Ethereum co-founder and founder of Cardano, Charles Hoskinson, pronounced “the world economic order of the 20th century” dead in a recent YouTube livestream titled “Goodbye 20th Century, Cryptocurrency is the Future”.
By “the economic order of the 20th century,” Hoskinson means a centralized hierarchical economy built by “a series of treaties” made by a few great powers, that economy was built for the times “when information was not instantaneous” and when most people were willing to accept the dictum of “big brother.”
Hoskinson said the recent downturn in the market was caused by the incongruity of the hierarchical order created by powerful institutions such as governments, corporations, international organisations, where few powerful entities decide the destinies of billions. This centralized hierarchical structure is no longer the world in which we live, the world which is becoming flat and decentralized.
According to Hoskinson, blockchain technology’s new decentralized order is meant to solve some of the most pressing issues of modernity such as data ownership, privacy, and identity; an order in which CEOs or presidents are supposed to be no longer needed.
No More Empires
Hoskinson thinks the very fabric of the world order unravels before our eyes:
“What we are looking at right now is the unraveling of the economic order of the 20th century… Winners and losers that had certain assumptions about how power should work, how money should work, how credit should work, how finance should work, how information needs to flow. And this economy was sustainable and stable when information was not instantaneous. And when it was totally acceptable to have empires, meaning one or two nation-states being supreme above all others and establishing all the rules and regulations.”
Will the European Union Survive?
Hoskinson claims the old system patched the old economy with things like easy credit, which in less than 20 years resulted in a “five-fold increase” of US national debt. In the case of Japan, the Olympics were supposed to kick-start the stagnant economy in the country, but it won’t happen because of the “global pandemic” known as the coronavirus. He points to Italy, where it can potentially quarantine “16 million people.” Hoskinson believes this will lead to the election of a populist government:
“And we’ll probably see an Italian version of Brexit come. And can the European Union survive if Italy leaves? Perhaps France next.”
After lashing out at international governments, Hoskinson hits the U.S. establishment:
“Our president and the opposition party could have set their petty rivalries aside and said it’s for the good of our people. We should work together instead. What did they do? They looked at it like a political game. And they said, hey, let’s go ahead and see who could score the most points. A recession is bad for the incumbent president. So let’s just make sure that that happens regardless. And meanwhile, the other side is ignoring the fact that we are entering into a pandemic and millions of people could die because they don’t want the markets to collapse. It’s disgusting.”