MicroStrategy's Significant Bitcoin Impairment Losses May Mislead: Berenberg
Turkish Crypto Exchange Thodex CEO Faruk Özer Sentenced to 11,196 Years in Prison for Collapse
DeFi and Credit Risk
Cryptocurrency must meet the challenge provided by its ardent detractors if it is to put an end to the crypto winter and for the industry, as well as America, to prosper for the long term. These detractors are aggressively trying to make us unviable.
As of this writing, the market capitalization of the cryptocurrency industry is $1.09 trillion, down from approximately $2.4 trillion in May 2021. greater than 50%.
Not all of the credit or criticism for the collapse in cryptocurrency prices should be placed on the sector's adversaries. However, they are not the first to engage in political conflict over a competitor's economic sector's market capitalization.
They are excitedly intensifying their attacks as a result of the price implosion cap.
Don't be misled. The opposition in the crypto sector is strong.
To borrow a meme: The Empire responds. It's time for the Jedi to come back!
In terms of public relations and public policy, we must defend cryptocurrency. The authors are actively arguing for cryptocurrency and encouraging others to do the same. The argument for cryptocurrencies is strong, based on innovation, rising productivity, and the rising tide of fair wealth that follows.
The opponents of progress cannot and will not be allowed to stifle this important wave of invention.
They try in the interim.
26 experts
A group of 26 experts encouraged congressional leaders to take action earlier this month in an open letter to warn the public away from these "risky, defective, and unproven digital instruments," Michael Hiltzik said in a recent article for The Los Angeles Times. In the end, 1,700 scientists and technologists signed their letter, according to Stephen Diehl, a British engineer who is one of the organizers. "We vehemently disagree with the notion - pushed by those with a financial stake in the crypto-asset business - that these technologies represent a beneficial financial innovation," the authors said.
Ben Schreckinger recently wrote in Politico under the headline "Bankers Revel in Crypto's Crash": "Yesterday, when the Bank for International Settlements released its 115-page annual economic report, it devoted the final third to a comprehensive takedown of cryptocurrency and decentralized finance. The BIS, a global organization that serves as a bank for central banks and is also owned by central banks, is the most institutional of institutional players. The treatment of cryptocurrency in documents produced by the bank has changed recently from contemptuous to defensive.
And take into account the criticisms from people like Bill Gates, Jr., who acknowledged in his book "The Road Ahead" that Microsoft (MSFT) lost the web because he thought "the technology for 'killer applications' was inadequate to draw customers to the Internet."
Gates reportedly said that cryptocurrency was founded on "the greater fool idea" while driving in his infamous blind spot. Warren Buffett, a well-known businessman and Gates' bridge partner, infamously referred to cryptocurrency as "possibly rat poison squared."
Buffett was referred to as the "sociopathic grandpa from Omaha" by Peter Thiel in a scathing response against the "financial gerontocracy" in response to these charges.
Having said that, a crusade is not made by a single vicious remark.
With all due respect to Thiel, a strong attack is the best defense. There is an alternative viewpoint, one that takes the moral high ground from crypto's detractors. Think about both the creators and the destroyers of crypto.
The co-inventors of Ethereum, Vitalik Buterin and his father "Dima," who is also a member of the cryptocentri, offered a very helpful viewpoint. In an interview with Fortune, Vitalik stated, "In general, I believe that the collapse of the Luna [cryptocurrency] is in some ways one of these crucial, somewhat healthy times in crypto, reminding people that there are risks involved. You can't just create a system and magically assume that the worst case scenario won't ever occur. You must also worry about the fat tails and these truly rare circumstances; you cannot just worry about how interest rates will look in the near future. That realization, in my opinion, will eventually result in a more secure crypto ecosystem.
"
Dima: Many people lost a significant amount of money, making this a highly distressing occurrence. I'm hoping we won't just be saying, "Let's restrict." Please prohibit. We should stop this. There are many different effects, and we can draw lessons from all of that. However, instead of attempting to keep us safe, the teachings can continue to propel us forward.
What exactly is happening, then? Capitalism.
One of capitalism's most influential theorists, Joseph Schumpeter, defined capitalism as "creative destruction." This refers to "the constant product and process innovation mechanism by which new production units replace outdated ones... Approximately the long run, the process of creative destruction accounts for over 50% of productivity increase," according to economist Ricardo J. Caballero writing for MIT.
Creative destruction is not for the weak of heart, yet it benefits both the general public and innovators greatly. In the legendary words of Gen. Pete Worden, the booming blockchain industry is not a "self-licking ice cream cone."
The Empire, backed by legacy finance, responds? John Williams is played.
We, the Jedi, the Crypto guerilla fighters, are now returning.
