‘We’re a Cult’: Inside Bitcoin’s Shameless Hypefest
Reposting my comment (which is leaf&#x27;d off a dead one):<p>Crypto is &quot;cult by design&quot; in much the way all greater-fool scams are. Namely, since coins are incredibly deflationary, wealth accumulates to a small number of early-stakers whilst the long-tail people buying-in provide their liquidity (&#x2F;cash) so they can exit at an extreme multiple of buy-in.
Everyone is relying on &quot;more fools&quot; to create a longer-tail from their stating position so they can exit higher. Meaning, whatever position you enter at, you have to evangelise like crazy.<p>I dont think anyone has ever yet explained how this is meant to function as a currency. Indeed, crypto people are dead-set on explaining everything except how this works as a currency. Long-and-short of it: extremely deflationary assets are terrible currencies.<p>One reason they&#x27;re terrible is they transfer power over the economic system to early-stakers, as they have all the wealth. This is just feudalism where land=coin. So crypto people, sitting on a lot of coins, who urge adoption arent trying to &quot;free&quot; the economy, they&#x27;re trying to own it.<p>It is just a bigger-fool scam, so it wont work -- at some point the tail won&#x27;t be long enough, and it&#x27;ll collapse (but this could take decades, as some scams do keep finding enough people to sustain them). So I dont think there&#x27;s much danger in it -- but, lets be clear: any corporation which accepts bitcoins is thereby recognising an essentially feudal type of economic power.<p>Most holders of coin-wealth didn&#x27;t earn it, they are taking it from the fools currently buying-in. Accepting crypto as currency, means giving early-stakes a way of exiting the scam at incredible multiples.