TCNJ

4 The College of New Jersey Magazine CRYPTO 2.0 The crypto market remains volatile and difficult to navigate ("Crypto 101," spring 2022), so it is no wonder our readers had more questions for alumni experts Jeff Horowitz '90 and Dennis O'Connell '09. You asked, and again, they answered. Why is the crypto market falling at such a fast rate now? JH: Some of it is due to rising interest rates, and some is due to poor risk management and over-leveraged borrowing. If you look at all of the financial crises we have faced in the last 30 years, they all have had excess market leverage, and when they unwound, prices fell quickly. Have your opinions about the benefits of crypto to our economy changed in recent months in light of its value tanking? DO: Not at all. The crypto market will rebound and come out stronger, with more controls and, hopefully, more regu- lation to protect consumers. We learned a lot from this recent market correction, including that we are still in the bottom of the first inning of this long journey. Are you concerned about the effects of crypto on the environment? JH: Not really. While crypto mining — validating transactions on the Bitcoin blockchain — is electricity-intensive, we need to put it in perspective to all the servers used by the largest banks to maintain their customer ledgers around the globe. As crypto matures, the ecosystem will adapt and become more environmentally friendly. How do I invest in crypto, and what is the average amount needed to begin? DO: I tell people to invest 1% to 3% of their money in crypto. Only invest what you are comfortable losing. Just like investing in stocks, you need to do your own research. O'Connell Horowitz PETER MURPHY

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