You can never go wrong emulating Milton Friedman once in while. It’s a shame that the guy passed two years prior to the publication of the whitepaper, as it would have been priceless to read or hear from him on the Bitcoin phenomena.
Almost everyone in the ecosystem must know about the legendary talk that the Nobel-winning economist gave at Utah State University in 1977, in which in barely five talking points he dismantled the main misconceptions coming from the socialist academic consortium of the countercultural era.
This article is a humble attempt at bringing tribute to this elegant format, while addressing the most idiotic — and at times damaging — myths in the cryptocurrency world. Here we go.
1: The Diversification Myth (or the Ronnie Moas Myth)
Want to minimize risk, especially on the long term? Get Bitcoin and only Bitcoin. You are buying into a network, not a regular financial asset. Final networks — such as Twitter, Facebook, or the Internet itself — monopolize organically over all lesser beings; add to that the permissionless, open-source quality of crypto-assets and you can predict that BTC will devour all other coins in the ecosystem, both economically and technologically. Even okay projects like Litecoin or Monero, which aim to compensate for where Bitcoin lacks — scalability and privacy, respectively — will ultimatey succumb at the arrival of second-layer implementations like the Lightning Network and Confidential Transations. Oh, but you want some quirky, smart-contractish d-applications? Rootstock and Drivechain got you covered. But I could’ve made 900% more with some shitcoin this year… Yeah, and watch it tank its worth the same percentage after the first ugly-looking bearish candle appears on the obviously-correlated BTC chart. Hail to the King, and know your place.
2: The Practical Coffee Myth (or the Roger Ver Myth)
So are we supposed to believe that a currency with a 50% intraday decline will be used to buy coffee? Reality is that, game-theoretically, the single main incentive for mass adoption is a parabolic price, not everyday usage. High fees and slow transactions even work temporarely in favor of an ascending market cap: as people get in and transfer to cold storage, they immediately perceive a punishment for getting out. Hodling is the natural application in the current stage of Bitcoin — if Max Keiser is correct — and it will continue to be until the stuborn latecomers conceed their bearish positions with the hopes of catching a 100x return — only to see the top reach equilibrium, all alone, buying a grande caramel macchiato (lactose-free) on the Lightning Network like the proper pussies they have been all along.
3: The Social Justice Myth (or the Vitalik Buterin Myth)
Bitcoin is, I’m sorry to say, quite ruthless — succinct. This is part of its Austrian, harmonic beauty. It is a Sowellian trade-off, not a panacean solution to all the world’s problems. It attacks one conundrum: money; it does not pretend to Turing-complete, make whole, tree-hug the great needs of planet Earth. It fucking can’t. You want sound finance? Proof-of-work’s extrinstic restrictions are imperative. You want security and a tiny attack surface? Be a well-groomed, fat and slow, one-trick pony. You want billions of users adopting an S-curve rocketing to the moon, most of whom are the world’s unbanked? Think long, long, software-developer-like term and realize that fancy marketing assignations like Serenity are ultimately ironic and crash into chaos. Bitcoin solved the only strong libertarian hindrance: adoption. Now watch it be right in every other domain.
4: The Experienced Patriarch Myth (or the Peter Schiff Myth)
You know nothing. Don’t get me wrong, I like Peter Schiff’s apocalyptic commentary as much as the next guy. But, yeah, you know nothing. Remember all those martial artists preaching some ancient tradition who got smashed in the early UFC tournaments? Yeah, same thing. You haven’t seen this before. You don’t understand it. Governments will not replace Bitcoin with a new gold-backed cryptocurrency. Regulation is not allowed. And it does have instrinsic value. Stop. Just stop. Is that a conflict of interest I smell? You know, repeat after me, nothing!
5: The Artificial Consensus Myth (or the Jeff Garzik Myth)
Oh, you NYA, you… How many signatures? Brian who? What the fuck is a bitmain? And they met in New York City, you say? ‘Nuff said.