Examining the Cryptocurrency Hate as Blockchain Token Market Cap is Still Above $200 Billion
Are Crypto Deniers Living in Denial of The Massive Crypto Market?
The arguments against crypto have not changed much since they first began. However, this article seeks to examine whether crypto deniers are living in denial of a massive crypto market. At a Senate banking committee hearing on October 11, the wedge between deniers and crypto supporters grew even bigger.
Differences Between Supporters and Deniers
The differences came out clearly when the research director at Coin Center Peter Van Valkenburg and Dr. Nouriel Roubini came together. These are the two strongest critics of crypto. In a recent article, Norbert J. Michel explained how crypto deniers rely on stale arguments when backed in a corner.
The Argument on Criminal Use
Roubini’s entire argument against crypto is that criminals can use the anonymity of digital coins to their advantage. Thus, crypto can never be allowed to thrive. However, this argument came about 10 years ago when Bitcoin first launched. Since then different experts have argued against it many times.
Crypto Is Better Than Fiat
Crypto cannot be dissociated from criminal activity. However, the same logic can apply to fiat currency. Fiat often changes hands without any record being established. With a public ledger, it is much easier to find criminals.
Van Valkenburg explained this clearly in his testimony:
“Cryptocoins leave a trail, even though they might be anonymous. Their public ledgers are immutable, which means no one can change them. Everyone can see every transaction at all times. Thus, crypto is quite safe compared to fiat when it comes to combating crime.”
The Argument of Price Volatility
Roubini’s compulsive argument against crypto has always been that they show major price volatility. Thus, there be someone who actively influencing the price of crypto at the expense of regular users. Besides that, he suggested that most computers, which verify Bitcoin transactions, are owned by the Chinese and Russian oligopoly. However, he has consistently failed to explain how this happens.
Roubini also thinks that crypto cannot be considered money due to lack of scalability. The arguments by Roubini lean towards crypto being used and controlled by rogue nations.
The Main Problem With Deniers
A major problem with deniers is that they do not understand how crypto or the underlying technology works. Besides that, they fail to study the motive for the creation of crypto. Bitcoin is powered by the blockchain. This secure and immutable ledger is open to public scrutiny. However, these ledgers do not have real-name wallet addresses. Instead, the real identity is hidden behind a public key. The key is simply a string of letters and numbers, which are unique to each address.
The main reason crypto was created was due to the 2008 global financial meltdown. This crisis sent shockwaves globally, although it started in the US. Many lives were ruined and companies shut down. Employees lost jobs and they lost their savings in banks. In the aftermath, it was revealed that large companies had been allowed to bend the rules, which destroyed economies. As a result, Bitcoin was created to give power back to the masses over their finances. It is time for governments to see this technology in a positive light.