investing

0:34.3

in a couple thousand,

0:35.4

then your investments worth a car,

0:37.5

and then your investment is worth a one-bed flat.

0:40.7

Alex Coe is one of the roughly two million people in Britain

0:44.0

who has bought into crypto currencies.

0:48.0

Unlike many of them,

0:49.2

he'd thought he'd struck a gold mine.

0:52.3

It was life-changing overnight.

0:55.0

Money that asset investors, stocks and shares,

0:57.1

you don't see that in a month,

0:59.3

you see that over decades,

1:01.2

but it happened overnight and it was incredible.

1:04.4

I was close to be able to quit my job.

...

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