The Layman & Crypto: Don't Bank On Bitcoin

The reason for this lies in the self-proclaimed USP of cryptocurrencies –

  1. Banks Are Evil
  2. You’ve been Shafted for too long
  3. Cryptocurrencies have no Centralized Authority to Shaft you.

What does the layman takeaway from this?

He’ll be shafted by anonymous folks over the Internet.

Does that sound like trolling?

Because that’s exactly what the layman feels.

How Should You Market Money, then?

Let’s take a leaf out of the books who’ve been in the business of creating and making money useful – the governments.

They never, throughout history talked about the federal currency being the panacea as current crypto-folks peddle their coins.

Governments made sure of two things :

  1. Gave preference to own currency while conducting their business
  2. Installed central banks to oversee money creation to obviate conflicts of interest

In crypto, there are no central banks.

There are issuers /miners and then there are consumers.

Take the case of Bitcoin. Can a bitcoin miner pay his electricity bill in bitcoin?

No.

That’s because electricity departments do not have any incentive to do so.

They’re happy with Fiat money because they think that their money is safer in a bank’s vault (technically on an electronic ledger) than in their own digital wallets.

That’s the same choice that the layman makes.

What cryptocurrencies lack right now is familiarity in the minds of the masses.

We’ve been using fiat since our childhood.

Yes?

But how many of us would let our kids touch our crypto-wallets?

Not even one.

Why?

Because the transactions are irreversible and even the most secure Trezors and Nanos of the world are not baby-proof.

As long as all your crypto holdings can be “deleted” with the push of a button, adoption isn’t going to happen.

That’s is the beauty and ugliness of cryptocurrencies simultaneously.

It’s beautiful that no one knows your crypto-wealth.

It’s ugly that if you lose your private keys – and they are easy to lose, your crypto-wealth is essentially wiped off.

Imagine your pension – funds meeting this fate.

That’s why crypto-adoption is slow.

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