One of the people who created Dogecoin is calling cryptocurrencies a scam. Jackson Palmer is one of the minds behind the meme coin and he doesn’t often post to social media. But, the creator decided to shake the table on Twitter this week and a lot of people followed a thread where he argued that cryptocurrencies aren’t that much different from any other “get rich quick” scheme. It’s been a wild year on a host of financial fronts. Millions are in dire straits due to the pandemic, AMC might have been saved from extinction by rogue day traders, and NFTs became a wildly successful bubble that eventually fizzled. (Note: More information about the negative ecologic impact of cryptocurrencies and NFTs is included at the bottom of this article.)
Everything about these stories has put the volatile nature of new markets on full display. Palmer felt like he needed to say something at this moment and these comments quickly started a giant debate about the nature of currency and what the practice is doing to the people at the bottom investing in it.
Cryptocurrency is like taking the worst parts of today’s capitalist system (eg. corruption, fraud, inequality) and using software to technically limit the use of interventions (eg. audits, regulation, taxation) which serve as protections or safety nets for the average person.
— Jackson Palmer (@ummjackson) July 14, 2021
In his thread he wrote, “The cryptocurrency industry leverages a network of shady business connections, bought influencers and pay-for-play media outlets to perpetuate a cult-like “get rich quick” funnel designed to extract new money from the financially desperate and naive. Financial exploitation undoubtedly existed before cryptocurrency, but cryptocurrency is almost purpose built to make the funnel of profiteering more efficient for those at the top and less safeguarded for the vulnerable.”
“Cryptocurrency is like taking the worst parts of today’s capitalist system (eg. corruption, fraud, inequality) and using software to technically limit the use of interventions (eg. audits, regulation, taxation) which serve as protections or safety nets for the average person,” Palmer added in the next tweet.
(Note: Many critics point to the ecologic toll of NFTs, cryptocurrencies, and other such technologies as having a disastrous effect on the planet and exacerbating climate problems. You can read more about that here)
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