I appreciate your insights on crypto, but I do have some disagreements with you on a number of things you said here. But first, I want to focus on where we agree.

I agree that more and more people are turning to Bitcoin as a safe-haven asset much like they already do for gold during economic uncertainty and recessions. In addition, in places like Venezuela and Turkey, Bitcoin is proving to be a much more stable asset (despite its volatility) than the country’s fiat currencies, and crypto adoption in the developing world is occurring at a rapid rate for reasons like this.

I also agree that Bitcoin and many other cryptos that aren’t really backed by anything can be seen as a sort of Ponzi scheme since any new price appreciation must come from new investors willing to buy at a higher price. However, as I discussed in my first Medium article that compared crypto to stocks, the stock market is arguably much more of a Ponzi scheme. And as I also mentioned in that piece, just because it may be considered a Ponzi scheme doesn’t mean people shouldn’t put their money into, but we just have to be more careful about the terms we use and probably refer to it as “gambling” rather than “investing”.

Lastly, I agree that much of the total Bitcoin supply is hoarded by a select few individuals or exchanges, as this article pointed out that 87% of the supply is held by 1% of wallets. However, I disagree that Bitcoin is too expensive for poor people to own it since Bitcoin allows for fractional ownership unlike many other assets out there. This means that even if you can only afford 0.01 BTC, you can still benefit from potential price appreciation in the future and/or storing your wealth in it if you believe it will continue to act as a safe-haven.

In regards to the inequality in ownership of Bitcoin, I believe this is inevitable as wealthy people with money to throw around will always buy up anything they think will be valuable in the future, so I agree that it doesn’t solve wealth inequality but then again that wasn’t it’s intended purpose. I recommend reading The Bitcoin Standard if you want to understand better why Bitcoin is so attractive in comparison to other assets and can function as “sound money” unlike the current fiat currencies we have (that are also backed by nothing besides faith in the respective governments).

People will always find ways to use new technology like blockchain and crypto for ill purposes, but that doesn’t make the technology bad itself. If you focus too much on the negatives, you’ll lose sight of all the positive developments that are happening in this space as I discuss in my publication, Crypto Spotlight. I firmly believe blockchain and crypto will transform the world much like the internet did and it will be an exciting space to watch for years to come.

Written by

Engineer and climate activist | Founder and Editor-in-Chief of Climate Conscious | Envisioning a brighter future emerging from solutions to the climate crisis

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