There’s a beauty in the brutal efficiency that crypto has in flushing out systemic toxicity.
Overleverage, bad debt, inefficiency in the traditional markets are usually mitigated into soft landings and bailouts by central banks. Too big too fail is one of the most dangerous 🧵
concepts that they sold us as a pillar of the economy. We got here because so many horrible economic and social dynamics got normalized, and the damage gets kicked down the road. The rotten wound just festering and inflating the bubble, ‘till it’s inevitable gangrenous end. In
crypto the fall is fast and furious. Luna went to zero. Doesn’t work, it dies. We painfully learn and move on. “Contagion” got thrown around a lot for 3AC Celsius etc, but these where all human, centralized errors. And again, it perished fast and furious. Meanwhile, our core
protocols chugged along without a hitch: Curve, Uniswap, Aave, Balancer, Sushi just kept moving on without a glitch, max stresstest. As human greed and stupidity did it’s thing. No bailouts, no intervention. Just a wasteland of human mistakes. Crypto systems cleansed tehmselves
With speed and intensity, and a new cycle can start anew, faster and stronger than the previous one. As usual, every sidelined salty nocoiner has been yelling “I told you so” as their “serious investoooors” assets get crushed to smitherine just as much, without the bonus of that
system learning from it’s mistakes, compounding them on diseased infrastructure. Marching towards the worst recession we’ve seen in a century.
This is crypto. A hyperefficient, brutal, no fucks given economic, social, cultural experimental kitchen. Get on with the program,
learn and accept that, or gtfo. Trying to turn this into an overregulated, overtampered with digital copycat of what they call “the market” would be the death of it all.
@OGDfarmer
Funny how core protocols were unfazed, yet the more centralized, the more of a shitshow during this volatility. It’s almost like decentralization matters.