Many people consider cryptocurrency just another Ponzi scheme, while others believe that Bitcoin (BTC) will save the world. There are always a lot of different opinions about what is happening in the world, and often, people express these opinions just to draw attention to themselves.
The Idea
The idea is simply beautiful — giving control over funds directly to the holder, without the need for a middleman who needs to be trusted. At the same time, everyone is on their own, and if someone loses access to their assets, no one can help them recover them. As always, there are both positive and negative sides. I won’t tell the story of BTC here.
Where Does Value Come From?
If you look closely, global currencies are also a kind of Ponzi scheme. They don’t lose value, or they don’t lose it too significantly, only because people believe in them or need them for some reason. There are many examples of national currencies that later devalued catastrophically. The ruble, for instance. The value of cryptocurrency (and not just any cryptocurrency) lies in the fact that it can be an alternative to the dollar.
Anti-Scenario
In contrast to this beautiful utopia, cryptocurrency has inspired central banks around the world to create “digital currencies.” At first glance, it may seem like no big deal — we all pay with cards today anyway. The main difference with digital currencies is that they can be programmable. Such a function could, for example, give totalitarian countries even greater control over their citizens. At a minimum, it allows for tracking all transactions and even limiting the ability to spend funds. We know, for example, that “Tether” can already block USDT in other people’s wallets today.
House of Cards
Recently, when BTC-ETFs were approved, the hype escalated, and people started talking about digital gold of the 21st century and other nonsense. The biggest risk regarding BTC is the revelation of the true identity of BTC’s creator. Many have tried to present themselves as the creators of BTC, but who wouldn’t want to ride the hype? The creator’s wallet holds more than $60 billion worth of Bitcoin. If they decide to sell their assets, it could trigger a grand domino collapse. Coinbase also mentions this: Coinbase Says Crypto Market Could Fall If Bitcoin Creator Revealed.
No matter how the story unfolds, there will always be those who regret their position and those who manage to make a lot of money. What will happen to the reader of this text if the world’s salvation doesn’t come and everything crashes? Will we fall together with Bitcoin, or will this just be another lesson? Nonetheless, all the prosperity and peace that have been built over such a long time are also very fragile, and everything could quickly fall apart.
Here is curious quote from Bible:
Proverbs 23:4-5
4 — Don’t weary yourself to be rich. In your wisdom, show restraint. 5 — Why do you set your eyes on that which is not? For it certainly sprouts wings like an eagle and flies in the sky.