Charles Hoskinson of Cardano (ADA) on the Current State of Cryptocurrency Market

Charles Hoskinson Musings:  I have been in this space for a decade, and I remember Bitcoin before it was a dollar.  And, then going up to 30 and then down to 4 then to 250 then to 80 then to 1200 then down to 250 again, then up to 20,000 down to 4,000, then to 64,000 and now we are in the 30s.

And, I remember all the events, the collapse of Mt. Gox.  All the various interesting ventures through out the years like Master Coins and Color Coins and a litany of other things and concerns.  No matter where I go and what I do, it always amazes me that there is this constant rhyming of the attitude– the old guards we have seen everything twice.  Just to make sure we did not miss anything.

The new people, the minute that something occurs like for example the collapse of the stable coin or the collapse of the Bitconnect – then they say Oh my God this is the end of crypto. Everything is over.  We are all going to die.  The markets are over.  The dream is gone.

You know what is happening right now is there is over 300 trillion dollars of institutional money floating around the world looking for a home.  Last 20 years in particular, there has been an hyper acceleration in the printing of money. American went from 4 and a half trillion dollars in national debt to a surplus to over a 30 trillion dollars. And, the prospects of the 3% interest rate it cost you trillion dollars a year just to service your debt. This is not healthy.  The world economy is not healthy.

Now, there is the biggest division ever between the retail investor and the institutional investor. The institutional investor, they have basically a mandate to go and push somehow with their trillions of dollars in management to bring in 10 to 15% return. Now, 10 to 15% return on top of inflation is 20% They are doing all kinds of murky business and shenanigans.

Why is it that your homes are getting expensive? Well, because the black rocks of the world and the massive private funds of the world are going and buying regular everyday 3 bath and 3 bed homes through aggregators. And when you wake up you see a 250,000 become half a million dollar home or 750 million dollar home, can you afford to buy it – no because we just don’t track with that.

It is good investment for them, it is good hedge at the moment for inflation, but it is not permanent.  That is in 2 years we saw the greatest wealth transfer in human history from the poor to the rich. And, now the rich are admitting that all they did over the past 2 years were not necessary, but they don’t give the money back.

The point of cryptocurrencies and blockchain technology has always been a different option than the dystopian future that is being offered to us where we will own nothing and we will be happy. The point is we get our freedom back, our liberty back – that is what we are seeking. Yet people are trying to babble on and on about the current state of the markets, which are caused by manipulation and outsiders. Think about it. More of the global economy will run on our system that is where we are going.

Community Reaction:  Don’t believe cryptobois understand how many attack vectors exist in cryptography and financial systems. Don’t believe they care because the game is get-rich quick, no matter who and what you break. 1000% convinced now first-principles approach is the only way forward.