Flat White

Crypto, hypocrisy, and the end of capitalism

6 April 2022

12:00 PM

6 April 2022

12:00 PM

China’s attempt to usurp the USD could turn out to be the beginning of crypto regulation and the end of Xi’s dabbling in the crypto and digital currency market.

As the war in Ukraine grinds away – taking the West’s attention – the East continues to rise and unconsciously subjugate the rest of the world under its iron curtain. The Red Sea expands and China’s latest envelopment can be seen in the form of digital currency warfare.

Inflation is starting to rise post-pandemic, house prices are so grossly inflated that the average individual cannot even afford to find a home to live in, and petrol prices have skyrocketed to the extent that soon people will be back working at home as they cannot afford to drive to work. The Chinese, by releasing the digital yuan not so coincidentally at this time, are capitalising on the opportunity that first the pandemic (and now Putin’s invasion of Ukraine), have presented to usurp the world as we know it today.

The irony is that in Xi’s attempt to take over the West by dangling the carrot of instant and unregulated returns that cryptocurrency, greed, and digital currency currently give, he risks unveiling his plans of expansion through an attempt to dominate – and even replace – the gold standard the US dollar has provided up until now.

Soon, the West will be forced by this to regulate cryptocurrency and altcoin currency trading in all its forms. Whilst the past ten years have provided a brilliant opportunity for investors, as with anything in life (and finance in particular) greed can cause it to be overrun and can result in the need for regulation.

How this impacts the global economy will hopefully prove promising, the cynical optimist in me says. Not only will all types of investment begin to stabilise and even return to affordable prices, but perhaps the world may have the chance and opportunity to focus on the kinder and more compassionate benefits that sharing and not being beholden to over alacrity can bring.

In what has become an unsustainable environment and world for the average person to live and survive in without being overly beholden to credit card debt or over-leveraging, it strikes me that a correction in the market and global economy occurring sooner rather than later will only be a blessing for many. Why we fight to stave off the inevitable sometimes often perplexes me. The longer we postpone the crash, the harder we will all have to fall.

The war in Ukraine and China’s no longer subtle attempts at undermining the West (in spite of it claiming to be a merely harmless and, in some respects, underdeveloped, disadvantaged nation), have highlighted how far we have gone down the line of dependency on these countries and systems, which are now openly a threat and obstacle to peace and even equality. 

The irony of the situation is that Xi’s supposed communist principles and dystopian ideology will become more present in the West than in the East when individuals will have the opportunity to thrive as a result of the stability that will result from a global correction. Reality will hit when inflation does, and reality will hit when Xi drops the pin and finally makes it known that the digital yuan is, in actual fact, an alternative to the altcoin and cryptocurrencies that the Chinese have banned. Again, we see a double standard appearing from the Chinese and in all honesty, what less can we expect from their leader…?

Levelled housing, food prices, transport costs, trading fees, and investing opportunities are the only tools that will put the West back in control. In the meantime, the Chinese government will soon realise that they have shot themselves in the foot when it comes to attempting to usurp the USD through its undermining of the west’s intelligence and creativity. All this through their inadvertent and unintentional push for alternative currency and by this I mean digital currency, which in turn, will ultimately lead to cryptocurrency regulation.

 Natasha Poole BA & MA Hons Litterae Humaniores, University of Oxford, UK

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