Why We’re True Believers in Cryptocurrency: Our Top 10 Reasons

At Cyber Capital, we have emersed ourselves in the world of cryptocurrency since 2013 because we believe in its ethos and potential to bring about positive change in the world.

Here are ten reasons why we believe in cryptocurrency and its potential to positively impact society, with examples to illustrate each point:

1. Removal of middlemen increases economic efficiency: By cutting out intermediaries, cryptocurrency transactions can be completed more quickly and at a lower cost. This increase in economic efficiency can lead to a more prosperous society by allowing resources to be allocated more efficiently. For example, a traditional bank transfer from one country to another can take several days and involve high fees. In contrast, a cryptocurrency transfer can be completed almost instantly and at a much lower cost.
2. Censorship resistance empowers all so that history is no longer written by the victors: Cryptocurrency allows for censorship-resistant transactions, meaning that no one can prevent a transaction from occurring. This empowers individuals and allows for the free exchange of ideas, which is essential for the healthy functioning of a society. For example, a government that censors its citizens’ access to the internet would not be able to prevent them from using cryptocurrency to communicate with the outside world.
3. Transparency for institutions: The transparency of cryptocurrency transactions can help counter corruption by making it more difficult for individuals or organizations to hide illicit activities. For example, all cryptocurrency transactions are recorded on a public ledger, making it easier to trace the flow of funds and identify any suspicious activity.
4. Optional privacy for individuals: Cryptocurrency allows individuals to have the option of keeping their financial activities private if they so choose, protecting their rights and freedoms. For example, an individual may decide to use a cryptocurrency that offers privacy features, such as Tornado Cash, to keep their financial transactions private.
5. Self-custody gives everyone the option of unprecedented financial sovereignty: With cryptocurrency, individuals have the option to be their own bank and hold their own assets rather than relying on a traditional financial institution. This gives people greater control over their own financial lives and represents a revolution in personal finance. For example, an individual can store their own cryptocurrency on a hardware wallet, which they control, rather than keeping it in a bank account where the bank has control.
6. Unstoppable platforms no one controls solve corporate overreach & corporatism: Decentralized cryptocurrency platforms are not controlled by any single entity, which means that they cannot be shut down or censored by any one group. This can help solve issues of corporate overreach and corporatism, where a small number of companies hold disproportionate power and influence. For example, a decentralized cryptocurrency platform like Ethereum cannot be shut down by any government or corporation, allowing for the creation of decentralized applications that are not subject to the control of any one entity.
7. The separation of the monetary power from the state; which is analogous to the historic separation of church & state. By separating the power to create and control money from the state, cryptocurrency allows for a greater degree of freedom and protection against tyranny. For example, a government that controls its citizens’ access to money can use that control to exert influence and restrict their freedoms.
8. Decentralization is the natural extension of the separation of powers in political thought: The decentralization of power inherent in cryptocurrency aligns with the principles of the separation of powers, which is a cornerstone of modern democratic systems. For example, just as the legislative, executive and judicial branches of government are separated to prevent any one branch from having too much power, decentralized cryptocurrency networks distribute power among many different nodes, preventing any single entity from having too much control.
9. The anti-fragility of blockchain makes our entire civilization more resilient to collapse: The decentralized and distributed nature of blockchain technology makes it more resistant to failures and disasters. In the event of a natural disaster or another catastrophic event, the blockchain could potentially serve as a way to preserve and rebuild human organization. For example, if a natural disaster destroys a central database or server, a decentralized blockchain system would still be able to function because the data is stored across many different nodes.
10. Aligning incentives toward the public good: By aligning the incentives of individuals and organizations with the greater good, cryptocurrency can help counter conflicts of interest. For example, a cryptocurrency platform that rewards users for contributing to the network in a positive way, such as by validating transactions or reporting bugs, can incentivize users to act in the best interests of the network as a whole rather than just their own self-interest.

Overall, these are the reasons why we believe in cryptocurrency and its potential to bring about positive change in the world. It is what keeps us motivated every day, rain or shine, and gives our work meaning. We are fortunate to be part of this movement, and we believe that we all have a role to play in making the world a better place. We strive to be both evangelists and critics and believe it is important to advocate for whatever falls short of our vision.

Written By Justin Bons and Stephan Brouwer

About the Authors

Justin Bons is the founder and CIO of Cyber Capital; Justin discovered crypto assets in 2013 and immersed himself in this new technology. This led him to actively invest and research cryptocurrencies full-time in 2014 as a generalist with a specialization in the politics and decentralized governance of cryptocurrencies. Over time, with a critical mindset toward evaluating cryptocurrencies including, Justin has developed his own theories on blockchain governance as a major factor to the competitive evolution of cryptocurrencies. Through writing articles, giving lectures, and regularly participating in public debates surrounding cryptocurrencies, he gains insights to further hone the fundamental analysis-based investment strategy that remains his primary focus.

Stephan Brouwer is client relationship manager at Cyber Capital. With his entrepreneurial background, he is responsible for maintaining and building relationships with both existing and new clients.

About Cyber Capital

Cyber Capital, Europe’s oldest cryptocurrency investment fund, is a fund manager that specializes in providing exposure to the crypto-asset markets as an alternative asset class. Cyber Capital is fully registered by the Dutch Authority for the Financial Markets under the AIFMD-light regime and the Dutch Central Bank.

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