Dominoes Falling
General objection to the rise of crypto skepticism. Tether — is the other shoe still to drop?
Boy, are we suckers for sensation. During Railway Mania in 1840s, one of the more interesting from a long list of times when men succumbed to madness and greed, more than 6,000 miles* of railroads were built in the space of 2 years, with tracks furiously criss-crossing England, as people rushed to invest in speculative companies set up to raise funds in a mad building rush. Everyone must have a piece of a railroad company, the new revolutionary technology that was going to make the world infinitely faster.
And it did! But first:
As soon as the newly formed companies began running the railroads, underutilized and at a loss, while at the same time the Bank of England increased interest rates (yes, a recurring theme), money started flowing out and the bubble burst.
There is some wonderful analogy that I cannot quite put my finger on, between the redundant rails of the 1840s and one too many blockchains of the 2020s.
Everyone Played a Bank
The crypto dominoes are falling, as the opaque lending relationships come to light, and the defaults spread from one crypto platform to another. Worse, there is this creeping feeling in…
