Whenever cryptocurrency hits the news cycle, it seems as if glib financial writers can’t wait to express their never-ending schadenfreude. That’s because the mainstream media has been incredibly ineffective at conveying the true state of crypto. Many people sit on the sidelines, and their FOMO (fear of missing out) is reflected in the way they write about Bitcoin and altcoins. They cheer the major dips of Bitcoin, not realizing that it is a completely different animal than the regular stock market. While the traditional stock market has been around for several decades, Bitcoin has been around for one.
There are also many who compare the rise of Bitcoin to that of the internet in the nineties. However, this is an another analogy that oversimplifies the situation. While the internet disrupted the marketing industry in a major way, putting to bed stalwart advertising options such as the Yellow Pages, it did not attempt to disrupt the financial sector or areas such as insurance. Bitcoin and blockchain technology are different in that they seek to replace antiquated systems with decentralized options that are more convenient for people. Although the rate of adoption may be frustrating for those who would like to see crypto take over even faster, the fact is that many big financial companies are starting to realize the power of crypto. With Goldman Sachs and others stepping into the ring and creating crypto bureaus, the sky is the limit.
Those who critique Bitcoin and compare it to other fads, such as Beanie Babies, are bound to be left in the dust—big time. The truth is that crypto has climbed higher and faster, even with its major dips, than any other asset on the regular stock market. People have recognized the power of a currency that’s “fiat”—not tied to a federal government—and now there is no going back. Although the ways in which crypto is used and traded are bound to transform as time goes by, it has become abundantly clear that cryptocurrency is going to become a big part of the future—whether critics like it or not. Those who are truly into crypto are completely and wholly unperturbed by the fact that financial gurus such as Charlie Munger of Berkshire Hathaway have been critical. After all, a new age is dawning—and nothing from the past financial industry really applies to crypto in a meaningful way.