Ben McKenzie, known for his role as Ryan Atwood in the popular series “The O.C.,” has shifted his focus to cryptocurrency, which he labels as “the largest Ponzi scheme in history.” In his documentary “Everyone Is Lying to You for Money,” McKenzie delves into the crypto industry, highlighting a trend where a select few insiders profit immensely while the majority of ordinary investors face losses.
Initially intrigued by cryptocurrency due to a friend’s investment suggestion, McKenzie, armed with an economics degree, delved deeper into the sector and was struck by what he perceived as the inflated nature of the industry. In 2022, he testified at a U.S. Senate committee hearing on cryptocurrency and co-authored a book titled “Easy Money: Cryptocurrency, Casino Capitalism, and the Golden Age of Fraud.”
While some critics argue that McKenzie’s documentary sensationalizes negative narratives about cryptocurrency, McKenzie advocates for increased regulation to shield investors. He stresses the importance of protecting investors in a market susceptible to manipulation and fraudulent activities.
In a conversation with guest host Lyndsay Duncombe on “The Current,” McKenzie elaborated on the documentary’s concept. He emphasized the fundamental role of trust in the concept of money and how cryptocurrency challenges this trust by privatizing money issuance, leading to potential risks and vulnerabilities for investors.
Despite instances of individuals amassing wealth through crypto investments, McKenzie highlights the pervasive pattern of insiders profiting at the expense of regular investors. He cites the example of Trump coin, where the former president’s family reportedly gained $1.4 billion while investors lost over $3 billion, underscoring the susceptibility to manipulation and fraud within the crypto sphere.
In his documentary, McKenzie explores the psychological aspect of male investors’ attachment to cryptocurrency, attributing it to the allure of substantial financial gains and the sense of ownership and autonomy it promises. He points out that men, who are often drawn to the gambling aspect of crypto investment, tend to internalize losses and continue investing despite setbacks, driven by a combination of hope and the sunk-cost fallacy.
McKenzie concludes by cautioning against viewing cryptocurrency as a superior alternative to traditional financial systems, emphasizing that while criticisms of the current system are valid, crypto presents its own set of challenges and risks. The documentary serves as a critical examination of the crypto industry and its impact on investors, urging for a balanced understanding of its complexities and implications.