Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The crypto market ends the week at a total market capitalization of $2,17 trillion. Bitcoin continues to trade at around $62,300. Ethereum experiences no changes and stagnates at around $2,400. XRP is down by 2%, Solana by 1%, and Dogecoin by 3%. Almost all altcoins are trading in the red, with very few exceptions. The DeFi sector decreased the total value of protocols (TVL) to around…
Negative Criticism That’s Ended Up Promoting Cryptocurrencies
1.4 k views
One attribute that’s always defined as cryptocurrencies is that they’re disruptive. Since they continue to upset the common order within the financial sector, they’ve turned out divisive. Today you have legions of their proponents and opponents alike. Their motivation being the value or lack of what they perceive in them. To their supporters, they are the cure-all that the financial sector has been yearning for. However, their opponents deem them a scandal that shouldn’t have happened.
It shows that cryptocurrencies have continued to hold their own despite the criticisms and objections they face. Some even think that in an ironic twist, the condemnation has turned to be positive for them. Rather than slowing their progress, it has ended up promoting them.
So, which are these criticisms that have ended up promoting cryptocurrencies? Today we take a look at three common objections against cryptos and how they’ve spurred them.
-
They Facilitate Illicit Activity
Charlie Munger doesn’t sugarcoat his dislike for cryptocurrencies and Bitcoin(BTC) in particular. For instance, in a CNBC interview, he described BTC as “worthless artificial gold used in funding illegal activity.” He adds that it’s a scramble and that despite it being a clever science, respectable people should discourage others from using it. Clearly, he doesn’t mince his words when expressing his disdain for the premier crypto.
As he puts it, Munger isn’t the only respectable person that claims cryptos aid illegal activity. It’s thought that Jim Rickards, Bill Gates, and even former British premier Teresa May hold too. Janet Yellen called them as much.
-
Cryptos Don’t Abet Crime.
Cryptos use code to mask individual identities. Privacy coins like Zash and Monero take anonymity further by adopting zero-knowledge protocols, shielding user information from other parties to a transaction.
The question is, does this narrative hold? The simple answer is no. Research into the matter absolves cryptos of this accusation. For instance, a Chainalysis report shows that in 2019 only 2.1% ( about $21.4 billion) of the total crypto transactions supported criminal activity. 2020 saw a sharp decline of the figures to 0.34% ($10 billion of transacted volume).
-
Traditional Finance Enables Crime More
In 2020, the Rand Corporation carried out a study that showed 99% of crypto transactions used centralized exchanges. These exchanges strictly adhere to AML/CFT requirements of the jurisdictions they operate in. That’s beside the mandatory KYC checks that they do on account opening. It concludes that privacy coins don’t enable crime as much.
Other studies indicate that the traditional financial systems abet crimes. The UN, for example, estimates that money laundering and illegal activity account for 2-5% (USD1.6-4 trillion) of the global GDP annually. Compared, proceeds of unlawful activity in crypto are significantly less. A 2020 SWIFT report says as much.
-
They are a Bubble Waiting to Pop
Jim Rickards has some choice words to describe cryptos. He has called them reprehensible and singled BTC for a Ponzi with no one in charge. To him, they are nothing but a fraud.
Warren Buffett and Peter Schiff have a similar take on them. They have both likened cryptos to a bubble whose bottom is itching to drop. Again they’ve called them fool’s gold. When pressed to explain how cryptos have appreciated over time, they’ve used the greater fool theory.
-
Cryptos don’t Generate Value.
To them, cryptos are a speculative scheme. They hold that the initial investors are the ones that profited and that new entrants are just greater fools buying a myth that Hodling will enrich them.
Their thesis is that BTC and other cryptos don’t generate any value. Rickards has gone as far as attributing their meteoritic rise to users painting the tape. Thus, to them and their ilk, the drivers of crypto demand are speculation and FOMO rather than sound investment thought.
-
Fluctuations are Normal for an Emerging Market
There’s no denying that some crypto enthusiasts thrive on its volatility for speculative purposes. That said, some cryptos are defying the suggestions that they’re mere fads that will pass with time. BTC, for instance, has been around for twelve years now. It has experienced booms and bursts and recovered to relative stability from both extremes.
Analysts say the periodic rises and falls that cryptos go through are expected in any evolving market. And cryptos are still young. So in time, the market will correct itself, achieving stability. One thing is sure, though. The negative comments haven’t dampened crypto lovers’ enthusiasm for them.
-
They Lack Intrinsic Value
For skeptics, cryptocurrencies, unlike fiats, lack an intrinsic value. Bill Haris has gone on to say that they don’t have a storage value. Instead, they suggest that fiat has value because there’s government trust behind what we accept as legal tender.
One thing they’re right about is that cryptos don’t have an underlying asset to back them up. Stablecoins are an exception, though. You don’t have gold or any other asset guaranteeing the value of BTC or any other crypto, for that matter.
-
Crypto Infrastructure Adds Value
So, where do digital assets derive value? One is the infrastructure supporting crypto transactions. Think about the Blockchain technology that’s the backbone of all crypto projects. Then there’s the mining infrastructure without which crypto exchanges will grind to a halt.
The supporting infrastructure takes a lot to put up. So assuming that, one may argue that there’s some underlying “asset” behind every crypto. Besides, there’s the whole payments system oiling crypto transactions.
-
Crypto is a Hedge
Secondly, crypto lovers hold that their soaring demand constitutes value. They insist that crypto users find something of value in them, so they continue demanding them. If there weren’t anything of value to them, they wouldn’t have bothered.
Despite them not being a store of value, their increased adoption by corporates would say otherwise. Various industry luminaries share Square’s Jack Dorsey’s stand that cryptos such as BTC help hedge against monetary inflation and devaluation.
Final Thoughts
There are many things we are still learning about cryptocurrencies. One thing that is not in doubt, though, is that they are divisive. The proponents face strong objections from crypto skeptics who think them a scandalous, even fictitious creation. Their opposers have been vocal in showing what they believe to be their shortcomings and calling on the public to shun them.
Btc
Bitcoin
$62.547
price
price
0.84959%
price change
However, things haven’t panned out that way. Despite their consistent negative campaigns against cryptos, the latter has continued to thrive. So it’s not far-fetched to imagine that some of the criticism has ended up promoting cryptocurrencies. Let’s wait to see how this duel pans out in the long run.
Previous
WMA: Bitcoin Climbs Above $45,000 & New Ethereum Update Goes Live
Next
Ethereum Breaks Past $3k, Shows Signs of Better Times
Written by
Adam Robertson
@Adamjr
282 posts
More author posts
Four Reasons Why National Governments Should Hold Bitcoin in their National Reserves
The dawn of cryptos ushered in what we can term as the next step in the evolution of money. Unlike the tradition of fiat currencies, they offer a financial world that lacks a central authority that controls the money-making process. In addition, transaction costs are comparatively cheaper thanks to its peer-to-peer network system. While the positives are in the open for all to see, cryptos' uptake by governments has been, at best, disheartening. This is because they prefer to stick…
4 years ago
Earliest Cryptocurrencies with DeFi-like Characteristics
Decentralized Finance (DeFi) is the center of these crypto transactions. However, DeFi is an innovative niche that many enthusiasts still need to explore fully. Nevertheless, numerous smaller crypto assets with similar characteristics to DeFi tokens already exist. Binance Chain, PancakeSwap, and Uniswap are examples of DeFi platforms that harbor such investments. However, the others operate on their blockchain networks. What are Some DeFi Characteristics DeFi represents an experimental form of finance that does not depend on central intermediaries like banks,…
4 years ago
Which Altcoins Made The News in H1 of 2021
Altcoins are constantly jostling to make a mark in the crypto world. After Bitcoin and Ethereum, the race to be the third cryptocurrency force keeps heating up yearly. Many strong contenders with different use cases promise more than the big two currently offer. As a result, many are making their mark in a big way, for good and not-so-good reasons, as long as they stand out from meme coins that ride the celebrity popularity wave and crash just as fast…
4 years ago
Has El Salvador’s Bitcoin Legal Tender Stance Impacted the Crypto Adoption?
El Salvador is a country in Central America that borders the Pacific Ocean to the north. It also borders Guatemala to the southeast and Honduras to the southwest. It has recently adopted Bitcoin as its legal tender. BTC is now a lawful means of payment in the country. For some time now, many countries have turned their attention to the "future of finance." This act has triggered numerous reactions worldwide. Also, many countries take sides between backing and condemning crypto adoption. Why…
4 years ago
How Profitable is Crypto Yield Farming?
At its core, Yield farming, also known as liquidity harvesting, involves the art of lending cryptocurrency. It provides more lucrative returns than any other cryptocurrency or conventional investment. It's a chance for the bold and risk-averse digital holders to win big. The United States Securities and Exchange Commission (SEC) is considering whether to regulate the process. In lending cryptocurrencies, the owner profits when the coin appreciates. Therefore, yield farming is an incentive that stimulates the adoption and growth of cryptocurrencies. Yield farming…
4 years ago
Which CBDC is Likely to Dominate the Global Financial Markets?
In a volatile crypto market, developers found a way to stabilize trade. The solution comes from the invention of stablecoins, which entered the market in 2014. Stablecoins are digital currencies linked to an asset or a currency. Some of the most popular assets include gold and fiat currencies. The promise of CBDC currencies can lead this evolution to the next step. The US Dollar backs the majority of stablecoins circulating the DeFi ecosystem. Therefore, the value fluctuations of digital currency remain at…
4 years ago
Publish your own article
Guest post article. Guaranteed publishing with just a few clicks
START PUBLISHING ADVERTISE WITH USBrowse categories
Explore trending topics in the crypto community right now.
Bitcoin
SEC Greenlights Multiple Bitcoin ETFs, Signaling Major Leap for Cryptocurrency Markets
The U.S. Securities and Exchange Commission (SEC) has made a landmark decision by approving 11 spot bitcoin exchange-traded funds (ETFs). This move represents a significant moment in the cryptocurrency industry, marking a shift towards greater institutional adoption and accessibility for investors. The approved ETFs include products from major firms such as BlackRock’s iShares Bitcoin Trust, Grayscale Bitcoin Trust, ARK 21Shares Bitcoin ETF, Bitwise Bitcoin ETP Trust, WisdomTree Bitcoin Fund, Fidelity Wise Origin Bitcoin Trust, VanEck Bitcoin Trust, Invesco Galaxy Bitcoin…
Marius Bogdan Dinu 
@bdinu89
@bdinu89
1 year ago 
597 views
Bitcoin Should be Banned in the United States: Charlie Munger
Berkshire Hathaway’s vice chairman, Charlie Munger, called for a ban on cryptocurrency in the United States on Monday, similar to the one in China. In an op-ed published with the Wall Street Journal, Munger argued that Bitcoin isn’t a currency, commodity, or security, but simply a form of gambling “ with a nearly 100% edge for the house. As such, the enactment of a federal law should ban such things from happening. Munger cited the Chinese communist party’s ban on…
2 years ago 1.5 k views
Tesla’s BTC Positions Remained Unchanged in Q4 of 2022
According to a new earning report from automotive manufacturer Tesla, the company did not sell any of its BTC holdings in the fourth quarter of 2022. Amid speculations that the company had traded BTC during the testing bears, CEO Elon Musk revealed it was yet holding on to its BTC stash. Tesla Maintains Holdings After Initial Sell-Off In Q2 of 2022, Tesla opted to sell 75% of all its BTC. The car manufacturer received close to $950M in exchange. Notably,…
2 years ago 1.5 k views
Here’s When Grayscale Debates the SEC in Court on its Bitcoin Spot ETF
The District of Columbia Court of Appeals has marked a date for when Grayscale and the Securities and Exchange Commission (SEC) may present oral arguments regarding the approval of a Bitcoin spot ETF. Each side will present its case at 9:30 am ET on March 7, with the SEC arguing against the product, and Grayscale arguing in favor. Grayscale VS SEC The court date – revealed in a court order filed on Monday according to CNBC – is much earlier…
2 years ago 1.8 k views
Ethereum
Ethereum’s Zhejiang Staking Withdrawal Testnet for Shanghai is Live
At 15:00 UTC on Wednesday, the much-anticipated Zhejiang testnet for staking withdrawal went live on Ethereum’s Beacon chain. Zhejiang will enable the testing of the Ethereum Improvement Proposal (EIP) 4895 which allows for staking withdrawals. This is in preparation for the network’s next major update, the Shanghai hard fork slated to launch sometime in March. Users Can Make Simulated Withdrawals with Zhejiang In a tweet yesterday, DevOps engineer at Ethereum foundation Barnabas Busa gave details about the Zhejiang testnet slated…
2 years ago 1.6 k views
Ethereum Devs Disagree Over Technical Tweak as Shanghai Upgrade Nears
Post-merge Ethereum users have been eagerly awaiting the commencement of the network’s next major upgrade, Shanghai. However, after over 3 months of prep time, it appears the Shanghai rollout isn’t going as smoothly as expected. What Exactly is the Shanghai Upgrade? In September last year, the much-publicized Ethereum Merge also known as the Ethereum 2.0 upgrade went live. Ethereum underwent some significant changes as its consensus mechanism transitioned from proof-of-work to a cost-efficient proof-of-stake system. However, since the Beacon launch…
2 years ago 1.6 k views
FTX Hacker Converts 50k Stolen ETH to BTC
Per a report from blockchain analysis firm Chainalysis, the attacker behind the Nov 11 FTX exploit, is converting the stolen ETH to Bitcoin. There were muted fears the seemingly inexperienced perpetrator could dump all its ETH holdings. On Sunday, the attacker dumped 50k ETH on-chain, with ETH's price dipping by almost 7%. https://twitter.com/chainalysis/status/1594349583416840199?s=20&t=pgvQHeVytI20eKQ1ls9bxw Hacker Moves 50,000 ETH to New Address Over the past week, the perpetrator had been steadily swapping the cryptocurrencies they had carted off for Ether tokens. This…
3 years ago 1.9 k views
Censorship Concerns: 51% of Ethereum Blocks Now OFAC Compliant
According to new data, over half of the blocks on the Ethereum network now reportedly comply with the US Treasury OFAC’s standards. This comes roughly a month after the platform’s monumental merge update. Phasing Out Tornado Cash The Office of Foreign Assets Control is the intelligence and enforcement agency of the US Treasury Department. Indeed, the OFAC administers and enforces US financial sanctions. A prime example of this is the recent, highly-publicized ban on crypto mixer Tornado Cash. According to…
3 years ago 1.8 k views
Trading
How to Leverage Arbitrage Opportunities in Crypto Markets
Cryptocurrency arbitrage has become an increasingly popular investment strategy as the crypto market grows and evolves. Arbitrage involves taking advantage of pricing discrepancies between markets or exchanges to profit. Investors can leverage profit opportunities by understanding cryptocurrency arbitrage while managing associated risks. In this guide, we'll explore cryptocurrency arbitrage and how it works. A Bitcoin-related example will help us illustrate the concepts of this strategy. What is Arbitrage and How Does it Work in Crypto Markets Crypto arbitrage trading is…
2 years ago 3 k views
The Different Types of Copy Trading in Crypto
Are you interested in trading cryptocurrencies but feel intimidated by the complexity of the process? Copy trading is a great way to get into crypto without needing to be an experienced trader. With copy trading, investors can benefit from the experience and knowledge of more experienced traders, allowing even beginners to succeed. How does copy trading work, and which tips do you need to know to succeed? In this article, we'll explore all aspects of copy trading in crypto. What…
2 years ago 1.7 k views
How to Spot an Unsafe Crypto Exchange
Cryptocurrency exchanges have become increasingly popular as they provide a platform for people to buy and sell digital assets. Unfortunately, not all crypto exchanges are safe or reliable. With the rise of cybercrime and fraud, you must learn to spot an unsafe crypto exchange before investing your money. This guide will help beginners identify and avoid potential risks when selecting a cryptocurrency exchange. The Role of Crypto Exchanges on the Digital Assets Market Cryptocurrency exchanges play a crucial role in…
2 years ago 2.2 k views
What Is Grid Trading in Crypto?
Crypto grid trading has become a popular strategy because of its ability to help traders capitalize on market volatility. Grid trading means you can produce consistent profits by taking advantage of price differences in different markets or time frames. By establishing buy and sell orders at predetermined intervals, you can take advantage of these fluctuations in an automated way. This guide will explore the different aspects of grid trading and provide an overview of its benefits, challenges, and more. Through…
2 years ago 1.6 k views
Tech
Introducing una Messenger: A Paradigm Shift in Blockchain Connectivity
The digital landscape is set for an unprecedented transformation with the introduction of una Messenger, the latest innovation from web3 development powerhouse Wemade. This platform represents an evolution of the "PAPYRUS Messenger," serving as the cornerstone of the ambitious "unagi" initiative, aimed at catalyzing the mass adoption of blockchain technology. The "Unbound Networking & Accelerating Growth Initiative" seeks to bridge the divides between diverse blockchain services and networks, heralding a new era of interconnectedness. A New Frontier in Blockchain Communication…
Marius Bogdan Dinu
@bdinu89
@bdinu89
1 year ago 574 views
Bit2Me Champions WEMIX Token in Pioneering European Listing
Bit2Me, Spain's premier virtual asset exchange, has recently broadened the horizons for cryptocurrency enthusiasts by listing WEMIX, the cornerstone token of the WEMIX3.0 blockchain ecosystem. This marks a notable achievement as WEMIX's inaugural venture into the European market, emphasizing the token's role in facilitating a range of blockchain-based activities, from gaming transactions to decentralized finance (DeFi) applications. Launched with the intention to democratize access to WEMIX for the 450 million Spanish speakers around the globe, this strategic move aligns with…
Marius Bogdan Dinu
@bdinu89
@bdinu89
1 year ago 404 views
CryptoVirally Expands with Fresh Crypto Marketing Offers and Cointelegraph Upgrades
In an exciting update for the cryptocurrency marketing landscape, CryptoVirally has announced a series of new entries and enhancements to its already comprehensive range of services. These updates, aimed at providing tailored marketing solutions for crypto projects, include new limited-time offers and expanded options for Cointelegraph publications. Limited Offers: A Game-Changer in Crypto Marketing CryptoVirally's limited offers section presents an enticing opportunity for crypto projects to leverage high-impact marketing services at discounted rates. These offers, available for a limited period,…
Marius Bogdan Dinu
@bdinu89
@bdinu89
1 year ago 465 views
Breaking Boundaries in Blockchain: WEMIX’s ‘una Wallet’ Sets New Standard for Multi-Chain Asset Management
The WEMIX Foundation has unveiled 'una Wallet,' a revolutionary digital wallet designed to offer unparalleled convenience and security in managing digital assets across various blockchain networks. The announcement, made on January 17, 2024, signifies a new era in the seamless integration of multiple blockchain protocols, including Arbitrum, Avalanche, BNB Smart Chain, Ethereum, Kroma, Optimism, Polygon, and WEMIX3.0. 'una Wallet' is more than just a digital wallet; it represents the culmination of WEMIX's innovative efforts in the blockchain space. It serves…
Marius Bogdan Dinu
@bdinu89
@bdinu89
1 year ago 592 views