Bitcoin Has Become A Victim Of Its Own Success

Bitcoin got so popular with institutions and spawned so many scams that’s it’s crashing alongside them

indi.ca

--

Jon Schwarz on Twitter: “If you bought $1,000 of bitcoin the day Matt Damon’s “Fortune favors the brave!” commercial came out, it would now be worth $375.

Bitcoin was supposed to be a rebellion against traditional finance, but now it’s another asset class. It was supposed to cutout bankers and middlemen, but it’s just created new ones. It was supposed to be a fuck you to central bankers, but now it’s tethered to interest rates like everybody else.

In everything it set out to do, Bitcoin has been a failure, but it’s somehow been a success. They made money and that excuses everything else. But now the money is running out and the excuses are wearing thin. People went along with all the bullshit as long as it made money, but now it’s starting to smell.

Bitcoin is crashing faster than the investments it was supposed to hedge against. Bitcoin has spawned new financial crooks that are destabilizing it and everything else. In these two big ways, BitCoin has become a victim of its own success.

Traditional Finance

Bitcoin was supposed to be an escape from financial institutions. The first line of Satoshi Nakamoto’s white paper announces Bitcoin as:

A purely peer-to-peer version of electronic cash would allow online…

--

--

indi.ca

Indrajit (Indi) Samarajiva is a Sri Lankan writer. Follow me at www.indi.ca, or just email me at indi@indi.ca.