The collapse of the crypto exchange FTX is much more than another financial debacle hitting the world. It is a testament to how governments fail to define and implement a theory for humanity that would have prevented the creation of such an exchange in the first place.
In 2013, I warned how Bitcoin would make the world flat again, as indiscriminate trust in a currency is incompatible with discriminate trust needed to assign merit to money. Ignoring that obligation comfortably, while the Chinese government cleverly banned crypto, FTX invented the next level of misplaced trust by compounding crypto idiocracy by adding even more speculation on top.
This symptom of government not apriori establishing the theory, system, and rules of the game of finance before people are allowed to play is why so many other constructs in American society fail so spectacularly. The undesirable consequences come from ignorance to cause. Our government should be responsible for establishing the theory of human gameplay, by which then all derivative systems must abide.
Hence, the problem with FTX is not FTX but a government failing to govern. An observation becoming abundantly clear when only after FTX imploded, not before, prosecutors from various federal agencies proudly announced their prosecutorial charges. Without a theory of humanity establishing the objective of our presence on Planet Earth, we must expect an increasing number of people to take laissez-faire governance for a selfish ride at the cost of others.
Government must learn how to establish a theory, in the words of Albert Einstein, that determines what can be discovered.
