The question of what crypto represents to people took a turn for me while listing to a podcast with MetaKovan, the buyer of the $69 million Beeple NFT. In the This Week In Startups podcast MetaKovan was discussing what crypto means to him and what his overall view of crypto was. MetaKovan’s reason for purchasing crypto assets is not one that most people have had to do personally. He was forced into holding a large amount of crypto due to the capital restrictions that are in place in his home country. He was worried that it might be possible for the government to take control of some of his funds if he left it all in the fiat currency. Utilizing crypto to store his money without regard for currency controls forced him to place a large amount of his net worth into crypto, but gave him the freedom of open borders that comes with crypto. The ideas such as open borders, innovation, competition, and a melting pot of ideas that crypto has come to represent where the same ideas that the idea of “America” was built on.
Crypto and the founding ideas of America strike a lot of the same cornerstones. America was built on the idea of a melting pot of people in one place will bring a melting pot of ideas along with it. The ideas brought would spur innovation and thus creating a better society for all citizens. Many people might argue that the melting pot idea has slowly deteriorated in America with new immigration controls that have been put into place. Creating a melting pot of people and ideas has become harder to obtain inside the borders of America, but crypto has taken a similar digital approach and has run with it. Crytpo has created a melting pot of both people and ideas that have given way to the over 10,000 cryptocurrencies that exist currently. Most of these cryptos might end up being worthless, but each one represents an idea of its creators to what currency means. Cryptos such as Etherum present a smart contract blockchain approach to solving many financial problems in our centralized finance world. Other cryptocurrencies represent “joke” or “meme” currencies such as Dogecoin. The ability that anyone can build something to represent their beliefs and ideas was what America was supposed to built on. Anyone with an idea should be allowed to pursue the idea with the risk of it either taking hold or burning to the ground. This has become harder and harder to do in America, but central in the creation of the crypto world. Anyone who is willing to learn can launch their own crypto, make a decentralized platform for people, or launch a new idea that no one has thought of relatively easily. The people with the idea they want to launch can be located anywhere in the world, broadening the size of the melting pot will bring people that have lived in different environments all into one space to make competitive platforms.
The competition in crypto is also something that the idea of America was built on but has given way to large-size bailouts when the competition goes sour. In the crypto world, there is no bailout that will come in and save the day if a company screws up or is beat by competing platforms. As we saw in 2014 with the Mt Gox hack, if you screw up in this space there is no backstop in place to come save you. Mt Gox at the time was handling over 70% of bitcoin transactions when it had its bitcoin stolen. If a company that size that handled fiat transactions had been hacked and declared bankruptcy certainly some govment agency would have stepped in to soften the blow of the system. In the cryto world this would not occur. Competition means winners and losers. Crypto and the platforms built on various blockchain do a good job of promoting this idea. Transparncy of information is a main point for blockchain platforms allowing users to monitor the health of the platforms. Allowing information to be easily assiable to consumers promotes that competion in the space since users will be able to search for a platforms that meets their needs. Again this draw parrells to the idea America was built on allowing competition. True competition that is found is the current crypto space is what America hoped to produce; competition that is good for both business growth and for the consumer or end user.
Overall the idea’s of the crypto community draw a lot of parrells to the ideas that America was originally founded on. Competiton and a diverse set of people and ideas is what America set out to form, but has had shortcomings in both areas. Crypto brings a 21st century utilization of these ideas and in the processes has been able to create new currencies and platforms that have benefits for all users.