To take one hyperbolic example, the invincible juggernaut of Bitcoin at $110,000 is dominating the headlines. We’re promised it’s the future, it’s a digital gold rush, it’s your ticket to financial freedom. And who profits off of this damaging speculative mania? More importantly, who pays the price? While some analysts are laser-focused on funding rates and leveraged ETF flows, buried underneath this success lies a much darker tale – a tale with broken dreams, environmental destruction and increasing inequality.

Whose Dreams Turn to Dust?

Imagine stepping into the shoes of Amahle, a single mother living in South Africa. She was enticed by social media promises of easy wealth. Desperate to not miss out, she dumped her entire life savings—the money set aside for her daughter’s college fund—into a crypto Ponzi scheme. It vanished overnight. Amahle is not an outlier. She’s become the face of the long-forgotten victims of crypto hype.

We all applaud as Bitcoin grows, all too often turning a blind eye to the predatory marketing practices that exploit vulnerable populations. Promises of financial freedom are thus weaponized, preying on those most desperate for a way out. As millions of average Americans lose everything, the sophisticated investors clean up and cash out. The SEC Chair’s optimism about DeFi doesn’t sound like a tune that Amahle can dance to. It’s a small consolation for her daughter, whose future now is in limbo. Where's the DeFi optimism for her?

The harsh reality is that Bitcoin’s rise for many is a zero-sum win. In the meantime, the altcoin rally just hangs on to its coattails. Someone profits, and someone loses. And too often, the people who end up losing are the people who can least afford to do so.

The Earth Pays The Highest Price

The digital world has a huge, very real, very dirty footprint. Bitcoin mining, with its voracious energy appetite, is a climate disaster waiting to happen. Those increases in UNI and AAVE? They are powered by electricity, a lot of which is still coming from fossil fuels, worsening climate change. Bitcoin's price surge is a direct accelerant.

Think about communities around Bitcoin mining operations that are being hit with higher energy costs and added pollution. They shouldn’t have to sacrifice affordable electricity for clean air, all so some guy can gamble on a made-up digital thing. After all, we’re not just discussing an amenity or convenience—we’re discussing fundamental human rights.

Considerations of environmental justice and all people Is Bitcoin worth it if it negatively impacts environmental justice? Are we so driven by short-term profits that we’re completely blind to the catastrophic damage we’re inflicting on our planet? This harm is experienced by some of our most vulnerable residents and essential workers.

Empowerment? Or Just New Inequality?

The story of Bitcoin empowering the financially disadvantaged is a carefully created tale. A few people have earned billions in profits. The overwhelming majority have been abandoned, either forced out of the market or preyed upon by scammers and fraudsters.

The stock of recently IPO-ed Semler Scientific (SMLR) is a case in point. The stock of the firm that had minted and hoarded the Bitcoin crashed. Looks like the market is not convinced as much as the company would like. The volatility is not just a feature. It's a weapon, favoring experienced traders with deep pockets who can weather the storms.

Price targets such as $110,000 muddy the waters. They obscure the true human toll of this new digital gold rush. We need to shift the conversation.

Let’s end the hypocritical applause for Bitcoin’s soaring price and focus instead on helping the millions of real victims of crypto hype. We have a heavy moral obligation to do right by all those we are leaving behind in this wave of digital revolution. Otherwise, the future of finance will look a lot like the past – a system that benefits the few at the expense of the many. We can’t allow the pursuit of digital gold to cloud our judgment and ignore the impact on the ground. The future of finance can’t just benefit a privileged elite, it needs to work for the rest of us too. It is our responsibility to ensure it.

  • Demand stronger consumer protection regulations to shield vulnerable populations from crypto scams.
  • Support sustainable crypto mining practices and hold the industry accountable for its environmental impact.
  • Invest in education initiatives to equip people with the knowledge they need to make informed decisions about crypto investments.
  • Advocate for policies that redistribute wealth generated by crypto to fund social programs and address inequality.

It's time to stop celebrating Bitcoin's price and start acknowledging the real victims of crypto hype. We have a moral obligation to protect those who are being left behind in this digital revolution. Otherwise, the future of finance will look a lot like the past – a system that benefits the few at the expense of the many. We can't let the pursuit of digital gold blind us to the real-world consequences. The future of finance must work for everyone, not just the privileged few. It is our responsibility to ensure it.