Last week, the Financial Times produced an error-strewn and unsurprisingly biased A-Z of crypto. In response, here is part 2 our very own A-Z of crypto (and banking), where we have our say (check out part 1 here).
N – Nocoiner
A term used to describe someone who doesn’t hold any cryptocurrency and who possesses a negative view of the ecosystem. These people are presumed to be envious of the gains made by those who hold tokens, hence their negativity towards crypto. It is a comment typical of the Reddit/4Chan communities rather than serious investors.
O – Obsolete
Cryptocurrencies prove that we don’t need banks, that the general premise of a huge institution holding our money is out of date. Time and time again they have proved themselves incapable of being responsible with it, and crypto has offered us a way to take back control of our own money and do what we want with it.
P – Ponzi Scheme
Buying and selling cryptocurrencies under your own steam is not a Ponzi scheme, but the media loves to proclaim that it is. There are plenty of Ponzi schemes within crypto, just as there are many within traditional markets, and while manipulation may be rampant, anyone who dives into a financial system without doing any research has themselves to blame.
Q – Quantitative Easing
When central banks buy assets, usually government bonds, with money they have created out of thin air, which they then use to buy bonds from investors such as banks or pension funds. Often done at times of financial crisis (Britain introduced it in 2009 and still has it in place ten years later), it can lead to inflation and is one of the last resorts to save a mismanaged economy. Ironically, many crypto-skeptics criticize the ecosystem because they see creating a new token as ‘printing money’.
R – Regulation
Something that is inevitable and that splits the community – to gain respect as a market crypto needs regulation, but allowing governments to regulate crypto would take away from its core values. A battle that will continue for as long as crypto is around.
S – Securities
Are cryptocurrencies securities or aren’t they? No one seems to know, let alone the agency that enforces the respective laws. Until the laws around cryptocurrencies are clarified, or they are classed as a different asset class altogether, there will be continual confusion and a lack of innovation.
T – Tulip Mania
Often likened to the 2017 crypto bull run, Tulip Mania is a byword for FOMO, and indeed it shares some similarities as the events of two years ago, but there are important differences at its core. It is a comparison often trotted out by those clearly have no idea what actually happened.
U – Ulbricht, Ross
Given two life sentences plus 40 years for running the Silk Road website, more than many of the rapists and murderers with whom Ross now spends his days. No victims were ever identified in his court case, which included the judge using evidence of charges that were not part of the case and were eventually dropped.
V – Victory
What victory looks like for cryptocurrency supporters varies. Some want, and expect, the downfall of the entire fiat system, which they believe will leave crypto as the defacto worldwide currency. Some don’t anticipate any such outcome and either trade the market cycles to build up their stack of cash to take to the bank, or hold just a little alongside other assets as a hedge against market downturns.
W – White Collar Crime
White collar crimes include a range of frauds and misdemeanours caused by the abuse of privileged information committed by business and government professionals. It is estimated to cost the United States more than $300 billion annually. Let’s not forget that one person’s actions can, and have, brought down entire banks.
X – XRP
A token that provokes hysteria and derision in equal measure. While it has done more than most to achieve actual adoption, it isn’t strictly speaking a cryptocurrency given its centralization, but it has nevertheless attracted a fanatical following who have put ludicrously high ceilings on its valuation, some even suggesting it can reach $1,000, which would give it a market cap of just over $42 trillion, equal to over half the world’s wealth.
Y – Youth
Research suggests that the age group most interested in cryptocurrencies is the 18-35s. It’s no surprise that those railing against cryptocurrencies are the older generation with their existing ideas of what money is, but with younger people being more financially literate and coming into positions of power, it won’t be long before a financial revolution of sorts gets underway, which cryptocurrency can hopefully benefit from.
Z – Zombies
None of it matters anyway, because when the zombies take over money in all its forms will be rendered useless and the only currency of relevance will be crossbows and bottled water.
We hope you enjoyed our alternative crypto a-z, and the hammer blow is has inevitably dealt the Financial Times and the banking community at large. If the Financial Times itself is reading, this is what you can expect if you step to us.