The Rise, Fall, and Future of Cryptocurrency and Decentralization

In recent years we have seen the meteoric rise of Cryptocurrency and the emerging concept of Decentralization. The growing influence has reeled in even the common retail investor into it with their lucrative “Returns”. Even though these sound like some new Meta-age terms, these concepts have existed way back in the 2000s and even before them. Decentralization for example is not a new concept, it has existed as a system of distribution of authority and decision-making even before it was applied to digital assets as a management principle. Don’t believe me? Just search about Fayol’s 14 Principles of Management.

However, what accompanied this meteoric rise and glory was an equal Icarusian fall. The lack of trust and reliability had resulted in the downfall of crypto and the spread of FUD as the crypto bros will tell you. The FUD this time however seems to be well notioned as seeing Crypto giants such as Three Arrow Capital and Celsius fall and declare bankruptcy while defrauding their very customers of their money and getting away scot-free. This along with a myriad of different NFT(Non-Fungible Token) Scams and Rug pulls combined with a pre-existing distrust towards crypto and NFTs have done nothing but sway the public opinion against the well-intentioned concepts of Cryptos and Decentralization.

 

 

Coming to the future we can for sure foresee some form of regulation in the market be it in the form of enhanced accountability or through some other form. We can also expect a greater growing distrust towards this space as a whole along with a growing ecological crisis caused by inconsiderate miners which would also lead to shortages in GPUs if this trend continues.

Cryptocurrency can never replace fiat money, it's theoretically and physically impossible at this point. The blockchain, an all-seeing ledger, simply can’t handle that much traffic which would cause transaction speeds to throttle. Moreover one of the primary functions of money is to act as a store and measure of value. No one wants their purchasing power and money value to fluctuate so often. Imagine this today you could buy an entire restaurant but tomorrow you might not even be able to buy a coffee. Sounds extreme but people who invested their entire life savings into rug-pulled cryptos would disagree.

In Conclusion, I would like to say that while the concept of Decentralization and a decentralized currency is very well-intentioned and useful, Modern Greed has transformed it into nothing but a glorified Ponzi Scheme where you’ll profit as long as you can hand the bag to the next sucker in the life, but beware you might just be the sucker who is left holding the bag when the coin collapses.