The Economist Magazine Criticized the Crypto Sector Very Harshly! Here is the Reason

The Economist targeted the cryptocurrency sector with a harsh critique, describing it as the "ultimate toxic asset" and accused it of straying from the ideals of decentralization, particularly in the context of U.S. politics.

The Economist Blames Cryptocurrency as the "Ultimate Toxic Asset," Criticizes the U.S. Industry's Shift Towards Seeking Political Gains

The article argues that the cryptocurrency sector, once hailed as a revolutionary tool for financial freedom and technological innovation, has become a tool for political gain and insider enrichment, particularly under the influence of President Donald Trump and his allies.

The article states, "In America, crypto has been absorbed by power structures rather than disrupting them." "The issue is no longer decentralization. It is about favoritism, lobbying, and gaining influence."

The publication claims that key players in the US crypto ecosystem have aligned themselves with political organizations to gain regulatory favoritism and financial leverage. According to The Economist, this shift has undermined the fundamental principle of the movement, which was designed to empower users rather than institutions, relating to trustless, permissionless systems.

While acknowledging that blockchain technology still holds potential, the article accused the current U.S. crypto industry of prioritizing profit over principle and political influence over innovation.

Increased campaign contributions linked to figures close to Trump’s inner circle, direct lobbying, and positive policy pressures were cited as evidence that the sector has turned into a "swamp creature" – a term traditionally used to describe dark, high-risk, and politically complex financial instruments.

In the article that states, "Crypto has become exactly what it once vowed to destroy," it was warned that unless the sector refocuses on transparency and decentralization, it risks becoming another established corner of the financial elite it once opposed.