Even with all its flaws the crypto industry is still exponentially more honest and moral than central banking whose fiat currency systems have been the root causes of unquantifiable pain and suffering since they were first established in the 1600s starting with the bank of Amsterdam.
This is because being able to print money out of thin air inevitably results in the misallocation of capital.
Usually this means central bankers and politicians lining the pockets of their cronies in the public and private sectors and this time it’s the energy companies that are getting the kickbacks instead of looking for ways of getting their hands on more energy.
Germany, France, the Netherlands, Austria the United Kingdom and others are subsidizing energy costs by shoveling money into their energy companies pockets or into the bank accounts of their citizens.
This is causing the Euro and the Pound to lose value against the US dollar at an unprecedented rate.
That’s mainly due to the interest rate differences between the EU, UK and the US.
The latter has been increasing interest rates aggressively over the past few months whereas the former two have been slow to do so.
Moreover inflation in the UK and Rurope is higher than in the US which leads to less investor interest versus the greenback.
The scary thing is that this trend is likely to accelerate as winter approaches especially since Russia recently shut down its gas supplies to Europe indefinitely citing a need for additional maintenance when the real reason is likely retaliation for the G7 countries setting a price cap on Russian oil.
As a result hundreds of thousands of small businesses in Europe and the UK risk being shut down for good due to the rising energy costs and don’t even get me started about the so-called climate lockdowns that are being suggested by some governments to save energy.
This unfortunate state of affairs is leading to what will likely be record levels of social unrest around the world setting the stage for totalitarian crackdowns in some countries and regime change in others.
In the meantime expect to see more and more people flock to US dollar stable coins to protect their purchasing power.
Since stable coins run on smart contract cryptocurrencies the coins used to pay fees on the blockchains that support the likes of USDT and USDC could potentially benefit.
Then again the deep recession and energy shortage is likely to cause in Europe this winter will almost certainly shock waves through the rest of the world.
This could result in an economic situation not seen since the Great Depression almost 100 years ago and some would say we’re there already.
It’s safe to say that the people in power will take advantage of this mostly manufactured crisis to the best of their ability.