Opinion: Bitcoin maximalism is the antithesis to the culture of crypto fraud

In this article, Rizzo responds to Nic Carter’s criticism of “Bitcoin Maximalism,” which, in his view, is a cultural movement that provides a way to protect retail investors from extreme The impact of most fraud in the cryptocurrency market, it is a response to the culture of crypto fraud, so this culture is here to stay and will continue to expand.

Opinion: Bitcoin maximalism is the antithesis to the culture of crypto fraud

“I don’t owe them anything,” he said.

Prominent venture capitalist and essayist Nic Carter recently wrote that a plague is brewing in the land of cryptocurrencies, whose borders are filled with so-called “orthodox” voices, their monogamous love for Bitcoin and their enthusiasm for alternative cryptocurrencies and Hatred of the whole investing culture.

To briefly recap this offensive farce, Carter was well known in the Bitcoin world prior to last week for his creative defense of the protocol mining mechanics and his masterful use of social media. Love, on social media, Carter often gets plaudits from Anonymous as well as supermodels.

But it only takes a relatively small investment to tip this seemingly delicate balance, in this case news that his venture capital firm Castle Island Ventures is involved in funding an identity verification startup that Startups leverage crypto/web3 wallet infrastructure.

This shouldn’t be taken as news, as Carter rightly pointed out in response to the uproar, his work in the industry since 2018 is broader than his support for Bitcoin, including the fund, a well-respected Crypto analytics company (Coin Metrics) and a popular crypto podcast (the Brink). That’s not to say that Carter didn’t choose his image, or that the media didn’t choose his image, his work is often tailored for bitcoin or crypto audiences.

What was Carter’s crime? While Bitcoin’s biggest advocates (Jack Dorsey, Nayib Bukele, and Michael Saylor) have all put all their energy into the protocol, outpacing the power of their brands and countries in support, Carter has spoken out against it through his equity investments. One Line, in a letter , he wrote:

“It is clear that there is a terrible disease that pervades the Bitcoin space. Most Bitcoiners are normal, good people. For the vast majority of people, owning Bitcoin is not their way of life, And rightfully so. But there is a small group of people (a struggling and shrinking group) who are mostly new to Bitcoin and who see Bitcoin as their whole personality and become completely utterly invested in it Emotional.”

He went on to say:

“The moral basis of these people is cartoonish, which might appeal to a toddler, and it’s a terrible binary: that every financial asset except Bitcoin is a scam, except Bitcoin Every blockchain other than that is a scam, doomed to fail.”

In Carter’s view, the problem is clear: “Bitcoin maximalism” is the culprit, and his solution? Totally reject this ideology.

What is Bitcoin Maximalism ?

Of course, the issue in the drama is a deeper narrative of the ongoing culture war in the cryptocurrency industry, with a group of advocates increasingly convinced that Bitcoin is the only invention in the cryptocurrency space.

As Carter points out, the view of this group is that the wider cryptocurrency world is fraudulent, corrupt, and a complex system fueled by greed in which new cryptoassets are issued and then pushed up to Crazy price, finally sold to retail investors.

In other words, so-called “Bitcoin maximalists” reject the mainstream view that cryptoassets are the “future of investing” or that they are a “new asset class.”

Is there a problem with “Bitcoin maximalism” itself? Or just a bunch of fringe followers? Problems with the idea of ​​movement? Or is there a problem with the expression? This is unclear.

Thus, Carter’s argument fundamentally begins on an uneven basis, and his attempt is akin to arguing that “Democrats need to reject the awakened left”, where does one end and the other begins? How can one party survive without the other? Why is this argument made now?

Still, in Carter’s defense, attempts to describe Bitcoin’s maximalism are lacking, and even those who subscribe to its creed reject that it can be described.

This is a point I disagree with.

In short, Bitcoin maximalists believe in the following:

  1. Bitcoin is a computer science invention and the world’s first efficient non-state monetary system. All other crypto assets compete with Bitcoin by virtue of their existence, and none can offer a long-term advantage without trade-offs.
  2. Investing in other cryptoassets is [choose one: wrong, stupid, immoral, uninteresting], and as a form of consumer protection, these cryptoassets should be socially discouraged or ignored for the benefit of others.
  3. Bitcoin is only limited by human ingenuity. Anything that other cryptocurrencies can do, can be done with Bitcoin (or centralized finance alternatives).

Of course, you can argue against the above, and Carter does just that in his article.

Most notably, he made it clear in the piece that he believes the crypto market provides evidence of demand for alternative crypto assets, and believes that “to deny this is to deny reality.”

What crypto assets does Carter support? Why? Again this is unclear as we are left with only one thought that he does not consider other blockchains to be “useless”.

“Just looking at the data, there are more than $100 billion in stablecoins on other blockchains that are objectively useful,” he wrote, adding: “They are used in real-world transactions more than Bitcoin’s. More.”

What again doesn’t make it clear is that Bitcoin maximalism essentially rejects the entire crypto market and its data and considers these constructs to be worthless when in fact it cannot adjudicate on computer science issues.

As for stablecoins, some Bitcoin maximalists do oppose the plan in the face of the prospect of migrating the old regime (government currency) to the crypto world. However, others are trying to rebuild them on Bitcoin according to their ideals. Far from proving, as Carter puts it, that ideology is “not fixed,” it is an affirmation of it.

While these points are good on their own and worth discussing fully, they come as Carter tries to describe himself as a more rational, more data-market-based reading.

Unfortunately, this view may ignore modern Bitcoin maximalism, misinterpreting it as a technical or economic argument, when in fact it is almost entirely a cultural movement.

Why does Bitcoin maximalism exist?

In fact, the biggest problem with Carter’s criticism is his failure to understand what the Bitcoin maximalist movement has accomplished in his demonization of Bitcoin maximalists, a clear worldview in which, Any investor who supports altcoins will be considered a villain.

To understand why someone would support Bitcoin only in the crypto market, you have to understand that these people need to reject short-term incentives to do the opposite.

It’s not exactly a secret, with limited expertise you can easily start a cryptocurrency, crypto hedge fund or crypto startup and make millions overnight. There are basically no criminal lawsuits, and in fact, even failure can lead to huge rewards, with Terra’s Luna and Calculator recently crashing from a “blue-chip crypto asset” to worthless, just one of the most prominent examples.

Mansions in Puerto Rico are full of traditional “crypto builders” who have built nothing, cost investors money and provide no valuable knowledge of the industry.

In this environment, why would you choose to build or support Bitcoin’s continued growth? Develop or expand Bitcoin technology? Or build a Bitcoin service or company? Especially when it’s lucrative to shift failures to retail investors?

Also, why would you use Bitcoin as a currency when there are 30,000 other cryptoassets that could skyrocket or crash overnight, turning your little money into millions?

Bitcoin maximalism has an inherent and valuable answer to all of these questions. It claims that doing these things is immoral, and it imposes social punishment of exclusion and ridicule on those who put their self-interest and welfare above Bitcoin.

So Carter is right that what Bitcoin maximalists usually do is nothing more than use an elaborate form of bullying to express their ideology.

As Carter eloquently points out, the maximalists assert that “investing your time or energy anywhere other than Bitcoin is a misallocation, misinvestment, fraud, or scam.”

He was right on this too, but with inability to understand why the ideology took such a stance, his words were just used to demonize Bitcoin maximalists.

Again and again Carter misses the point by appealing to the idea that this position is impossible or incorrect. To admit that there is even a cryptoasset of value (although it is likely to exist) is to undermine the clarity of its moral structure, and the simplicity and accessibility of its information.

Bitcoin maximalism is expanding

Nonetheless, the most unfortunate description in Carter’s article may be that “Bitcoin maximalism is a fringe, dying, or radical belief.”

To be clear, I consider myself a maximalist and write for a company that only covers Bitcoin. But that’s not always the case.

I was, and still am, a journalist, and I write a lot about cryptocurrencies. Unfortunately, like many Bitcoin maximalists, I find that the crypto market is driven by systems that I cannot support. Insiders have gotten rich, retail investors have been duped, and rogue galleries of scammers are still at large. And efforts to regulate or self-regulate the industry will ultimately only exacerbate the problem.

Bitcoin maximalism exists as the antithesis of, and a response to, this culture.

As proof, we just need to look at a few examples, the most recent being Dave Portnoy ‌, who admitted “lessons learned” and shouldn’t invest in any other crypto asset after bluntly telling viewers to invest in previous crypto Ponzi schemes.

That’s not to say that I don’t foresee the future like Carter does, and as long as there is constructive work to dig out and tune the underlying demand on both sides, there may be alignment between the Bitcoin and cryptocurrency worlds.

In fact, many of the specific technical arguments Carter made, which I also questioned and reported on, have documented answers and uncertainties worth discussing.

But it is clear that Bitcoin users want a special recognition in the space that Bitcoin is the only decentralized cryptocurrency and one of the few to be monetized from scratch in a free and fair market offering One of the cryptocurrencies. Bitcoin maximalists may call on securities regulators to enforce this requirement, but there are other ways.

Bitcoin maximalism also offers a way to protect retail investors from fraud in the vast majority of the cryptocurrency market, encouraging them to hold their funds and exchange them for Bitcoin, these recommendations serve them well At the same time, some stablecoins and institutional lenders in the industry have experienced a serious collapse.

Other than enforcing regulatory protections or advising retail investors to ignore the crypto industry entirely (which is what Bitcoin maximalists do), what is Carter’s solution to this problem?

I want to make it clear that the purpose of this article is not to specifically point out what’s wrong with Carter’s point. Bitcoin maximalism can be an unfriendly worldview for those who subscribe to entrepreneurship, and for those who believe Bitcoin cannot solve real problems.

However, in trying to overturn or subvert it, one must recognize what Bitcoin maximalism has to offer, and most importantly, a clear and affirmative simple message that a monetary system that rewards depositors has substance with Wall Street casinos different, and the crypto industry has only succeeded in absorbing the latter’s culture.

All in all, despite Carter’s opposition to Bitcoin maximalism, it remains a strong and coherent cultural worldview, and it will remain an accessible worldview, told by simplified stories and supported by high-profile converts .

Not satisfied with power? Withdraw funds from the financial system and hold Bitcoin. Want to correct inequality in the world? Then build on the Bitcoin network, expand its reach, and provide a fair alternative that benefits everyone. Want to build a valuable business or company? Do this on Bitcoin and all users get equal benefits.

Sorry, in the face of a day and night cryptocurrency industry whose sole goal seems to be to recreate the worst of Wall Street, I’m going to take a chance with Bitcoin maximalists who are disappointed by the status quo.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/opinion-bitcoin-maximalism-is-the-antithesis-to-the-culture-of-crypto-fraud/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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