Let's be real. The internet is saturated with crypto hype. Lambos, early retirement, financial freedom – the list goes on. But beneath this breathtaking technology exterior finds an ugly truth that far too many people are happy to overlook. And no, I’m not here to tell you that crypto is evil. I’m the one to provide you with the raw dogma, the bullshit that the crypto bros just sorta forget about.
Decentralization? More Like Centralized Power
Isn’t the whole point of crypto decentralization? Freedom from banks, governments, and centralized control. But upon closer inspection, it’s an eye-opening reality. This so-called “decentralized” landscape is often dominated by these whales—individuals or entities that hold large quantities of certain cryptocurrencies. And these whales can move markets with a single swap. In turn, the average investor — you and me — is left feeling disempowered and at risk.
Think of it like this: imagine a small town where everyone owns a piece of land. Sounds fair, right? What if a single person owned all the land but 10% of it? They’re the ones that control the water supply, the roads, everything. That's the reality of crypto. It’s decentralized in name, but in reality it’s very much centralized. Because it’s the illusion of control—and this illusion is dangerous.
Earth is Paying the Price for Bitcoin
Let's talk about the elephant in the (digital) room: the environmental cost. The energy consumption of proof-of-work cryptocurrencies, like Bitcoin, is tremendous. We’re discussing the equivalent of countries—actual countries—in electricity consumption. All to hash transactions, mine the blocks, and add the chain to the blockchain.
Many proponents tout Bitcoin mining as the answer to achieving renewable energy goals. That’s not what’s happening in reality, because the reality is that a majority still relies on fossil fuels. This increases the emissions that cause climate change. It increases the severity of extreme weather events, accelerates sea-level rise, and compounds the environmental catastrophes we’re already experiencing.
Are those possible profits really worth helping to hasten the demise of our planet’s only home? Ask yourself that. Seriously. Consider the unintended consequences. Is this the kind of financial freedom Americans want—traded at the door for environmental devastation?
Crypto Scams: The Emotional Toll
Put aside the technocrat speak and the smart-market-map-market-analysis for a minute. Let's talk about the human cost. The crypto space is full of scams that are taking advantage of people’s dreams and aspirations. By this, I mean rug pulls, pump-and-dumps, and outright Ponzi schemes that have left their victims financially and emotionally ruined.
I’ve heard horror stories of individuals losing their entire life savings, their entire retirement fund, everything. The sheer desperation and despair are heartbreaking. And the worst part? Without the regulatory protection, these victims are often left with no place to go.
It's easy to get caught up in the hype, to believe that you're smart enough to avoid the pitfalls. But scammers are getting increasingly sophisticated. They take advantage of our empathy, our sense of greed, and our fear of missing out. Don't become another statistic. So be skeptical, be cautious, and never invest more than you can afford to lose.
Volatility: Faster Ride to the Bottom
To be sure—the price swings in the crypto market are the stuff of legend. We’re not referring to single digit percentage changes, we’re talking about double-digit percentage gains and losses within a single trading day. Although many professional investors have a great time operating in this market environment, it’s catastrophic enough to be completely disastrous for the retail investor.
Picture this – imagine investing your hard-earned savings into a cryptocurrency, only to have its value tank by half in the middle of the night. Can you stomach that? Can you afford to lose that much? Unfortunately for many of our constituents, the answer is a definite no.
Make no mistake—the dream of easy fortunes can delude you to the imminent threat of complete monetary disaster. Crypto is not a get-rich-quick scheme. It’s a speculative, highly volatile market that requires time, patience and fortitude. Avoid making FOMO (fear of missing out) the reason for your bad decisions.
Not Inflation Hedge (Yet) – Correlation Kills
The story that Bitcoin is a safe haven asset, a hedge against inflation such as gold, is compelling. The evidence simply doesn't support it. In practice, crypto has more acted like a highly speculative tech stock, moving in sync with other volatile assets.
During times of high inflation and a crashing stock market, crypto has been no different. That’s because it’s still a new, nascent and untested asset class that is subject to massive impact from market sentiment and speculation.
Don't fall for the hype. Bitcoin may well be a safe haven asset in the future, but it’s clearly not one today. If you want a genuine hedge against inflation, there are much safer alternatives.
Look, I’m not here to argue that crypto ipso facto is some great evil. What I’m arguing is that you need to come to it with your eyes wide open. Don't let the hype cloud your judgment. Know the risks, don’t risk more than you can afford to lose and do your own research. And on anything, always, always be wary of anyone who claims to offer you sure-thing profits.
We agree that the crypto world can indeed be transformative, but it can be equally as destructive. Like any incredible technology, it’s on you to figure out how to use it safely.
