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- More than 10,000 cryptocurrencies exist in the market.
- As of now, the crypto sector has over 420 million global users.
Why do some people see cryptocurrencies as a future revolution and some as a threat? While these decentralized virtual assets have undoubtedly sent many from rags to riches during its peak, several have lost a fortune too. But the question remains the same, what’s behind their different perceptions? Every person has their vantage point, but how did they develop it in the first place?
More than Finance
Morgan Housel explained perception development in the first chapter of his book, The Psychology of Money, using some analogies. He highlights that people born in different eras hold dissimilar experiences.
He says…
“People that grew up during a bull market will positively look at the stock market, while people that grew up during a crisis will not.”
To establish the reasoning behind this, it explains aptly that the well-heeled raised during the luxuries of the 1970s can never understand the growing pains of the diligence raised during the austerity of The Great Depression (1930s).
This might explain why the Berkshire Hathaway Chair, Warren Buffet, prefers apartments and farms over a virtual asset. The reason being, as he explains, the former can produce rent, while the latter food. The current generation is more tech-driven, believing more in digital realities’ potential.
As technology evolves, so does people’s comfort.
A Gen Z individual will never prefer the struggles of standing at a cash counter over transferring funds through a digital wallet. Decentralized crypto assets are making it simpler than ever by eliminating third parties from the game. Bitcoin (BTC), Ethereum (ETH), and more have become household names, albeit the sector has not become mainstream.
A cryptocurrency simply powers an ecosystem regardless of its nature.
The ones aware of this market know there are over 10,000 of those assets, according to data aggregators like CoinMarketCap and CoinGecko. A large chunk is focused on the financial sector but is not limited to it.
MIOTA, a native digital asset of IOTA, empowers an internet of things (IOT) economy using directed acyclic graphs. Similarly, THETA, the traditional cryptocurrency of Theta Network, fuels a video infrastructure similar to YouTube, enabling users to access blockchain-enabled solutions in the video streaming sector.
Sir W. Clement Stone, an American businessman and philanthropist, once said that we are a product of our environment. While the crypto industry is in its infancy, it has garnered significant support from the latest generations. Future generations will be more inclined towards digital economies with the potential introduction of new virtual currencies in the forthcoming years.
Eras change, and so does the human brain. It will deliver signals based on what we see during our lifetimes, creating a perception of our reality. Cryptocurrencies may never beat fiat currencies as long as governments are at the vanguard, but it is still a viable asset for a virtual economy.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing or trading in crypto assets comes with a risk of financial loss.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
