Taylor: What we can learn from the great crypto meltdown of 2022

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Taylor: What we can learn from the great crypto meltdown of 2022
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Michael Taylor shares insights on the evolution — and implosion — of cryptocurrency as...

untrackable by governments. It’s good, although I’m only halfway through the book. In my defense and as a warning, it’s 1,000 pages long.2008 white paper spelling out the creation of bitcoin

It is no small thing to solve the technological problems posed in “Cryptonomicon.” The blockchain technology envisioned by Satoshi solved a lot of it. Even though cryptocurrencies may be stuck in a rut at year-end 2022, we may soon live in a blockchain-enabled world. Certainly, tens of billions of dollars in venture capital have bet annually on this future for the past few years.

People can be hyped into a frenzy of buying something they do not understand, as long as they believe it will go up in value for some reason, or because other people will buy it, or for no reason at all; think the 1720 South Sea bubble and the 1999 dot-com bubble. Interest rate hikes act like a brick wall to halt inflation and speculation; think the 1982 Volcker-induced recession.

This resembles the apparent failures of communism. To true-believers, “true communism” has never been tried. Similarly, true believers insist that we need to double down on a purer form for true crypto to emerge and reach its fullest potential.

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