Are XRP and Bitcoin True Prejudices and Stereotypes?

Michael Eisink has been a psychologist and coach for 20 years. In 2017 he discovered the wonderful world of crypto and since then he has been infected with the crypto fever. In his columns, he looks at crypto through the eyes of a psychologist.

As with many other subjects, we often have to deal with prejudices or stereotypes in the crypto space. Crypto followers are often seen as some kind of geeky hippies who have anarchist traits and puberty kicking against the established order. Bitcoin (BTC) would also be a bubble that will burst one day that you better stay far away from as Peter Schiff has been preaching for years. Why does prejudice exist and what does it mean for the crypto world?

Stereotypes are effective, but they are not always correct

To begin with, I would like to show you as an example what a prejudice feels like. With this we show how persistent and convincing this will be for most people:

A father and son get into the car and go to the soccer match Ajax-FC Twente. Unfortunately, they don’t make it to the stadium. The car is hit by a large truck, resulting in the son being injured. The ambulance takes the injured son with the father as co-driver to the emergency room, where the trauma surgeon is ready to provide first aid. Seeing who’s on the stretcher, the surgeon says, “Oh no, that’s my son!”

There is a very good chance that this example will confuse you and initially indicate that this is impossible. You start looking for possible explanations, but only when you get the right answer from us will you realize how trapped in that prejudice you are. Read on to find out how it works!

A stereotype is useful because you can automatically form a reasonably accurate picture of a person or subject without using too much brainpower. However, this is a quick and dirty way of thinking and is not always correct. Unfortunately, we are not always aware of the latter.

“Bitcoin is for criminals”

In the case of crypto, a persistent stereotype has emerged that e.g. bitcoin is mainly used by criminals to launder money or to buy drugs and weapons. This picture is very persistent, although it has often been found that only about 1% of bitcoin transactions today contain a malicious component. This is likely to benefit politicians. It makes a good case for blackening bitcoin (bitcoin is usually seen as a danger as opposed to an opportunity) and therefore feeds back on the stereotype of the average fellow, making it less likely to lose steam. Politicians like to cling to the “safety” they associate with the current fiat money system.

A fiat monetary system (fiat is Latin and means “let it be”) like our current system remains viable as long as it is trusted (a fiat system is fiduciary derived from fiducie = trust). Confidence in our current monetary system is so great that it is almost impossible to imagine that a better system could ever exist. It’s so out-of-the-box it’s unimaginable. This works like the puzzle above; you can hardly reach it because it is so different from what you expect. Now, if we tell you that the surgeon is a woman, there’s a very good chance the penny will drop, and it will suddenly make a lot of sense afterwards. This proves the power of a stereotype and shows that the impossible can be possible.

Crypto will establish itself in the financial world

Crypto may establish itself in the financial world and will become an integral part of the business services world in ten years. A notary does not want to believe that part of his (or her!) functions will be taken over by smart contracts, although there is a good chance that this will actually happen. Bitcoin, like precious metals, may have become an important foundation for fiat money and (because the number of bitcoin is effectively limited to 21 million) the system will be deflationary and only increase in value.

In short, are you willing to think outside the box, abandon your stereotypes and invest in bitcoin and other cryptocurrencies? Can you imagine that this could be a potentially very good investment strategy? Stay out of that box and keep your environment “orange pills”. It is for their own benefit! However?

Leave a Comment