To bring an end to the crypto winter and for the crypto sector, and America, to thrive for the long term, crypto must rise to the challenge posed by its fervent critics. These critics are actively working to undermine our viability.
The market cap of the cryptocurrency sector has dropped from over $2.4 trillion in May 2021 to, as we write, $1.09 trillion. More than half.
Adelle Nazarian is the chief executive officer of the American Blockchain PAC, and Alex Allaire is the chief executive officer of the American Blockchain Initiative.
The sector's adversaries do not deserve all the credit, or blame, for crypto's price implosion. Yet they aren’t the first to wage political war on the market capitalization of a rival economic sector.
They are delightedly using the price implosion cap as an opportunity to double down on their attacks.
Make no mistake. The crypto sector's adversaries are formidable.
To steal a meme: The Empire strikes back. Time for the return of the Jedi!
We must stand up for crypto in the public relations and policy arenas. We, the authors, are actively making, and call on others to make, the case for crypto. The case for crypto is immense, one of innovation and growing productivity – and the rising tide of equitable prosperity that accompanies that.
We must not and will not allow the enemies of progress to crush this historic wave of innovation.
Meanwhile, they try.
In an acidly critical piece in The Los Angeles Times Michael Hiltzik recently observed:
Meanwhile, Ben Schreckinger, at Politico, recently headlined "Bankers Revel in Crypto's Crash":
And consider the attacks by the likes of Bill Gates, Jr., who admitted in his book "The Road Ahead," that lost the web for Microsoft (MSFT) by believing that "the technology for 'killer applications' was inadequate to lure consumers to the Internet …"
Gates, driving in his chronic blind spot, recently accused crypto of being based in "the greater fool theory." Notoriously, Gates's bridge partner, billionaire investor Warren Buffett, called crypto "probably rat poison squared."
These attacks drew a blistering riposte from the never-bashful Peter Thiel against the "finance gerontocracy," calling Buffett the "sociopathic grandpa from Omaha."
That said, one blistering insult does not a crusade make.
No disrespect to Thiel: The best defense is a good offense. There's another perspective, one which seizes the moral high ground from crypto's critics. Consider the perspective of crypto's creators as well as its destroyers.
Ethereum’s co-inventor: Vitalik Buterin and his dad "Dima,” also a member of the cryptocenti, provided a very constructive perspective. Speaking with Fortune:
So, what’s really going on? Capitalism.
Capitalism was characterized by Joseph Schumpeter, one of its greatest theorists, as "creative destruction." Per economist Ricardo J. Caballero writing for MIT, this references "the incessant product and process innovation mechanism by which new production units replace outdated ones ... Over the long run, the process of creative destruction accounts for over 50% of productivity growth."
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Creative destruction, which makes the public as well as the innovators much better off, is not for the faint of heart. The flourishing of the blockchain sector is not, in the immortal words of Gen. Pete Worden, a "self-licking ice cream cone."
The Empire – legacy finance – strikes back? Cue John Williams.
Now we the Jedi – the guerrilla warriors of Crypto – return.