The Bitcoin Disneyland

Tech entrepreneurs sold you a dream, and you bought it.

“I do think Bitcoin is the first [encrypted money] that has the potential to do something like change the world.” – Peter Thiel

“Paper money is going away” ~ Elon Musk

“A currency that is by the people, for the people” ~ Anonymous Internet User

All this information would make you think – “Wow, a currency for us? The world really is changing for good with all these philanthropists trying to level the field between the common and the elite.”

The Bitcoin narrative has given common people hope, hope that they too will have a say in the financial market decisions. That there would be a currency that is truly inclusive that would somehow magically elevate their status if they put their trust in it.

But the aim has never been utopia. Not a single person on earth wants to truly democratize anything. As humans we demand power, and in 2021 money is power. And when you can’t add any value to society to make that money - you make/buy a crypto coin and shove it down everyone’s throat. You turn it to religion and churn 1000 tweets a day till you gain another follower - one who propagates what you preach.

Satoshi Nakamoto, the creator of Bitcoin, who is worshipped by crypto fans, was no messiah. I would label him an agent of anarchy at best. Sure, blockchain has its numerous advantages, but a currency isn’t one of them.

There is an INSANE amount of volatility in the prices of various cryptocurrencies.

Crypto fanboys would say that since it’s a “transitionary phase” we should suck it up and accept it. Why should we though?

“bEcAuSe gOLd…”

That comparison makes no sense. Most of us weren’t there at the time gold was being accepted as a global standard and had no say in it.

Do better. 

Holders would justify this volatility by saying that bitcoin is the future. Nothing more.

Imagine a very unlikely scenario wherein the world is transacting in Bitcoin and it is the only currency in circulation.

Now I am no expert on how the Bitcoin was coded but SUPPOSE an heir of Satoshi Nakamoto decides to one day create more to bring into circulation or MAYBE make a better coin that would damage Bitcoin’s value. What can anyone do?

Sue him? But how? No one knows his true identity. And even if you do what will he pay with? More bitcoins?

What happens when a central currency system of Bitcoin fails? Whom do you hold accountable? The miners or the exchanges, or do you just walk in jail since you too were a part of this "democratic" system?

“The Government can print money whenever they want to…” is another monologue that a Bitcoin superfan would deliver. 

There are many reasons for increasing money supply, sometimes money supply has to be increased when there is an increase in economic output so as to ensure there is no deflation. Sometimes money supply is increased at times of crisis to help low-income groups recover. And if you don't like the way governments increase money supply you can simply vote them out in the next elections.

There is a reason why Economists don’t support Bitcoin. But sure, go ahead and learn finance from someone running a YouTube channel on “How to grow your money through bitcoin”.

The point being, Bitcoin holders do not deserve their money to be increased. IT IS NOT AN ASSET. Mining crypto too doesn’t really add any value to the economy. You’re just…. coding money? Why should anyone be rewarded for it? We don’t reward governments for increasing the money supply.

And if Bitcoin really was democratic then anyone could mine it. That doesn't happen. It's a complex process and money shouldn't really be complex.

I am also concerned about the socio-cultural inequality that might be created as a result of transition to crypto. Suppose we do somehow trigger a crypto adoption frenzy, it’s the low-income group who would get the worst transaction rate for their fiat (because of being late entrants). It’s not fair to them. There is no democracy here.

Countries with high access to energy resources and computational technology would take a front seat in this hypothetical economic revolution while the ones at back would suffer. Interestingly China has the maximum number of bitcoin miners. African nations have the least. Internet penetration is still abysmal in many places.

So, what does crypto represent?

Democracy? People? No.

Deceit? Very likely.

People have turned the financial market into an amusement park with the emergence of crypto, and it's a Disneyland I wouldn't want to visit.