Its harshest critics are often the least informed about the technology.
I made this piece in response to what I would describe as a biased and somewhat misinformed opinion piece in a leading Australian newspaper.
Being a mainstream media source, with this masthead tailored towards more educated people (unlike much of the sensationalist crap out there), you would expect a more well-rounded and insightful argument here.
As a quick summary, the author (I won’t mention it, in case I activate Karen mode; welcome to 2023) starts by calling crypto “the world’s largest-ever Ponzi scheme”.
Not just Bitcoin, but this implies all crypto assets.
OK, we’re off to a beautiful start.
He talks about FTX, thoughts from Jamie Dimon, JP Morgan CEO and vocal Bitcoin critic (more on him later), regulations around the world, China’s crypto ban and more.
Whilst disagreeing with the bulk of their thoughts about this, I give credit where it is due. The author acknowledged that:
“Some of the technologies associated with crypto – encryption, tokenisation, smart algorithmic contracts and so on – could moreover be of much wider benefit in finance.”
Yes, and the crypto assets affiliated with the blockchains that successfully integrate such use cases, not to mention lightning-fast remittances in a second or two at a fraction of the price of what is currently available, will benefit the most from blockchain and other forms of distributed ledger technology.
The system will become highly automated and trust-less (no third-party needed), thus cutting out several intermediaries…I wonder why they detest crypto, notably a decentralised asset such as Bitcoin, so much…(see smart contracts if you’d like more info).
I won’t lie, but I could not help but laugh that the author made no mention of Ethereum (ETH), not even one altcoin (crypto other than Bitcoin). Alas.
In terms of El Salvador and the Central African Republic (the first two countries to adopt BTC as legal tender), what provokes the ire of many unbanked people in developing countries excluded from the financial system we enjoy here is when Westerners assume what works best for them, despite barely understanding how things work in these places.
I’d rather remain neutral than criticise them, especially when I know sweet FA about their systems. In the meantime, try telling someone in Zimbabwe, Venezuela, Argentina or elsewhere with hyperinflation about what currency works best for them; USD inflation figures leave little to be desired.
Back to Jamie Dimon. This is what he recently said about Bitcoin’s inflation and circulating supply:
“How do you know it’s gonna stop at 21 million? Well, maybe it’s gonna get to 21 million, and Satoshi’s picture is gonna come up and laugh at you all.”
Source? Here you go.
This is what we’re dealing with. For context, here’s the website for people who have no/little idea of how Bitcoin’s fundamentals work (inflation and much more).
So, according to Jamie Dimon, in 2140, when the Bitcoin network is slated to release its 21 million coins into circulation, Satoshi will appear on the screen and say gotcha, now I’m taking all of the Bitcoin!
He should write an adaptation of this for children’s books. We still have no idea if Satoshi Nakamoto is a person or group; perhaps he knows who they are.
Draconian worldwide restrictions, quantum computing, and absolute Bitcoin mining centralisation are genuine concerns, but not insurmountable (at least 2 and 3, and the first option is unlikely), but not Satoshi.
Image by Wit Olszewski on Shutterstock
Back to this article. Dismissing an entire asset class (cryptocurrency/crypto assets) is akin to writing off any company associated with the Internet at the turn of the millennium…you all know how that went for various entities that thrived from the technology.
Another analogy I could use here is to pick a country and say those people are the same as everyone else in other nations across the same continent. It’s entirely BS, I know, but this is how I interpret such superficial and nonsensical assumptions about crypto.
Whilst the masses are still lambasting writing off the entire crypto/blockchain space, I will gladly keep on investing small amounts into reputable cryptos with solid teams behind them, digital assets that are relatively cheap in the grand scheme of things because the average person is too afraid to have even the tiniest amount of exposure to something that COULD turn out to be a game-changer.
It’s called risk and reward; consider this ratio and act accordingly. Of course, you do you.
Some of these harsh crypto critics will be bitter in 10 years when they realise they squandered enormous opportunities by standing on the sidelines.
In the meantime, keep rubbishing the space, and we’ll continue accumulating.
Continuing to disparage the sector and its enthusiasts (“fanboys” amongst other patronising terms over the years) only encourages people to double down. Yes, there are degenerates in this space who tarnish crypto’s reputation and should F off to some remote island, but many of us are rational and forward-thinking to give all of this a go.
Thank you to all the haters for the motivation to remain involved in this space.
Yes, it has flaws, scams, deadwood, etc., and much of this asset class is junk. Nonetheless, the legitimate part of it is worth more than you could ever imagine.
I invest what I can afford to lose, diversify, and make plans for life beyond crypto if this ever fails and vanishes into the ether. I’ll enjoy the ride regardless of how it all pans out.
None of this is financial advice, and I am not a financial advisor.
The opinions expressed within this piece are my own, and I have no affiliation with the author of the quoted article in focus or the associated masthead.
Please do sufficient research before investing in any crypto assets, staking, NFTs and other product affiliated with this space.
If you enjoyed this article, I recommend following my Medium page for regular reports about crypto assets, blockchain technology, and more. Feel free to check out my publication as well, Crypto Insights AU.
Thanks for your support.