Pondering if I should write something about FTX, I fell on this recently posted Nouriel Roubini's 7 Cs of crypto, which he states as:
Should we add:
- Credulous
- Careless
- Childlike
- ...
Yet all of these have positive roots:
- Privacy
- Liberty
- Freedom
- Independence
- Society
- Economy
- Entrepreneurs
- Optimism
- Adventurous
- Youth
- ...
We might call that first extended Roubini list the crypto-challenge list, and that second, the crypto-potential list.
A challenge is that most of us learn to appreciate the crypto-potential list before we learn how to avoid the crypto-challenge list. Ranting about the crypto-challenge list does not help. And in many cases, much experience is needed to develop strategies to address the crypto-challenge list.
A bigger challenge is that risk management is done by projecting past negative events into future possibilities. Part of the game of fraud is to recast the past into a different present, and to avoid risk management by doing so, as no past negative event exists of the presented product. Caveat emptor, buyer beware, as they say.