Dogecoin co-founder Jackson Palmer suddenly became a bitter opponent of cryptocurrencies. More precisely, the idea of the main disadvantages of the crypt has been brewing for him for a long time, just the day before he voiced his thoughts publicly on Twitter.
According to him, digital assets are «the worst part of the modern capitalist system. » Most interestingly, Palmer has not made anything from the waves of rise and fall of DOGE in recent years: he sold his stake in the project a long time ago and spent money on a Honda Civic.
Note that those who wanted to make money on Dogecoin were still able to do this, and we are talking not only about new investors from 2021. In particular, these include the creator of Ethereum, Vitalik Buterin, who invested $ 25,000 in DOGE in 2016. As a result, the sale of half of the coins a few years later allowed Buterin to earn more than $ 4 million.
Vitalik spent the money on charity.
Why is cryptocurrency bad?
The history of Dogecoin began in 2013 – the altcoin was created by Jackson Palmer and Billy Markus. Despite the actual lack of real value, the community liked the meme cryptocurrency so much that it still occupies leading places in the ratings by market capitalization, that is, the product of the rate by the volume of coins in circulation.
We checked the actual data: today, Dogecoin is ranked eighth in the overall ranking of cryptocurrencies by market capitalization. This figure for DOGE is $ 23.85 billion, which is ahead of the corresponding results of Uniswap, Polkadot, Solana, Chainlink and other popular projects with practical applications. This once again proves that what is happening in the cryptocurrency industry sometimes may not be entirely logical, because the fundamental value of the listed projects is much higher than a cryptocurrency meme, created solely for the sake of a joke.
This year, DOGE was actively promoted even by Elon Musk, one of the richest people on Earth. However, all this does not create any impression on Palmer. Here is a comment from the developer, in which he shares his attitude towards the coin industry. The quote is from Decrypt.
After years of studying the industry, I believe that cryptocurrency is inherently right-wing, hypercapitalist technology, designed primarily to increase the welfare of its supporters through a combination of tax evasion, weakening regulatory oversight, and artificially created scarcity.
However, here Jackson for some reason does not mention the strengths of full-fledged cryptocurrencies. For example, decentralization, which allows coins to exist regardless of the attitude towards them from the authorities and officials. In addition, the scarcity of cryptocurrency – in the case of Bitcoin, the maximum number of coins will be 21 million – is a good hedge against inflation inherent in conventional currencies. And this is also an advantage.
It’s easy to guess from the first quote that the idea of the crypt goes against Palmer’s political views. He continues.
Despite claims of “decentralization,” the industry is controlled by a powerful cartel of wealthy people who have evolved over time to cooperate with many of the same institutions tied to the existing centralized financial system they purportedly intended to replace.
Here, in principle, nothing new – large professional investors began to actively buy BTC last year. Is it bad? By the rise in the price and popularity of Bitcoin, one cannot even say that this is so. We believe that Palmer was clearly misleading on this point.
Cryptocurrency is like a combination of the worst parts of today’s capitalist system in the form of corruption, fraud and inequality, and the use of software to technically restrict the use of interventions – audits, regulation, taxation – that serve as a defense or safety net for the average person.
Jackson criticized the use of «shady business connections» to suck money out of «financially desperate and naive people. » He argues that this is because people «join» a sect where they think they can get rich quickly. The creator of Dogecoin no longer wants to participate in public discussions of cryptocurrencies, because, according to him, even «modest criticism» of the cryptocurrency world is impossible due to the fanaticism of his followers – super-rich investors.
Note that this is not the first time Palmer has criticized the cryptocurrency industry. In 2015, he completely ditched support for Dogecoin and other digital assets, calling the ecosystem «toxic.» In 2018, in an interview with reporters, Palmer said that Bitcoin has become «a bit like a cult» and that the technology behind it has not yet brought much value to society.
We have to disagree with his statements – it seems that Jackson wants to make crypto a universal means of creating wealth for absolutely everyone. But this is unreal. In addition, innovation has always been somewhat similar to the «Wild West», but in the end it also propels society forward.
We believe that Palmer’s criticism of cryptocurrencies is unwarranted. Of course, some coin users do evade taxes, but this is not a reason to consider all cryptocurrency lovers to be violators. Also, decentralized projects change the world for the better and allow people from the least successful countries to join the global financial system. Moreover, in some cases it ends up making a profit that can change lives.