Ethereum co-founder Charles Hoskinson has declared a reverse of the 20th-century economic order in a recent live stream on YouTube.
By reverse of the economic order, he means the change in the centralization of the economy, which was made and controlled by a series of treaties, and powers. This happened in the 20th century going back and was fueled by a lack of instant information.
According to Hoskinson, the current market downturn is mainly caused by centralization that was brought about by governments, corporates, and organizations. Luckily, the trend is changing, and everything is becoming decentralized.
Decentralization is mainly brought about by blockchain technology and has helped to solve main problems facing the market such as data management, privacy, and identity. With decentralization, operations will be seamless as there will be fewer people in the chain.
Hosking believes that the 20th-century economic order worked because the information was not instantaneous, and people believed their leaders, on how things should work. The old system had to look for things to make the economy work such as easy credit, Olympics, etc. With the rise of the Coronavirus pandemic, a new reality has emerged. For starters, Italy might exit the EU. With the pandemic, there is the reality of many people losing their lives, and the economy entering a recession.
With the pandemic, people no longer have faith in the institutions as institutions had been given warnings about a global pandemic ten years ago but did nothing about it. That means that people just realized that they do not need centralization.
Busting the myths
Contrary to popular belief, crypto is not necessarily about fast returns, but it is about disrupting the old system. The concept of decentralization is maximizing on immutable rules, and to rule out any influence of centralization such as politics, natural disasters, and plague.
Hoskinson believes that we live in an era where people want to have full control of what is theirs such as assets and information. They also want to be sure that their data and identity are safe.
With the current pandemic, many people may speculate that the crypto bubble has burst. Cryptos have experienced major losses starting with Bitcoin. Hoskinson, however, advises the crypto community to relax, and focus on the big picture. He believes that the blockchain technology is here to stay, and everything else will follow suit. The market is still focused on doing away with intermediaries for more efficiency and profits.