What do you say to that?
Let’s face it, not everyone is going to enthusiastically buy into the idea of cryptocurrency being the future of finance. Why would they? Especially when this unprecedented change is rapidly flipping the financial landscape upside down. We’ve seen skeptics emerge such as investment expert Warren Buffet to the CEO of JPMorgan Chase, Jamie Dimon. As more people begin to denounce cryptocurrency as a fraud or even a pyramid scheme that’s inevitably going to crash, here’s what to say to support the claim that it’s on its way to revolutionizing the world of finance as we know it.
This is not financial investment advice.
This article will touch on key aspects of …
In this article
- About pyramid schemes
- Emergence and growth of crypto
- What financial leaders are saying
- It’s more than just cryptocurrency
Pyramid Scheme?
For anyone who is unaware of what a pyramid scheme actually is, just understand that they are NOT GOOD. Pyramid schemes are sometimes called Ponzi schemes. This type of fraudulent situation is described by Investopedia
“As its name indicates, the pyramid scheme is structured like a pyramid. It typically starts with one person — the initial recruiter — who is on top at the apex of the pyramid.”
As such, you can probably guess why critics mistakenly associate the two with anything crypto-related. The idea of using such innovative technology to disrupt the financial industry seems too good to be true, leading skeptics to inaccurately classify the entire spectrum of cryptocurrency as a pyramid scheme.
It’s Still Too Early
Blockchain technology is just emerging and finally starting to be adopted by an increasing number of businesses and institutions. As it continues to be legitimized, cryptocurrency will naturally follow as one of its many applications. All great ideas start small and face heavy criticism, but once they explode and the skeptics start to silence their objections it will be too late for those that passed up on a great opportunity to be a part of something big. Just look at past ideas that have become today’s biggest success stories like Apple, the internet, or even the stock market. The one thing that these all have in common: early criticism.
Despite the heavy criticism that cryptocurrency is receiving, it’s growing at a rate seen only a few other times. When compared to the growth of the internet, we are only in the year 1994 of what will soon become decades of crypto-based applications that are currently in a very early stage in its own development. So when the person you’re talking to dismisses the idea of cryptocurrency being the future of finance, remind them of how early we are in the development of its own applications.
Wall Street’s Already Getting In
When you think about the financial leaders of the of the world, several institutions and maybe even people come to mind. Listening to what respected people in the field have to say about this is definitely a good way to predict the future of crypto, but remember that actions always speak louder than words. Although many have criticized cryptocurrency as a bubble that’s bound to burst, other leading financial institutions have already adopted its use and are positioning themselves to accommodate a future built on the emergence of cryptocurrency.
Goldman Sachs has proceeded with its plans to open the first Bitcoin trading desk on Wall Street, but they won’t be the only ones according to many financial experts who believe that it’s now just a matter of time before other prominent banks follow.
“This market is so large you can’t ignore it anymore,” says Spencer Bogart — a partner at Blockchain Capital — in an interview with CNBC. He went on to say that “Now we’re seeing large banks roll out trading desks.” What could be a precursor of future adoption, Goldman Sachs’s decision to introduce a Bitcoin trading desk is as legitimate and real as it gets, countering any criticism to its reliability.
It’s More Than Just Cryptocurrency
Anyone who thinks that cryptocurrency is just a scam usually doesn’t understand the potential behind the foundational blockchain technology. Blockchain tech has the potential to revolutionize the world as we know it, and without going into too much detail about what it is and how it works, there are endless possibilities to what it can achieve as it continues to grow. From decreasing fraudulent voters to ensuring that money goes to whoever the intended recipient is, blockchain technology can significantly crack down on corruption and cryptocurrency is just the start. Think about it this way:
In a keynote speech delivered by Jonathan Johnson — President of Medici Ventures — back in March, he excellently described the growing role of blockchain technology and cryptocurrency in today’s society by using an analogy of the early applications of the internet.
In today’s vernacular, one might call email the very first breakthrough application of the internet — but it’s so much more than that. Similarly, some might call Bitcoin the first killer app of the blockchain. Welcome to the future.
Cryptocurrency is just the first of many applications that blockchain technology has, indicating that as more people begin to understand its full capabilities, the more cryptocurrency will become legitimized.
We are living in a unique time in the context of all human history. With a seemingly exponential rate of innovation and advancement, society is moving at an unprecedented pace that is susceptible to more changes than ever. Those unwilling to accept that long-standing institutions are starting to see their end are persistent in keeping things the way that they are. So when someone eventually does tell you — or even try to convince you — that cryptocurrency is more or less a “pyramid scheme” that’s bound to crash, present the facts that are currently taking place across the world. From financial adoption to its early stage in development, cryptocurrency is very well on its way to becoming the future of finance.
Is crypto a Ponzi scheme that will leave the last investors hanging?
Let us know what you think in the comments.