Complexity doesn’t sell — “you don’t understand cryptocurrencies” is not an argument

Saying “you just don’t get it” is a persuasion tactic normally held by stakeholders trying to make the sale. It implies that skeptics are too dumb to understand. It persuades people to side with the cool kids so that they can hurl the same arrogant insult to other naysayers. BitCoin and cryptocurrency holders are supposedly brilliant for understanding how they work.

It is analogous to abstract art.  Not everyone is going to “understand” it, so not everyone is going to want it.

Blockchain technology has great potential and can be explained in layman’s terms. It has applications in software for decentralization, but as I’ve explained before, you can’t apply it to enforce scarcity. Furthermore, less technical people will fail to connect its utility to a monetary value.

There are many rational arguments to be made for cryptocurrencies, but touting complexity is not one of them.  It also fails as a persuasion tactic because the public doesn’t want to shovel money into something that cannot be understood by everyone.

People know that money talks. Saying “you just don’t understand” tells them that BitCoin is a lot of technical babble that requires convincing people it is valuable.

You have to explain how BitCoin and cryptocurrencies operate if communication and electrical networks are tampered with or shut down.  You have to explain how you can lose your BitCoin if you don’t back up your devices and secure your wallet. You have to explain mining, cryptocurrency exchanges and how to acquire coins.

Contrast this with people’s understanding of paper money or precious metals: you either have it or you don’t.

BitCoin is now testing the $3,000 level (dropping 10% within the last 24 hours, and 40% from its highs within the past two weeks). It’s interesting to note how much BTC to USD chart resembles a typical bubble.  In this past month we have definitely seen a surge in media attention and non-tech savvy people talking about BitCoin, so have we entered the “Blow Off Phase”?  Will there be a bull trap?  Or are cryptocurrencies really different this time?

 

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