On snobbism and subtext…and daily links for 1/12/18
By: Vladislav Ginzburg
Tags: Cryptocurrency, Kfc, Links, Bitcoin, News

cointelegraph links to a study by Bernstein Research today on Bitcoin as a Veblen good, referring to a product that carries a higher price tag relative to the increase in social status that its ownership brings. It got me thinking about whether or not there is a certain snob value to owning a whole Bitcoin.

Of course there’s the unfortunate misunderstanding that takes place when first learning about Bitcoin: “oh, I’m not paying $1400 for that,” before realizing the near infinite divisibility of Bitcoin. Worse yet, the subsequent fallacy that buying a cryptocurrency with a lower value for a single coin is a better deal, either because it may appreciate to the extent bitcoin has, or just the human preference to own a whole something instead of a small part.

Being able to say “I own a bitcoin” or “I own several bitcoins” carries subtext. You get to strongly intimate your financial well-being without saying the words (pre-crypto, this was an art form), as well as communicate that you are tech savvy and “with it” enough to have bought before others. What a visionary!

There’s an economic side to this, created by Bitcoins built-in deflationary structure. As the world draws closer to Bitcoins 21 million limit (don’t hold your breath — at the current rate we’re over a hundred years away), if we assume that the number of people using Bitcoin rises, then also the price will rise. Logically speaking, all other things being equal, very few people will be able to say they own a whole bitcoin in the future. In fact, that’s probably the case now for those buying in for the first time currently.

Owning a whole bitcoin may end up being reserved for the 1%, either because the holder was already there when they bought it, or became elevated there from early adoption and hodling.

Sometimes I’m concerned that all of this could perhaps be off-putting to new people entering the market. The prices, at first glance, are staggering. It’s hard to know what to do when it seems like the voices in this space are in a constant tug of war between calling a top and urging to HODL. Charlatans shilling shitcoins (say that three times fast) are all over twitter, and by the way; blockchain protocols, differences between coins and tokens, tech, white papers…none of these are easy to begin with, but going down the rabbit hole can be so rewarding to anyone interested in tech, economics, philosophy…anything.

It would be very unfortunate if, on top of all that, there emerged a culture of gatekeeping. A gatekeeper is someone who takes it upon themselves to decide who does and does not deserve access to a community (thanks urban dictionary). Can we all just take a collective cringe at the thought of a crypto-bro saying “the space is really complicated” and “just stick to bitcoin, if you do anything”

I leave off this stream of consciousness without a conclusion of any kind, but rather some friendly advice on this Friday afternoon:

Think back to when you were a crypto n00b, or maybe you are one now. Think about whoever helped you understand blockchain technology and cryptocurrencies, and provided helpful advice on how to get started and tips on learning resources without any condescension or ego*

The crypto space is a better place when it’s open, welcoming and helpful. Think of that person, emulate them, and pay it forward to the next newcomer. Global adoption is in everyones best interest.

(*disclaimer: it doesn’t count if that person then offered to take your money and invest it in crypto on your behalf, because they, like, “totally know what they’re doing, and like, made 4x on a sweet recent ICO.” Don’t be that guy.)

On to the weekend! And links…

Speaking of subtext, Steve Mnuchin warns about bitcoin being the new “Swiss bank account”

Well, it’s not a major bank actually using the XRP token..but it’s a start…

The crypto world is especially great when its random, and weird. Enter KFC..