Some time ago I wrote about how I wished the crypto markets would do something interesting. I guess the Genie of the Lamp reads my blog. The big news is LUNA plummeting into the Earth at terminal velocity, creating a whirlpool effect that’s taking the rest of the market with it. Paper hands sell all they have because they didn’t do any research into the matter. Everything is terrible and the end of the world is nigh- but at least it’s not boring.
This is the future we chose when we signed up for crypto. We wanted our money in our hands, not on display in a glass box, as Jim Rickards puts it. If there is a bank run on fiat currency, the government can act as babysitter, freezing all the banks and markets to prevent a total collapse of an already fragile system. This is great news for the Regulars, who work 9-5 jobs, have a 401k, play ball without question, and know as much about money as a rabbit knows about flying a helicopter. That much government control definitely comes at a price. Political de-banking is a very real thing, for example.
I’ve talked to people who invest in crypto just for the ROI, and they don’t get it. They don’t understand that they aren’t buying stocks. When shit hits the fan like it did this week, they’re out. It’s such an alien thing to them to not have Daddy watching over their shoulder and making sure that they’re precious money is protected. I don’t trust Daddy, and I don’t want him touching my stuff. I can handle myself.
It’s painful, but very fascinating to watch my LUNA bag burn. Terra’s arbitrage incentive system was a revolutionary new idea that challenged the necessary evil of centralized stablecoins. It was certainly more appealing than relying on Good King Coinbase to keep USDC stable. Alas, it only worked until the next big bank run, then the whole thing came apart.
The LUNA crash reminds us all that the crypto world is nascent and experimental. Even one of the biggest coins in the world could drop to nothing overnight. Just think of all the billions that could have been saved if some higher power stepped in to freeze the markets at the first sign of a bank run. Then think of how the spirit of crypto would be lost if that were to happen. We came here to escape the fragile and broken financial system of central banks and baseless fiat currency, and that comes at a price. Despite the losses, I still think it’s worth the trade.
This article was first published on www.anarchocrypto.net, a website where I publish more crypto content like this- as well as comedy and whatever else I feel like writing.