Tag Archives: blockchain

How the Chorus of Crypto Criticisms Discredits Itself

The same rationale used to discredit cryptocurrency markets gets used to defend stock markets

crypto

“Bitcoin gets crushed again” has been trending today. The comment threads mostly contain rants about a crypto  bubble that has burst and a technology that has died for the 249th time. The few rational voices pointing out multi-year patterns get drowned out by an army of internet trolls labeling them wishful thinkers, although often with much harsher language. At the current stage of this most recent “crash”, BTC/USD is up 700% year-over-year and 13,900% over the past five years assuming a $50 price in Q1 2013 and a $7000 price today. By comparison, the Dow is up 200% since 2009, assuming a bottom of 9,000 points and a top of 27,000 points today.

“Dow falls 1,500 points” has also been trending. The comment threads seem to mostly contain defenses of stocks and how this is only a blip on the radar. Those who proclaim it to be the start of a bigger selloff or a bubble bursting are written off as hysterical or ignorant. Long-term trends are cited in order to put things in the context of the big picture. Notice how this reflects a total inversion of the same arguments used against crypto.

 A Tale of Two Asset-Classes

Yet when crypto enthusiasts point out long-term trends, they get labeled delusional zealots incapable of coping with reality. Despite the fact that no historical precedent exists for this new technology or its value relative to fiat currency outside of the past nine years, those who do not understand it feel justified in their predictions and analyses based on a few weeks. And their vitriolic assertions mimic the zealous tone they perceive in those who understand otherwise. Many such critics cannot even tell you what a blockchain is, what fiat currency is, or what a central bank does. This paradigm shift has gone so far over the heads of those who do not care to grasp it that they have formed a chorus of incoherent rambling.

Even the most well-respected financial experts and mainstream publications have joined this chorus, as I mentioned in a piece for GoldStockBull.com in December 2017. Hit pieces on blockchain and crypto often have little to no factual underpinnings. Bitcoinobituaries.com shows this quite well. One of the best articles ever written on this subject was published by Business Insider in August 2017. In it, John McAfee compares the invention of blockchain technology to the invention of agriculture:

 It is like the first pueblo cultures being warned by their past sages that they will perish in their stone houses when it is time for the village to move. They understood that the concept of “moving” had no meaning in their new world. Likewise, what people see as a bitcoin “bubble,” from the perspective of the new paradigm, is merely the predictable and systematic devaluation of fiat currencies that will continue, with obvious ups and downs, until all fiat currencies reach the zero point.

The decline of fiat currencies is almost never mentioned as a factor affecting cryptocurrencies, even though it can be seen as the single most significant variable. Likewise, corporate buybacks are often overlooked with regard to the stock market.

An Irrelevant Reference Point

These criticisms operate based on the same fundamental misunderstanding. The value of an asset, whether it be a stock or cryptocurrency, is often perceived in only one dimension – the price as measured in fiat currency. Underlying fundamentals or potential manipulations are often never considered.

The stock market rise has been fueled in large part by corporate buybacks. An excellent piece on this subject was penned by Forbes contributor Bert Dohmen just weeks before the aforementioned Business Insider piece by McAfee:

 Only 20 stocks accounted for 42% of all buybacks last year. It’s easy to see that manipulation of the EPS of 20 stocks can produce bullish sentiment in the market. The media usually just tells you about the rise in EPS, without telling you what the total profits were. In fact, total profits can decline while the EPS rises. It’s all a game of “smoke and mirrors.” It’s “fool’s gold.” I have been writing about this deceptive financial engineering since 2013. In my January 20, 2014 issue of the Wellington Letter I wrote: “In the U.S., the most significant factor for rising stock prices has been the very large corporate buybacks of their own stocks. Companies have been the biggest stock buyers over the past five years, while every other major, traditional buyer has been on the sell side.”

This is almost comical considering critics cite the lack of regulation in crypto markets as a worrisome issue that opens the door for price manipulation. As if regulated markets such as the Dow, S&P 500, and Nasdaq are somehow immune to such financial engineering. To be fair, a large number of people use cryptocurrencies as a speculative tool for fiat gains. This says nothing of the underlying technology. Nor does it make fiat currencies have more value. It’s yet another indication of the broad lack of understanding of the significance of this invention.

A New Perspective

Bitcoin and currencies like it may be the biggest invention since that of the internet. And blockchain may be the most significant technological advancement for human society since agriculture. That’s what inspires me to write about it. The vast sea of disinformation needs more contrarians.

I’m thankful to have the opportunity to work for companies like Blue Chip Crypto Education and GoldStockBull.com. They allow for publication of factual material relating to blockchain and cryptocurrency. I believe in the stated mission of Blue Chip Crypto, and I know many others do as well: We want to give our readers clear, concise information, and an objective view that would help break through the confusion and misunderstanding surrounding digital currencies. In short, those who dismiss the significance of blockchain have begun to look like those who wrote off the internet as insignificant decades ago. “It’s only for criminals, it will never work, it won’t last, it’s useless”, were all real criticisms against the internet years ago. It’s no coincidence that crypto faces similar scrutiny. Quantum leaps in technological advancement have a tendency to create paradigm shifts that only become widely accepted and understood sometime after their implementation. For crypto, that time is close at hand.

[Note: this article was originally published on LinkedIn at LinkedIn.com/in/bdncontent on

Blockchain brainwashing and built-in negative bias

blockchain brainwash

Blockchain brainwashing

In writing for clients about topics relating to blockchain tech and cryptocurrency in general, I’ve learned a great deal. Not just about the technology, but about human nature. The reason lies in the fact that my job involves doing objective research. This research sheds light on a subject that should not be controversial in the slightest.

Yet somehow, a great many people parrot the negativity found in the press. They do so despite a total lack of knowledge regarding the subject matter of which they speak. And they tend to feel justified and superior in this even when their statements or questions demonstrate such ignorance beyond a shadow of a doubt.
Knowledge means nothing. In today’s world, and perhaps throughout history, feelings control our perceptions. Media influences our perceptions. And our perceptions often lead to opinions based on nothing more than a feeling, suggestion, or general sense of something. This wouldn’t be such a big deal if those opinions didn’t affect our choices. Those choices, influenced by such an emotional process, add up to a collective almost incapable of change.

Absentmindedness of epic proportions

The lack of critical thought being demonstrated is as astonishing as it is alarming. It’s no wonder why society as a whole finds itself mired in so many crises and divisions. Not all of the blame can be placed upon incompetent or corrupt leaders. We the people must shoulder much of the responsibility for our unwillingness to investigate for ourselves, develop informed opinions, and make independent choices. With such a susceptibility to subliminal influence by outside forces, there exists little hope for progress.

Human beings are not rational creatures. We are emotional beings. Our instinct is to use our powers of reason to either rationalize inescapable emotions or to create a reality that avoids unwanted ones. It is a rare individual who chooses to investigate matters on their own absent any pre-conceived notions.

Such people are those who were early adopters of different blockchain-based technologies, whether they be cryptographic coins or other features of platforms too extensive to list. These trail-blazers now have to cope with increasing ridicule from those who do not care to educate themselves on a subject that is, in fact, rather simple. Even those with little to no technical background can understand the basics with ease. Yet it appears most would rather not. It’s easier to believe what feels right or what we first hear. Even when we don’t know how we got that feeling in the first place. Even if it has no basis in reality. And even if it is to the detriment of society as a whole.

The dreaded and evil B word

Back to bitcoin (I hesitate to even use the word). Somehow the entire subject of anything related to blockchain technology has become so shrouded in senseless controversy that it’s hard to even speak of it. I’ve learned to avoid mentioning what it is I most often write about, what my main specialty is, whenever possible.

Somehow, those uninformed on the subject seem to despise bitcoin for reasons they can’t explain or understand. It’s a bubble, it’s fake news, a scam, a nothing-burger, it’s dead, it’s like a magical rainbow with no pot of gold at the end.

Is this just a random occurrence? Is it a coincidence that the exact same tone of the average press article about bitcoin gets parroted by the average person who has no idea what they’re talking about?

Bitcoin bashing has become mainstream

Upon examining most press pieces on the subject, it becomes clear early on that the vast majority use nothing more than hollow rhetoric to make their ridiculous points. The same tired arguments have been raised again and again for years. Rather than get into specifics, simply refer to the website BitcoinObituaries.com. Also see my article entitled “Bitcoin has died 235 times over the last nine years” (the number has now risen to over 245, just days after that article was first published).

The ease with which the average person is influenced by fleeting thoughts and momentary suggestions is not my only concern. As I mention in that article, the short attention span demonstrated by these downright delusional criticisms ought to worry all of us. A certain cycle has been repeated dozens of times over the past four to five years. In a society full of independent thinkers, the cycles would be recognized at some point and opinions would alter to better align with reality. Yet the exact opposite has been happening. With each asylum-resembling repetition, the chorus of weird and ludicrous criticisms grows even stronger.

The definition of insanity is repeating the same action and expecting a different result each time. In a very real and literal sense, this is what critics of cryptocurrency have been demonstrating by repeating the same unfounded points over and over again. This is not an emotionally charged rant (e.g., a bitcoin criticism). This is an observation.

All one needs to do in order to discern this insanity is to comb through online articles and social media posts (both past and present). The FUD forms some kind of a suffocating smog. Fortunately, I spend most of my time reading white papers, lesser-known articles written by developers, and transcriptions of interviews with programmers or experts in the industry. The difference between the two can only be likened to parallel universes – there can be no comparison to speak of. Upon living in the calmer, more rational dimension for some time, one thing becomes clear.

A brighter future in the blockchain

Blockchain technology has the potential to radically transform our whole entire world for the better and has already begun to do so. As John Mcafee has asserted, the invention of the blockchain rivals that of the invention of agriculture in terms of its widespread impact upon human civilization. More individual power and liberty, less fraud and crime, additional financial prosperity and security, and countless other untold benefits lie waiting in the untilled pasture of blockchains galore. Yet ignorance holds back progress as it always has.

Just as blockchain has been exploding toward mass adoption, those with vested interests in the status quo have managed to exercise their influence on the minds of the masses. Banks and large corporations (like those who control corporate Western media) know that they have become obsolete and irrelevant. Their time is done. Their days are numbered and their goose is cooked. This manipulation of public perception represents a last-ditch effort to bide their time. It is little more than the blood-curdled cry and final futile lashings of a dying wild animal.

Everything we have ever known is about to get better. Human beings lie on the cusp of the most dramatic peaceful revolution in the history of our existence. For the first time, we will soon be free of all centralized authorities and their intrinsic corruption, control, and oppression. You can do something to help bring this future closer to the present. Think about what you’re saying about bitcoin and blockchain before you say it. Know the reasons you feel how you do, and ask yourself, am I justified in this, or am I just repeating something I’ve heard somewhere? Investigate. Do your own research. Use your own reason and not someone else’s. Last but not least, buy bitcoin and other cryptos and them it to buy something.