Criticism of Crypto: An Opportunity for Growth and Improvement
Summary:
This article discusses criticisms of the crypto industry, highlighting various detractors such as Warren Buffett and Elizabeth Warren. Dina Tsybulskaya, CEO of eSim Plus, acknowledges some critiques but argues certain criticisms arise from misunderstanding of the technology. Tsybulskaya and other industry figures argue that not only is the crypto field here to stay, but that criticism can help to improve and develop the sector. It also mentions the transparency of crypto, which counters claims of its use in illegal activities. The piece concludes on a hopeful note, anticipating that current problems faced by the industry can be solved over time.
Despite its significant growth over the years, cryptocurrency continues to endure strong criticism, arguably becoming one of the most derided technologies in recent times. Detractors have various reasons for their critique, from alleging that it lacks real-world application to predictions of the market's inevitable collapse. Renowned voices such as investor Warren Buffett, senator Elizabeth Warren, and stockbroker Peter Schiff have been among the vocal critics of the crypto industry.
Dina Tsybulskaya, who heads the Web3 telecommunications firm eSim Plus, admits some arguments made against crypto hold weight. One such argument is the instability of crypto business models. Data from CoinGecko indicates an annual average of 947 cryptocurrency deaths or failures from 2018 to 2022, excluding an alarming 3,322 failures in 2021.
Yet Tsybulskaya believes that not all criticisms are fair. Some may be driven by misinformation or misunderstanding of the tech sector. She likens this situation to the skepticism that surrounded the invention of email before it underwent a few improvements to become comprehensible. Roughly 89% of American adults have heard about Bitcoin according to an October 11 statistic from Exploding Topics, but 24% profess not to understand anything about crypto.
The downfall of crypto exchange FTX and its former high-profile trader Sam Bankman-Fried have fuelled naysayers, but Tsybulskaya reminds that every nascent technology faces stubborn critics and occasionally falls prey to fraudulent behavior, including the early days of the internet which paved the way for new types of scams.
The crypto CEO considers criticism as an opportunity to spot weaknesses in the industry and improve upon them. In her view, the crypto industry has witnessed significant improvement over the past decade, especially in terms of regulations.
Criticisms notwithstanding, Tsybulskaya firmly asserts that "Web3 and crypto are here to stay". The likes of Nick Percoco, the chief security officer at the crypto exchange Kraken, agree with her. According to Percoco, the resilience displayed by crypto in difficult times and its revolutionary potential are among the reasons it keeps enduring attacks.
Percoco counters a recurring claim that crypto aids criminal transactions, saying the tech is fundamentally transparent. He cites the case of last year's Allbridge robbery, where stolen funds were tracked and seized thanks to its public ledger system.
Markus Thielen, an author and head of research and strategy at 10x Research, tips that the crypto field will overcome the criticism it faces once it is done finding a real-world problem it can consistently address. He hopes this will be achieved over time as more front-end developers jump on board to rectify the industry's often-complained-about clunky user experience.
Published At
1/11/2024 5:01:00 PM
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