Crypto’s Inherent Debasement Proven as 20,000 Threshold Crossed

News today of there now being more than 20,000 crypto “currencies” is precisely the bad news the nascent crypto universe doesn’t need right now.

Far from demonstrating popular adoption of the concept, this single headline provides unequivocal proof that crypto, as a would-be currency, is many times more debaseable than even Zimbabwean dollars circa 2008.

The rate of monetary inflation hit an unprecedented rate of “89.7 sextillion percent year-on-year in mid-November 2008”, according to Wikipedia.

The 20,000 crypto projects are not all geared toward becoming currencies; in fact, most are replicas of either Bitcoin or Ethereum or Tether and promote utility over monetary value.

For example, “Bolide”, one of the newest crypto projects launched, purports to provide 17% interest through “automated defi strategies”. The project trades at $0.02 per unit and claims to have 

US$2.77 million total capitalization.

The idea that a 2 cent unit could yield 17% defies logic, unless loan sharking is involved. The project website says it also has medium risk and high risk categories of defi strategies coming soon that will yield 26% and 40% Annual Percentage Yield (APY).

The prospect of a $2.8 million asset yielding 17% APY classifying itself as a “low risk” proposition is just one glaring example of how this unregulated landscape threatens investors who fall for the rosy marketing language.

And by this example, or the thousands of other ones among the 20,000 that are targeting investors the way a carnival huckster zeroes in on any innocent who sweeps their gaze curiously in his direction, we see that the entire crypto universe is really just one massive rug pull just waiting to happen.

There are zero barriers to entry for anyone wishing to launch their own crypto thing.

There are no regulations, no government oversight, no insurance (investors are categorized as ‘unsecured creditors’ in all cases), and no possible way for interested parties to verify any of the information proffered by these firms, short of analyzing the source code. So without significant computer programming skills, even rudimentary due diligence is impossible.

The proliferation of crypto is symptomatic of the decrepit state of human mental health, at the end of the day, and is embodied in the blind willingness to prefer virtual realities to actual realities. It has resulted in a widespread conviction that virtual life will be better than real life.

One could argue that this is the result of the unbridled expansion of the billionaire class, the minuscule proportion of human beings who have found themselves in possession of a tremendously disproportionate share of global wealth, and have, as a result, deemed themselves entitled to such by virtue of their self-perceived genius.

I can see a future that very much emulates the fate of the Russian Czar Nicholas Romanov and his entire family, who were executed by the rising Bolshevik power under the impetus of revolution driven by persistent wealth disparity in 1918.

Billionaires could easily find themselves in the crosshairs of disgruntled victims of poverty if the situation continues. 

History, after all, does not necessarily repeat itself exactly but often rhymes.

Original article: Crypto’s Inherent Debasement Proven as 20,000 Threshold Crossed

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