--- title: "Economists Compare Crypto to “Cocaine” in Scathing Takedown" description: "A pair of Johns Hopkins economics experts eviscerated the crypto industry and equated it to cocaine in a scathing anti-regulation takedown. " date: "2023-03-09" modified: "2023-03-09" authors: - name: "Noor Al-Sibai" job_title: "Senior Staff Writer" link: "https://futurism.com/authors/nooralsibai" url: "https://futurism.com/the-byte/economists-crypto-cocaine" categories: - "Blockchain" - "Cryptocurrency" - "Future Society" tags: - "crypto" - "economics" - "gambling" - "the digest" --- # Economists Compare Crypto to “Cocaine” in Scathing Takedown ![A pair of Johns Hopkins economics experts eviscerated the crypto industry and equated it to cocaine in a scathing anti-regulation takedown. ]() *\Image: Getty / Futurism\* ## Gambling Debt In one of the strongest-worded takedowns of cryptocurrency we've come across, a pair of Johns Hopkins economics experts eviscerated the industry and argued it's "part cocaine" in a scathing takedown. In a fiery [*Wall Street Journal* op-ed](), economics professor and outspoken crypto critic Steve Hanke and Matt Sekerke, a fellow at the university's economics school, argued that while the devastating [2022 crypto crash]() could've technically ended up worse, the existing links between traditional banks and crypto "show how easily a cryptocurrency crisis might spill over." "Contrary to what its marketing wizards tell us, crypto is neither money nor a vehicle for finance," they expounded. "It’s an elaborate simulation of finance that produces gains and losses." Comparing crypto to casino chips, the two experts argued that crypto is actually worse than gambling because, while people can pretty well guess the odds in a casino, "the odds in crypto are subject to gross manipulation." And even government intervention wouldn't be able to redeem it, either. "Regulation might stabilize the house odds and the exchange rate for chips such as stablecoins," they declared, "but it wouldn’t transform crypto into finance." ## Burn, Baby, Burn In a post-FTX world, there are, according to Sanke and Sekerke, two options: regulate crypto to tamp down its free-for-all nature, or let it burn. It's not hard to see which side the economists came out on. "Regulating crypto would encourage denser, deeper connections, generating systemic risks," the pair wrote — and as such, they think the entire industry needs to be kiboshed by the government. The JHU economists continued their elaborate metaphor, likening crypto to [ozone-depleting chemical compounds](), [antiquated trash bonds](), and, well, the [financial industry's recreational drug of choice]() in the 1980s. "Crypto is part chlorofluorocarbon, part cocaine and part bearer bond," Hanke and Serkeke concluded. "It isn’t the future of finance. More than malign neglect, the US needs policies that will eliminate cryptocurrencies and their metastases." Tell us how you really feel! **More on crypto crusades:** [*Influential Economist Tells Davos Elites That Crypto Is a Complete Scam*]() ## Author At Futurism, I've often been drawn to unpacking the narratives that underlie technological, scientific and medical progress, with a special interest in areas of conflict and ambiguity that end up setting agendas and steering the fates of both elites and the hoi polloi. I'm a committed generalist, but I often find myself returning to work involving NASA and the private space sector, the effects of AI on media and society, and the mechanics of the pharmaceutical industry, with a specific focus on the spread of GLP-1 drugs like Ozempic and Wegovy. Prior to Futurism, I worked for publications ranging from Media Matters and Truthdig to Raw Story and Bustle. I'm also the author of "Myspace Scene Queens," a 2024 title in Instar Books' acclaimed "Remember the Internet" series. My work at Futurism has been cited by outlets including the New Yorker, Slate, Nieman Lab, the Verge, the MIT Technology Review, the Sunday Times, and the Daily Beast. I grew up in North Carolina, attended the University of North Carolina at Asheville, and now live in Brooklyn, New York. In my free time, I'm an avid reader and music fan; you can probably find me at a local poetry reading, concert, underground rave, or DJ set. I'm the proud parent of an ineffable orange cat named Mee-Mow. ### Author social links [Bluesky]()