Summary

The article discusses the potential demise of cryptocurrency due to factors like greed, materialism, and the community's focus on hype rather than utility, amidst a market crash and regulatory challenges.

Abstract

The author reflects on the recent downturn in the cryptocurrency market, attributing it to the pervasive greed and hedonism within the community, exemplified by the materialistic displays and scams prevalent at events like the Miami crypto conference. The piece argues that the crypto space is characterized by an echo chamber of buzzwords and a lack of genuine interest in the technology's utility or decentralization, with many participants driven by the allure of quick wealth rather than the transformative potential of the technology. The crash is seen not only as a result of external factors like government regulations and the China BTC mining ban but also as a self-inflicted outcome due to the community's own actions. The author predicts a significant shakeout in the crypto market, with most cryptocurrencies and NFTs losing value, and warns of the rise of centralized digital currencies by global superpowers. Despite the fear and uncertainty, the author remains invested in cryptocurrency, emphasizing the importance of understanding the fundamentals and resisting the hype.

Opinions

The author believes that the crypto community's focus on material wealth and status symbols contributed to its potential downfall.
The article suggests that the community is more interested in sounding intelligent and making money quickly than in the actual utility or decentralization aspects of cryptocurrencies.
Scammers and fraudulent activities, such as fake hardware wallets, are seen as a stain on the crypto industry.
The author admits to previously contributing to the hype but now calls for a focus on utility-driven projects and education.
There is skepticism about the long-term value of most cryptocurrencies and NFTs, with the prediction that many will become worthless.
The author expresses concern about the increasing toxicity in the crypto community and more stringent government regulations.
Despite the bearish outlook, the author maintains a personal bullish stance on cryptocurrency, advocating for investment based on research and understanding of the technology's fundamentals.

Bitcoin Is Dead: Everything You Need to Know During This Crash

Nobody’s laughing now

Greed killed cryptocurrency.

Greed, hedonism, and this banal sense of wanting to sound smart. What’s a good word for that? Oh yeah — stupidity.

Stupidity killed crypto.

I’m fresh off of Miami, a.k.a. the crypto capital of the world; and during my stay there I found all the problems that likely led to this (potential) bear market.

Scammers: I saw plenty of advertisements promising Bitcoin-bought yachts and hype-driven propaganda. It was sad. I also kept reading about fake hardware wallets that wire your money to Nigerian princes.
Hedonism/Materialism: As Charles Hoskinson pointed out in a recent Lex Fridman interview, “Everything is so commercial. Half of the vendors at the Bitcoin conference wear watches that cost half a million dollars covered in diamonds.” Materialism killed crypto.
Sesquipedalianism: Ironically, this is the word for trying to sound smart. The crypto community is full of sesquipedalianists. They use buzz words, laugh at bad jokes, and make lofty, imminently mockable claims about the future of Bitcoin.

Cryptocurrency Is Much Worse Than a Bubble

Crypto wasn’t in a bubble. It was in an echo chamber. The 2021 crypto community is built on materialism, gluttony, buzz-word virtue signaling, and price prediction videos with HEADLINES LIKE THIS.

I’m guilty of it too. It needs to stop.

No one is actually interested in utility or decentralization in crypto. We just want money! DeFi didn’t serve any purpose besides making this small esoteric community richer (and sounding smart).

What we really want is to drive our Lambos to the moon. Diamond hands baby! Apes stronger together!! Who cares if it's Bitcoin, Ethereum, Dogecoin, or CumRocket? When Lambo?!

Sure, I’d be remiss not to point out stringent government regulations and a BTC mining ban in China.

Ultimately, however, the crypto community brought this crash on themselves.

This Crash is Going into Earth’s Core

If you invested money into Bitcoin in 2021, you’d have made zero dollars. Most likely you would have lost money, actually. Let that sink in.

Over the past three months, Bitcoin plunged more than 40%.

Meanwhile, the S&P 500 is up 15% on the year. Google is up over 40%. GameStop is… well, let’s not even talk about how much that is up (add it to the Ark fund Cathie Wood).

“There’ll be millions and millions of cryptocurrencies and crypto-assets, just like there were millions and millions of websites. Most of them won’t work.” — Coinbase cofounder Fred Ehrsam

The cryptocurrency crash isn’t over. This is the start of something bigger. The big shakedown — or the next wave of cryptos losing all their value. 90% of NFTs will be useless. Most cryptocurrencies are going to zero. This is reality.

Moreover, there’s nothing stopping global superpowers from creating their own centralized cryptocurrencies. China’s already accomplished this with the Digital Yuan. Things will get worse before they get better.

For The First Time — I’m Scared

I’m not scared because ‘Bitcoin is dead.’ It isn’t.

Anyone who tells you otherwise is drugged up on hopium.

They hope Bitcoin dies so they can fuel their superiority complex. ‘I told you so,” they will say. Meanwhile, they ignore that the Federal Reserve printed 30% of U.S. dollars ever created and is primed for hyperinflation.

They’ll tell you to invest in gold, even though that didn’t work out to well in Romania during their inflation crisis.

However, the reason I’m scared, to use a cliche, is because things are always darkest before the dawn. The crypto community will get more toxic. Government bans are going to get worse. Scammers will get more creative.

A lot of people are going to lose a lot of money — but you don’t have to be one of them.

Save yourself. Invest in this

Invest in utility-driven projects. Invest in education. Become an autodidact. And never ever chase hype.

Maybe instead of buying more Bitcoin, buy a book on Bitcoin. Rather than pumping the price on Reddit, explain cryptocurrency to your family. If they don’t get it maybe it isn’t them — it’s you.

I once heard a mathematician say you do not understand calculus unless you can explain it to a child. Strive to become this kind of person.

Welcome to Bitcoin Hell

People invest in things they don’t understand. It’s human nature. All we want is a Lambo or any sort of instant gratification.

Investing used to be about prudence, now it's about becoming an overnight millionaire. As long as this is a prevailing narrative in cryptocurrency, the market will experience hell.

Hype = volatility. Volatility = hell.

But let’s zoom out and look at the big picture. Over the long term, crypto fundamentals haven’t changed.

Bitcoin is still the soundest money in existence. Ethereum is putting the internet back into the hands of the people through decentralization. And Cardano is bringing decentralized finance to third-world countries.

“Bull markets make you money, bear markets make you rich.” — Unknown

I’m holding on for dear life. And I’m more bullish than ever.

It’s because I invest in the fundamentals — not hype. “Bitcoin is dead!” Say it louder. Say it prouder. Fear makes it easier for us of whom have done the research to continue investing.

I’m not fucking leaving. The show goes on.

Ever since I was a child it was my dream to become a financial advisor. Unfortunately, it never came true. Therefore I am not a financial advisor and you should do your own research and not just listen to random people on the internet. Nothing contained in this publication should be construed as investment advice.

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