Crypto, a Lesson in America’s Decline

Eddie Zhao/Daily Nexus

How the mighty fall, and dramatically.

For the past few months, the major players in the cryptocurrency market, such as Bitcoin, Ethereum and Dogecoin have gone into free fall. Crypto has been constantly losing valuea trend that seems to have been exacerbated by the sudden disappearance of Earth (MOON) (now renamed “Terra Classic”). Terra Classic has fallen from around $80 in early May to less than a thousandth of a penny at the time of this writing.

LUNA creator Do Kwon hinted at it death spiral in May, when he commented on the oversaturation of the cryptocurrency market, stating that it would be fun to see these new emerging coins “die.” I guess he didn’t think his own currency would accompany such a group only a week later.

Kwon then led a quick attempt to resurrect his crypto as a new currency, MOON 2.0. It’s right away lost more than 80% of its starting market value. I think the market speaks for itself.

Unfortunately, the Dow Jones Industrial Average, NASDAQ Composite Index and the S&P500three of the most reliable markers of the health of the US stock market, have also seen almost constant losses in recent months, dipping deeper and deeper into the red.

Although many factors are at play, cryptocurrency and stock markets seem to have a terrible influence on each other. As one falls, the other also falls – the two play the ultimate game of chicken with each other. However, instead of driving their own car off a cliff, these savvy investors have their hands on the wheel of the entire US economy. A prospect which, logically, would devastate not only American citizens but also the world market. A funny way to dive into a new depression.

However, instead of driving their own car off a cliff, these savvy investors have their hands on the wheel of the entire US economy.

To get to the heart of this crypto-apocalypse, it must be said that these currencies rest on pillars of sand. Like any speculative market, money is built on trust. If someone trusts Ford Motor Co. to make reliable vehicles that sell, then Ford becomes a potentially worthwhile investment. However, Ford is a business — it has physical products, conducts research, develops technology, and has a profit margin. Crypto does not.

When an investment has absolutely no success markers and remains entirely speculative, then you need trust. Bitcoin costs as much as it does because people perceive it to be not only valuable but also trustworthy. From its height to $68,000 USD in November 2021, dropping to around $20,000 today, it is evident that investors have lost confidence.

So what is the lesson to be learned from all of this? Should it be considered as a re-reading of the story of Icarus? Are we watching a crypto billionaire once again fly too close to the sun to take his industry with it? Maybe. What I argue that American society should learn is this: Get out now.

The United States was producing. Its economy was once based on the physical world, making products that had utility and meaning. If its mindset as a society moving forward is to go deeper and deeper into the false promises of endless digital capitalism, it will fail. There can be no growth based on the whims of the dumbest investors this country has ever produced. You simply cannot base an economy on hope, much less on a currency.

As a young man, I don’t have much hope in my country right now. When the main way to get wealth is through digital monkeys and the latest scams™ is dominating the market, so I’ll be the first to throw in the towel and say it doesn’t work. When the only profitable investments left are not in physical products but in digital intuition, I don’t expect America’s unfettered capitalism to last.

For God’s sake let go of bitcoin billionaire dreams. The time has long passed.

Blake McQuilkin believes that the decline of the cryptocurrency market is a trend that will eventually continue.

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