Crypto created a toy financial system and had a toy financial crisis; in order to work in the long run, crypto must prove its real usefulness outside of finance
On Oct. 25, Bloomberg Businessweek published “The Crypto Story,” a cover-to-cover issue of the magazine that I wrote about what crypto is and what it all might mean.
“A cleverly designed exchange for trading magic beans will never get around the basic problem that the magic beans don't work, and people might stop believing in them.” https://www.bloomberg.com/... via @BW
🧵 I adore the clarity of writing in this article, but there's a logical contradiction in the conclusion. For the tokens to “mean something” —as Matt concludes— they need to have both: 1) Ties to the real-world economy 2) Subordination to the rule of law https://www.bloomberg.com/…
Crypto solves the problem of allowing anyone to mint their own currency, stocks or other financial instrument out of thin air. People have slowly realized this actually creates a new problem instead of solving an existing one. https://www.bloomberg.com/...
A few months ago @BW asked @matt_levine to write what became The Crypto Story. Maybe you noticed but then stuff happened! And so we're back with one more thing you should read—a postscript, if you will—about FTX, SBF and toy financial systems. https://www.bloomberg.com/...
The incentives behind tokens have led crypto astray. Time for a reboot of how entrepreneurs, developers and investors approach the space! — @matt_levine https://www.bloomberg.com/...