In the world of cryptocurrency, fortunes are made and lost very quickly. Some see it as a way to a perfect future, while others have concerns about its legality and risks. Ben McKenzie, a former actor who is now an expert in cryptocurrency, falls into the second category. He believes that the current financial system is deeply flawed. When we explore McKenzie’s perspective, we discover interesting facts that highlight the volatile nature of the crypto industry.
Cryptocurrency emerged after the 2008 financial crisis and caught the attention of many, including McKenzie. Known for his role in the popular TV series The OC, McKenzie became interested in crypto during the pandemic. He took an online course on cryptocurrencies and co-wrote the book “Easy Money: Cryptocurrency, Casino Capitalism, and the Golden Age of Fraud.”
In their book, McKenzie and his co-author extensively explore the world of crypto. They interview traders, founders of exchanges, promoters, whistleblowers, and even government agents, providing a thorough examination of the industry. One of their main criticisms is the excessive promotion of crypto by celebrities like Matt Damon, Reese Witherspoon, and Kim Kardashian. McKenzie attributes these endorsements to weak regulators and emphasizes the urgent need for stricter regulations to prevent another crypto bubble.
The downfall of Sam Bankman-Fried, a prominent figure in the crypto world, was a major setback for the momentum behind cryptocurrency. Combined with the decline in crypto’s value in 2022, this setback has made many investors hesitant to reinvest. McKenzie observes a shift in enthusiasm from crypto to artificial intelligence (AI). As AI becomes more prominent, McKenzie highlights the CEO of OpenAI, Sam Altman, and his project Worldcoin, which combines AI and crypto.
McKenzie argues that the crypto industry lacks tangible assets and heavily relies on marketing. He draws comparisons between the rise of multi-level marketing (MLM) and pyramid schemes, which now thrive on platforms like TikTok and Instagram. McKenzie emphasizes the importance of regulatory intervention to prevent celebrities from promoting crypto products they may not fully understand.
McKenzie’s book “Easy Money” is often compared to “The Big Short,” which exposed the recklessness behind the 2008 subprime mortgage crisis. McKenzie acknowledges the moral, ethical, and possibly legal responsibility of celebrities who promote crypto, and urges regulators to take action. He sees some truth in the criticism from the crypto community about the current financial and economic system.
McKenzie’s perspective on crypto is not that of an outsider. With an economics degree from the University of Virginia, McKenzie brings a unique blend of expertise and personal experience to the table. Known for his portrayal of a troubled teenager from a working-class background taken in by a wealthy family in The OC, McKenzie’s venture into the world of crypto reflects his ongoing effort to understand the complexities of our economic system.
The crypto industry is a complex and ever-changing landscape that captivates both enthusiasts and skeptics. Ben McKenzie’s critical perspective sheds light on the dangers that arise when regulators fail to address the resurgence of the crypto bubble and allow celebrities to endorse unregulated products. As the industry continues to evolve, it is crucial for regulators, investors, and the public to remain vigilant, ensuring that the pursuit of a perfect future does not leave a trail of individuals who have suffered losses.