Aesop’s fable, “The Ant and the Grasshopper,” describes how an ant forgoes the instant gratification of summer bliss to plan and prepare for winter. A shortsighted grasshopper ridicules the ant’s diligence, but come winter, the ant is warm and well fed. But, conversely, the grasshopper is ill-equipped and perishes in the cold.
It has been a bitter first half of the year, underscored by broad indications of a centralized systemic fraying. The world economy has been under immense pressure, caught between runaway inflation and a faltering economy. Digital assets, which are only a tiny fraction of overall assets, are massively impacted by these economic forces.
While they were created to address issues with centralized systems, they have yet to go through a period of systemic stress. However, the sector is predicated on and energized by the assumption that centralized systems—the Enrons and Equifaxes of the world—will suffer multiple points of failure, especially during periods of uncertainty.
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