Crypto & Economics Vol. 1

As we are witnessing more and more people coming into the world of crypto assets & currencies, we now have an ecosystem where there are not only the original cypherpunks and early casual IT-nerds actively involved. But also high net worth individuals, speculative bodies such as hedge funds and even institutional investors.

For the average user it may get more difficult with these types of players entering the environment and trying to monetise cryptos. One thing I was able to observe on Twitter was, that early crypto traders had an extensive knowledge about DLT and individual coins but do not know too much about basic economics and fundamentals of price action in traditional markets.

Going forward, this however will become more & more important in order to defend against the legacy trading power entering the market place.

So, I thought about starting to give the fundamentals of modern economics by picturing the 2 opposing market participants, that can be explained by the two major economic theories.

1.) JOHN MAYNARD KEYNES (representing the actual system which is in place in most developed countries and in this example referring to new entrants such as institutions and hedge funds)
2.) F. A. Hayek (who is more or less in line with the original rationale of Bitcoin and its ideology where systems are not manipulated by a central body) representing the innovators and early adopters for the sake of this example

And, I figured in order to do so I would present you with this video which pretty much sums up a semester's worth of classic economics lectures in a rap battle that's on par with Tupac & Biggie.

If you like this one, check out the follow up that's more like a modern version of the Jay-Z & Nas beef :D