Cryptomaniallenials and the loss of meaning
Big question number two: How did this entirely new thing emerge?
Particularly so for a generation that had witnessed a global financial crisis - why is their risk tolerance so high?
Big question, here is my take: It is the perfect storm of several megatrends.
Financial:
- An economy aflush with cash
Economic:
- An economy that values the intangible and non-physical products more than physical ones (link post)
- A stripped out Millenial workforce facing high debt/expenses
- Weakened traditional wealth-growing prospects
Social
- Distrust in institutions, and Us vs Them social narratives
- Virality and platforms to build communities quickly, anonymously to develop minority identities. (link post)
On top of this, I believe there has been a fundamental decline in well-paid meaningful (i.e. non Bullshit) jobs. Is it emotionally or physically “worth it” to participate in the economy?
In past generations, there was a glorification of labour as there was an immense meaning and pride to putting food on the table in the post-war era. Work was more “functional” than it is today. But now, it is no longer a noble thing to work and flex how much one may have worked as most basic things (ala Mazlowe) are provided.
There has also been a decoupling of capability between education and age. While capabilities have significantly increased compared to the past, wages and rewards are not commensurate because most rewards go to jobs that may not actually make use of that capability and potential.
As such, there is a deep mismatch between the outdated expectations of the past against the day to day realities of life and the world (increasing bullshitness of the job roles and functions today).
I trace this back once again to the intangible nature of the future of work where meaningful jobs (ie physical) have been heavily automated and commoditised. Food, security etc, now takes a fraction of the manpower. What other meaningful jobs are there out there to employ people and drive the economy?
With all of the above combined, this era has created a propensity for people (especially the disillusioned) to gravitate towards: Get-rich quick / High risk - high reward pathways to achieve the growth of wealth. This offers an alternative path to life compared to more “conventional” jobs.
Long Term Concerns
Fundamentally I can see this trend damaging communities and the future development of a country more than it does good. I picture a 20 something year old crypto winner, who may have gained significant upward mobility, but runs a significant risk of being stranded with no assets, no meaningful skills, nothing to contribute and return from a societal point of view.
I.e. s/he has been rewarded by the system, for returning nothing to the community he lives in.
There is economic activity - sure - but at the cost where there are no fundamental skills, nothing sticky, nothing meaningful, nothing contributory to society for its participants.
I suppose my core question is whether society as a whole is better off with a fully decentralised network, or if there are protective elements embedded within centralised control that makes up a stronger (albeit clearly exploitable) system. It is, the question of these times.
The future of Cryptomania
In the near term, some would say that alternative assets are only doing well during a bear market. Indeed with the lack of any economically productive/meaningful innovations currently, the capitalist engine is instead relying on speculation and vanity for growth.
But a fascinating long term scenario would be the catastrophic collapse wehen times are “tough”. Of course, this could arise from many things. Climate-induced poverty and/or hunger; war in the Pacfiic, war in Eurasia. Aliens. (^that went from zero to 100)
For example, when there isn’t food on the table, and human suffering, and fundamental physical needs take precedence - will NFTs and Crypto be able to stand on its own feet to supersede more traditional, government-backed forms of currency?
Still too had to say at this stage. On one hand, for such a catastrophe to have occured, one can imagine the existing, government-backed financial systems collapsing. This validates the view that the institutions cannot be trusted, and hence power to the people!
On the other hand I find it ridiculous to believe that - if guided by our own animalistic tendencies - a functioning, stable currency can emerge. Perhaps I’ve been watching too many dystopian movies.
It would be interesting to further investigate this topic against existing examples: an organic development of a currency-based system without the need for an institutional government.
It indeed comes full circle: if currency is built on trust and belief, it becomes the very thing I abhor asking: who are we to trust and what are we to bet on in the future? Would we rather trust a global pyramid scheme or trust the United Nations? hmm.