Going Infinite Summary and Review | Michael Lewis
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Introduction
Going Infinite: The Rise and Fall of Sam Bankman-Fried by Michael Lewis is a book about the rise and fall of Sam Bankman-Fried, the founder and CEO of the cryptocurrency exchange FTX. Lewis tells the story of how Bankman-Fried built FTX into one of the largest cryptocurrency exchanges in the world, and how it all came crashing down in 2022.
Who This Book Is For
This book is for anyone who is interested in the rise and fall of cryptocurrency, or in the story of a young entrepreneur who lost it all. It is also a good book for anyone who wants to learn more about the world of finance and investing.
About Michael Lewis
Michael Lewis is a Pulitzer Prize-nominated author and journalist. He is known for his ability to write complex financial stories in a way that is both informative and engaging. Lewis’s other books include The Big Short, Moneyball, and The Undoing Project.
StoryShot 1: The Nerd
Michael Lewis begins Going Infinite by profiling Sam Bankman-Fried, the founder and CEO of the cryptocurrency exchange FTX. Lewis describes Bankman-Fried as a brilliant but socially awkward nerd who was obsessed with math and computers. Bankman-Fried attended MIT, where he studied physics and mathematics. After graduating from MIT, Bankman-Fried worked as a trader at Jane Street Capital, a quantitative trading firm.
Bankman-Fried became disillusioned with the traditional financial system, which he saw as unfair and inefficient. He believed that cryptocurrency could be used to create a more efficient and equitable financial system. In 2017, Bankman-Fried left Jane Street Capital to start his own cryptocurrency trading firm, Alameda Research.
StoryShot 2: The Exchange
In 2019, Bankman-Fried founded FTX, a cryptocurrency exchange. FTX quickly became one of the most popular cryptocurrency exchanges in the world. Bankman-Fried was able to attract investors and customers by offering a wide range of products and services, and by having a strong customer focus.
FTX was one of the first cryptocurrency exchanges to offer derivatives products, such as futures and options. FTX also offered a wide range of other products, such as margin trading, lending, and staking. FTX was also known for its low fees and its easy-to-use platform.
StoryShot 3: The Bull Run
In 2021, the cryptocurrency market experienced a major bull run. The prices of Bitcoin and other cryptocurrencies soared to new highs. FTX benefited from the bull run, and its revenue and profits grew rapidly.
The bull run was fueled by a number of factors, including the COVID-19 pandemic, which led to increased demand for digital assets. The bull run was also fueled by institutional investors, such as hedge funds and pension funds, which began to invest in cryptocurrency.
StoryShot 4: The Bubble
By the end of 2021, many experts were warning that the cryptocurrency market was in a bubble. They believed that the prices of cryptocurrencies were too high and that a crash was inevitable.
There were a number of signs that the cryptocurrency market was in a bubble. For example, the prices of cryptocurrencies were rising at a much faster rate than the underlying value of the assets. Additionally, there was a lot of speculation and hype in the cryptocurrency market.
StoryShot 5: The Crash
In 2022, the cryptocurrency market crashed. The prices of Bitcoin and other cryptocurrencies fell sharply. FTX was hit hard by the crash, and its revenue and profits plummeted.
The crash was caused by a number of factors, including the rising interest rates set by the US Federal Reserve. The crash also caused by the collapse of TerraUSD, a stablecoin that was pegged to the US dollar.
StoryShot 6: The Fall
In November 2022, FTX filed for bankruptcy. The company had lost billions of dollars in the market crash. Bankman-Fried resigned as CEO of FTX.
FTX’s bankruptcy was one of the largest bankruptcies in the history of the cryptocurrency industry. The bankruptcy also caused significant losses for FTX’s customers and investors.
Final Summary and Review of Going Infinite
Going Infinite is a fascinating story about the rise and fall of Sam Bankman-Fried and FTX. Lewis does a great job of explaining the complex world of cryptocurrency and the factors that led to FTX’s collapse.
The book is also a cautionary tale about the dangers of investing in new and untested technologies. Cryptocurrency is a new and volatile asset class, and investors should be careful before investing in it.
Overall, Going Infinite is a well-written and informative book. It is a must-read for anyone who is interested in the world of cryptocurrency or the story of Sam Bankman-Fried.
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