One of the biggest names in the world of cryptocurrency shared thoughts on the current state of the global economy and inflation this week.
What Happened: Charles Hoskinson is best known as one of the co-founders of Ethereum (CRYPTO: ETH) and the founder of Cardano (CRYPTO: ADA). Hoskinson could soon be known as a leading voice of cryptocurrency fixing major global financial issues.
Hoskinson called the current global economy a “train wreck” and encouraged listeners to his broadcast to “wake up.”
“The world economy is not healthy,” Hoskinson said.
Hoskinson worries that hyperinflation and the constant printing of money by governments could lead to a dystopian future.
“They’re playing musical chairs with a global economy which will collapse. It cannot sustain itself.”
Hoskinson said the recent drop in prices for many cryptocurrencies was led by institutional investors exiting.
“Institutions have been dumping their crypto. This was always the danger of inviting the Wall Street types in.”
Related Link: 5 Things You Might Not Know About Charles Hoskinson, Cardano Founder And Ethereum Co-Founder
What’s Next: Hoskinson argued that a cryptocurrency that is “best-to-market” could be part of the economic solution and help the world avoid economic collapse.
Hoskinson also cautioned there may be some rushed products that are not the best.
Some cryptocurrencies did not meet the qualifications because they were “chasing the gains for their VC masters,” Hoskinson said. While Hoskinson wouldn’t name who he was referencing, Decrypt suggests that Hoskinson could have been talking about Terra (CRYPTO: LUNA) and TerraUST (CRYPTO: UST), which have plummeted in price over the past week.
“The entire point of cryptocurrencies are to restore some trust, credibility and stability into the world money system.”
Hoskinson argued that it’s not cryptocurrencies doing damage, but instead manipulation driving down prices.
Retail investors are holding cryptocurrency because they believe in changes to the global economy, Hoskinson said.
Hoskinson is hopeful that cryptocurrencies can show the positives going forward and help fight off a market plagued by inflation.
Hoskinson also released a new paper this week that formalizes p2p and shows how hard it is to get proof-of-stake networking right.
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