So Crypto is crashing! I don’t care!

Coinciding with a sharp drop in global stock markets, this collapse, not the first of its kind, showed again how the violent swings of a largely unregulated market warp the development of a transformative technology.

But as many know I am a believer in blockchain and see it as not so much as a get rich quick scheme/scam, but because of the promise the underlying technology possesses, particularly for human rights including privacy and data sovereignty.

So you say your bitcoin is tanking – I say, eh!

When the cryptocurrency market plunged 36 percent in a week in May, and the collapse was largely set off by the death spiral of a cryptocurrency system called Terra Luna, made up of the coin Luna and its associated stablecoin, TerraUSD. At one time it represented roughly 3 percent of the total crypto market. Fear spread throughout the exchanges, and with it came panic selling.

After the second crash, the cryptocurrency market was still worth in total nearly $1 trillion (about one-third of last November’s peak). Only a few of the 19,000 cryptocurrencies that have been created since 2009 are now worth billions. Most have failed. The crypto market is wildly volatile not because of cryptocurrency’s underlying technology, but because of the uneasy and often dangerously unstable junction between emerging technologies and regular money. Viewed from the long perspective of market history, this instability isn’t remotely new.

It reminds me of the late 1990s and early 2000s, internet stocks were a white-knuckle ride, just as crypto is now. Back then, too, scams & hucksterism were rampant, the atmosphere was like a tacky casino, but even as Napster et al flamed out, a revolution was taking place. Despite all the scamming and hype and crashing going on in the casino, real and lasting companies, publications and communities were built and thrived online as did the internet.

I am a keen student of history and am convinced that when the dusts settles there will be a better “system”: either a “web3” a “web5” “or a “pond based” whatever it is called the “plumbing” of some kind of iteration of a decentralized trustless internet will, like a techno phoenix rise from this latest crypto crash and that is good for us all.

If you or someone you know you wish to know more about the regulatory interface between Crypto privacy and human rights in Australia and Criminal and regulatory law visit our official Partners – AR LAW SERVICES: Master Migration & Regulatory Lawyers.

Leaders in Crypto privacy & blockchain Law

If you have issues regarding data and crypto privacy talk to us!

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