Socialist Appeal
The British section of the International Marxist Tendency
Investors are calling time on cryptocurrencies, following the downfall of the FTX exchange and its founder, Sam Bankman-Fried. But this episode is only the latest speculative bubble – a symptom of the insanity of capitalism.
Defenders of the free market look towards libertarians such as Hayek and Mises – and their assertion of an ‘economic calculation problem’ – in order to attack socialism. But in truth, Marxists answered these reactionary arguments long ago.
After rising to dizzying heights as part of an orgy of speculation, the price of cryptocurrencies has come crashing down in recent weeks, with investors seeking a safe haven. This is a harbinger of a deeper, wider crisis to come for capitalism.
The 2008 crash and coronavirus crisis have revived interest in the theories of J.M. Keynes, the liberal English economist. But a look at Keynes’ life and ideas show that he was no friend of the working class. We need socialism, not Keynesianism.
In the midst of the pandemic, some parts of the economy are booming. Speculative investments are continuing in a frenzied fashion. The latest celebrity-driven fads, NFTs and SPACs, are among the insane expressions of this whirlpool of speculation.