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.
Watch Our Founders Video
Disclaimer: This commentary is provided as general information only and is in no way intended as investment advice, investment research, legal advice, tax advice, a research report, or a recommendation. Any decision to invest or take any other action with respect to any investments discussed in this commentary may involve risks not discussed, and therefore, such decisions should not be based solely on the information contained in this document. Please consult your own financial/legal/tax professional.
Statements in this communication may include forward-looking information and/or may be based on various assumptions. The forward-looking statements and other views or opinions expressed are those of the author, and are made as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated and there is no guarantee that any particular outcome will come to pass. The statements made herein are subject to change at any time. Arca disclaims any obligation to update or revise any statements or views expressed herein. Past performance is not a guarantee of future results and there can be no assurance that any future results will be realized. Some or all of the information provided herein may be or be based on statements of opinion. In addition, certain information provided herein may be based on third-party sources, which is believed to be accurate, but has not been independently verified. Arca and/or certain of its affiliates and/or clients may now, or in the future, hold a financial interest in investments that are the same as or substantially similar to the investments discussed in this commentary. No claims are made as to the profitability of such financial interests, now, in the past or in the future and Arca and/or its clients may sell such financial interests at any time. The information provided herein is not intended to be, nor should it be construed as an offer to sell or a solicitation of any offer to buy any securities, or a solicitation to provide investment advisory services.