Why do Bitcoin and other cryptocurrencies act more like religions than tech projects? Because anyone can buy into the religion, and actually make money from growing it. Here's why most cryptocurrencies' incentives promote cult-like behavior.
DISCLAIMER!!! I am NOT advocating for crypto to play this role, the opposite actually! I want the tech to be used dispassionately by billions around the world to live better and freer lives. I'm merely making sense of this bizarre social phenomenon.
Crypto is both open to anyone to participate, and has a token at its root that you can buy, whose value fluctuates. This means anyone can buy in and become a member (no gatekeeping), and, more importantly, when other people buy in and join, it profits current members! This is different than a company. Yes, some have cult-like followings, but they have end-user products with utility outside of "membership". Imagine if Starbucks sold company stock instead of coffee. 🤯 Everyone would be trying to recruit new members into the cult!
Cults tend to be different too.The people at the top make all the money from new members. Whereas with crypto, every new "believer" who buys in increases the value for everyone else!
Incentives matter. Everyone follows what makes them money. To make money DIRECTLY off of Bitcoin, you need to either run mining machines, or hope the coin goes up. Most coins with similar incentive structures have similar outcomes. The more ways you can make money in any given crypto's structure (getting more real users, providing liquidity, etc.), the less cult-like the behavior is exhibited. But the opposite is also true: coins with fewer ways to earn have a stronger buy-in cult! 🤑
Of course, you could make money off of any crypto by building a business around it. This is the only sustainable path long-term. But it's so much easier to just buy, shill on social media, and hope to get rich. The easiest path wins out until no one's buying anymore!
TheDesertLynx / Joël Valenzuela
npub1lv…nfuw6
2023-09-10 21:41:32
Author Public Key
npub1lvav9a8a7p70zst3sfplzs6e3swqslzjnppruxlhejezulujkrpq3nfuw6Published at
2023-09-10 21:41:32Event JSON
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"content": "Why do Bitcoin and other cryptocurrencies act more like religions than tech projects? Because anyone can buy into the religion, and actually make money from growing it. Here's why most cryptocurrencies' incentives promote cult-like behavior.\n\nDISCLAIMER!!! I am NOT advocating for crypto to play this role, the opposite actually! I want the tech to be used dispassionately by billions around the world to live better and freer lives. I'm merely making sense of this bizarre social phenomenon.\n\nCrypto is both open to anyone to participate, and has a token at its root that you can buy, whose value fluctuates. This means anyone can buy in and become a member (no gatekeeping), and, more importantly, when other people buy in and join, it profits current members! This is different than a company. Yes, some have cult-like followings, but they have end-user products with utility outside of \"membership\". Imagine if Starbucks sold company stock instead of coffee. 🤯 Everyone would be trying to recruit new members into the cult!\n\nCults tend to be different too.The people at the top make all the money from new members. Whereas with crypto, every new \"believer\" who buys in increases the value for everyone else!\n\nIncentives matter. Everyone follows what makes them money. To make money DIRECTLY off of Bitcoin, you need to either run mining machines, or hope the coin goes up. Most coins with similar incentive structures have similar outcomes. The more ways you can make money in any given crypto's structure (getting more real users, providing liquidity, etc.), the less cult-like the behavior is exhibited. But the opposite is also true: coins with fewer ways to earn have a stronger buy-in cult! 🤑\n\nOf course, you could make money off of any crypto by building a business around it. This is the only sustainable path long-term. But it's so much easier to just buy, shill on social media, and hope to get rich. The easiest path wins out until no one's buying anymore!",
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