Hyman Minsky (1919-1996) formulated the Financial Instability Hypothesis, arguing that prolonged periods of economic stability endogenously generate the conditions for crises. The process moves through three financing stages (hedge, speculative, and Ponzi) until a collapse known as the Minsky moment. The 2020-2022 crypto cycle is one of the most compact and accelerated manifestations of this pattern in recent financial markets.

Minsky’s central thesis is that stability is destabilizing. Prolonged growth, low interest rates, and positive returns alter agents’ behavior. Awareness of risk fades, debt tolerance rises, and financing structures migrate from conservative to increasingly fragile forms. The process is endogenous, driven by…