Why Crypto Will Crash Hard And Come Back Long
Ten days ago, the founder of $LUNA laughed and said “95% [of coins] are going to die. There’s also entertainment in watching companies die too.” Well, his coin cratered. YouTuber ksi said “my 3 million dollars worth of Luna is now worth a few $100.” Which is, like, boo-hoo millionaire, but many people are downright suicidal and that’s awful.
It’s easy to dunk on crypto as a dumb cult, but every religion is just an old cult. Crypto and NFTs are surely stupid and evil, but stock markets and art hoarding are stupid and evil too. They’re just so established that they look like religion, and we don’t question them.
In truth, the difference is not good vs. bad. It’s old vs. new. While crypto markets itself as revolutionary, it’s fundamentally competition for elite status. A different hierarchy, not its overthrow. First merchants displaced nobility, now geeks are taking their shot at the throne.
Hence you get massive concentrations of crypto holdings by a few people, and institutional investors and banks getting into it too. It’s like the Romans with the Christians. They condemned it as a cult, until they figured out ‘hey, put some bling on this thing and we can use it to rule.’
The Cult Of The Corporation
The more modern cult that became a religion is the corporation. The limited-liability corporation is an honestly batshit idea that Adam Smith said would inevitably lead to “negligence and profusion.” As Joel Bakan wrote:
People talk about how crypto is unregulated and has zero accountability, but that’s precisely what limited liability enshrines for corporations. There’s some bullshit about corporate responsibility, but who actually gets prosecuted? They literally get away with murder and destroying the globe.
It’s important to remember that ‘limited liability’ is made up as much as ‘decentralized finance’ or whatever. Just like crypto today, limited liability was also laughed at and opposed when it came out. As Bakan continues: