John Mac Ghlionn: The Bitcoin Paradox

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“There is no one who is as blind as those who don’t listen.” – Neil Gaiman, “American Gods”

In a recent article for Coin Geek entitled “The BTC Bubble Will Burst Soon,” journalist Patrick Thompson wrote: “The digital currency bubble is coming to an end. Some believe the markets still have a pump ahead of a sharp drop, but regardless, the end is near. “

J. Mac Ghlionn is a performance specialist based in Asia. He’s obsessed with everything crypto-related from amnesia to currencies.

You heard it here folks. The end is near.

But wait, haven’t we heard all of this? Yes, hundreds of times. As I’ve written elsewhere, Satoshi’s idea has died about 400 times since it was first founded. Jesus is said to have risen from the dead once, but the man from Nazareth has nothing on Bitcoin.

You see, Bitcoin is not a bubble, it is a pin. It is the answer to the question of how we, the people, combat financial mismanagement and fiduciary negligence.

On the other hand, it’s a bubble. I call this the Bitcoin Paradox. Let me explain.

2020 was the year Bitcoin became institutional. In November, for example, UK-based juggernaut Ruffer said he had invested more than $ 700 million in Bitcoin. According to a Ruffer statement, the move was a “protective” move, a hedge against monetary inflation.

Residents of epistemic bubbles are only interested in accessing information that reinforces pre-existing beliefs.

More recently, BlackRock, the world’s largest asset manager, joined the world of cryptography and authorized two of its most valuable funds to invest in Bitcoin futures. With more than $ 7.8 trillion in management, the BlackRock move may very well help take Bitcoin to the next level. As you can see, 2021 is very different from 2017, when screams of the “bubble” were more understandable.

In 2021, “bubble” cries are still reasonable. Not because Bitcoin is a financial bubble, but because it’s an epistemic one.

With epistemic bubbles, people access information in a highly biased way, greedily accepting what they want to hear, and ignoring anything that is unpleasant, no matter how accurate the evidence may be.

In short, residents of epistemic bubbles are only interested in accessing information that reinforces pre-existing beliefs. Once the gas problems are resolved, Ethereum can displace Bitcoin. It’s younger, fresher, and has huge potential, possibly more potential than Bitcoin can ever hope for. Some prominent Satoshi followers or Satoshees refuse to accept this very fact.

Author Haziq Ariffin warns, “Epistemic bubbles can be harmful. The people we surround ourselves with tend to be like-minded, so our world is heavily filtered and falsely validates everything we believe in. This, in turn, causes us to increase our confidence in our beliefs every time others around us express their consent. … But it shouldn’t. “

It’s easy to see why. After all, we are in the middle of the bitcoin mania, a deeply psychological phenomenon. Symptoms may include inappropriate euphoria, volatile moods (reflecting the crypto market), hyperactivity (again reflecting the crypto market), and delusions (sometimes reflecting the crypto market).

Jesus (yes, another reference to Jesus) talked about the dangers of false prophets. Although he has never commented on crypto, it is believed that he would warn against false trust.

A decent bitcoin will at least temporarily move out of the bubble and investigate the situation.

Right now, Bitcoin is in a real position of power, but power is intoxicating, and poisoning can affect judgment. When in doubt, just ask Mel Gibson.

A king, no matter how powerful he is, must always be aware of one simple fact – others are always vying for his place. George RR Martin wrote: “The Iron Throne will go to the man who has the power to seize it.”

That “man” seems to be Ethereum. Of course, many Satoshee will make fun of such a statement. However, contrary to popular belief, ignorance is not happiness. There is competition. A decent bitcoin will at least temporarily move out of the bubble and investigate the situation.

There is every possibility that Ethereum and Bitcoin can coexist in a crypto-infused Shangri-La. On the other hand, there is a chance – a slim one, but still a chance – that Ethereum will dethrone Bitcoin. Failure to accept this option can prove fatal. Epistemic ignorance never ends well.