Matt Levine, a Bloomberg Opinion columnist and former investment banker, has written a 40,000-word exploration of the crypto industry until the current market meltdown. It is the only article in Bloomberg Businessweek for the second time and making quite a news.
The Crypto Story deals with the rise of digital assets, alternative finance, web3, and regulations. It covers the most basic questions about one of the most debated topics in modern finance – cryptocurrencies.
Giving a glimpse of what this lengthy article contains, Bloomberg’s Angela Moon presents 10 key takeaways.
According to Levine, databases are a foundational part of modern existence and in extension, it leads to a trustless environment where people trust the institutions that store and control the databases. The trust that a professional will deliver high-quality service is no longer needed as databases can perform the task without making any distinction.
This hypothesis is the foundation of Satoshi Nakamoto’s whitepaper and the launch of bitcoin.
“Crypto is in a way about rejecting the institutions of society, about being trustless and censorship-resistant… But it quietly free-rides on people’s deep reservoir of trust in those institutions… Trust in institutions is so strong and resilient that all of the crypto’s bluster can’t stamp it out,” Levine writes.
His article lets ordinary people know that they can create their cryptocurrencies but these digital assets can’t completely bypass the real world.
