Recently I've read Number Go Up by Zeke Faux, an expose on cryptocurrencies focusing on Tether, the stablecoin that is supposed to be tied to the value of USD 1:1.
Zeke Faux, the book's author and a Bloomberg reporter, embarks on a global journey to unravel the lies that underpin the crypto industry. His adventures, which include travelogues of Switzerland and the Bahamas, make him a character in his own narrative. The book covers complex financial details, such as Tether's holdings, which include an array of financial instruments and Chinese commercial paper. Faux's handling of this information showcases the depth of his research and the ethical considerations he maintained during his investigation.
In the dynamic and often bewildering world of crypto, passionate communities, fervent beliefs, and an almost religious zeal for digital currencies, I've started asking: Is crypto a cult?
At first glance, the world of Bitcoin, Ethereum, and other cryptocurrencies does exhibit certain cult-like characteristics:
1. Evangelical Enthusiasm: Crypto enthusiasts are often fiercely passionate. They advocate for the transformative power of cryptocurrencies not just as a financial tool, but as a revolutionary force for societal change. This evangelism often extends beyond mere investment advice, touching upon deeper ideological convictions about decentralization and the failings of traditional financial systems.
2. Us vs. Them Mentality: The crypto community sometimes displays a distinct 'us versus them' attitude, particularly against skeptics and traditional financial institutions. This polarization creates a strong in-group identity, akin to what one might find in more traditional cults.
3. Prophetic Leaders: Figures like Satoshi Nakamoto (Bitcoin's mysterious creator), Vitalik Buterin (co-founder of Ethereum), and other prominent personalities are revered, sometimes to an extent that resembles the cult of personality.
4. Complex Jargon and Ideology: Like many cults, the crypto world has its own complex jargon and set of beliefs, which can be both alluring and alienating. Terms like blockchain, mining, and HODL (hold on for dear life) create a sense of insider knowledge.
However, labeling the entire crypto movement as a cult oversimplifies a much more nuanced picture:
1. Legitimate Technology and Innovation: The technology underpinning cryptocurrencies – blockchain – is a legitimate and potentially transformative innovation. Its applications extend far beyond financial transactions, including supply chain management, digital identities, and more.
2. Diverse Community: The crypto community is not a monolith. It comprises a wide range of individuals with varying degrees of investment, expertise, and belief in the technology's potential. Many are in it for speculative gains, while others genuinely believe in the potential for societal change.
3. Rational Skepticism: Within the crypto community, there exists a healthy degree of skepticism and debate. Not all members blindly follow the latest trend or token; many are critical thinkers and bring rational analysis to their crypto engagements.