Delved into conversations between mainstream investors on crypto
I followed conversations in the Facebook group I mentioned yesterday and participated in them. There was a post by someone that contained a link to an article written by a Bitcoin hodler for a mainstream investment newsletter online. The article recounted all the recent positive developments that have made news recently such as major fintech companies buying bitcoin and getting into the crypto business as well as JP Morgan publicly having turned its coat as well as Paul Tudor saying positive things about crypto.
Recycled false ideas keep cropping up
The comment section revealed how many retail investors are still in the dark regarding how the macro environment has changed in favor of mainstream crypto adoption. But it's also the case that many other are seeing the light.
Naysayers had the following old recycled arguments:
- Bitcoin has no use case
- Blockchain, not Bitcoin
- Bitcoin consumes too much power (not yet, IMO)
- Investors should invest in something useful
- Bitcoin is mined in China where power generation is dirty
- Bitcoin is useless as a payment system and its only use case is speculation. Tulips!
- Bitcoin is only useful to criminals, terrorists and drug dealers
- Bitcoin is too volatile
- Bitcoin is a pyramid scheme
- Bitcoin is developed by nobody and it will come crashing down because of it
- Bitcoin is used in money laundering
Many people were saying mass adoption of Bitcoin will never happen because it is so slow and inefficient.
The gist of my responses, feel free to adopt, improve and deploy
Bitcoin as an inflation hedge and way to direct QE money at one's own way
Bitcoin has guaranteed scarcity. It is decentralized to the extent that not even a great power can shut it down. The proof-of-work algorithm is used to solve the problem of distributed consensus. The low maximum throughput has nothing to do with the value proposition of Bitcoin. Governments are unable to balance their budgets, which forces central banks to print large quantities of money. Bitcoin is used as a receptacle to grab some of the QE money being pumped out in vast quantities by central banks. Quantitative easing generates vast amounts of new money every day people who are not investors in financial assets will not see a glimpse of. Gold is hard money the same way Bitcoin is. Gold is hard money precisely because of its high stock-to-flow ratio. Bitcoin's stock-to-flow ratio doubles every four years. In the year 2024 it will become harder money than gold in that sense.
The false idea of competition between cryptocurrencies
Someone talked about the crypto space following a winner-takes-it-all logic, which I find patently false.
That's because there is no competition between cryptocurrencies. That idea is based on a misuderstanding of the nature of public blockchains. They're nothing like profit-seeking enterprises. Public blockchains are protocols. Forking is a peaceful solution to disagreements between network participants - and also a natural scaling solution. There is plenty of space for different protocols in the world.
I explained it how this year has seen the explosion of the development of cross-chain protocols and also decentralized oracle protocols. Investors have realized the massive value proposition of cross-chain communication. The boom in decentralized oracle chains and DeFi projects are examples of that. I explained how all cross-chain communication grows the internal network effect of the space and the combined value of the entire space in a non-linear fashion as Metcalfe's law would predict.
I pointed out that every public blockchain must have a native cryptocurrency because every decentralized consensus mechanism requires a native coin to function.
Conclusion
It seems that few people will ever have the opportunity to front run large financial institutions and take full advantage of the opportunities investing in Bitcoin afford when the legacy financial system is crumbling. Bitcoin is not the end all be all of crypto investing. Far from it. New opportunities are emerging so fast that it would be a full-time job to keep abreast of all of them.
Posted Using LeoFinance Beta
I applaud your efforts. Unfortunately, it is likely they fell on deaf ears. People get a belief in their head and it is hard to remove. We have to give the mainstream FUDsters credit, they did a number on a lot of people about crypto.
Years ago I wrote how everyone will be here (in crypto) sooner or later. It is only a matter of when they join. Those who get in earlier will likely benefit more, financially, than those who are later to the game.
Now, a couple years down the road, we see how the growth of this industry is progressing, even to the point where CBDCs are a regular topic of conversation.
My how far we have come in a few years.
Posted Using LeoFinance Beta
The conversations I saw also proved that many mainstream people are aware of Bitcoin at this point but the rest of the space is unknown territory to them.
Yeah I think that is tough to argue since it seems that is the way things evolved.
That is also why I believe that the applications will be what draws people in, not the idea of alt-coins, crypto, or whatever. People simply arent going to learn until they have an incentive.
If they are playing a game, and suddenly find themselves with some crypto, then they might look into things further.
Posted Using LeoFinance Beta
People who talk bad about cryptocurrency are those who don't own any (obviously). The beautiful thing is: those people are reducing yearly. Two years ago when I got into crypto via steem/hive there I could count the number of people who knew or used crypto but that has changed drastically in two years--two freaking years.
Bitcoin was an instrument in the fight against police brutality in Nigeria recently after the central bank shut down accounts of people supporting the protest. Bitcoin has been instrumental in Venezuela as well. Crypto has proven itself. Those who want to remain in the dark choose to be in the dark. Their opinions cannot change what's coming. I am glad people like you have the time to explain things of nature. I can't claim to have that much technical knowledge or patience.
Posted Using LeoFinance Beta
I believe we're still early adopters even if you just came here. Most people are still in the dark about what's crypto, blockchain, and how it could benefit all of us. Facebook is one hell of a place where to talk with others. More often than not, everyone's screaming out his thoughts without listening to anyone else.
And as you said - it's really hard to keep up with all the new projects that are coming out. It would take a full-time job and an office full of people.
Posted Using LeoFinance Beta
The quality of discussions depends on the Facebook group.
Also true!
Posted Using LeoFinance Beta
Thanks @markkujantunen for these responses, they're really useful (:
P.S. The Tulip argument always get me every time! xD
Posted Using LeoFinance Beta