Decrypting the crypto myth

Bitcoin and its peers fail to deliver on any of the promises boasted on the packaging — be it security or anonymity

Bitcoin and other cryptocurrencies are generally perceived as assets, currencies or both. As impactful as cryptocurrencies’ have been as tools of speculation in current financial markets, the narrative behind the existing technology holds the key to breaking it and most fads down.

Cryptocurrencies are computer-managed ledger entries that can function as money if someone is willing to value these entries as money and use them in transactions.

Cryptocurrencies inherently possess no value whatsoever, but are valued at high prices. The reason why cryptocurrencies are the behemoth instruments seen today lies in the narratives propagated surrounding them.

The primary narrative which appeals to most cryptocurrency enthusiasts is the idea that cryptocurrencies, due to some advanced technical brilliance, excel as a currency compared with a dull old currency note.

Moreover, the benefits boasted by Bitcoin (the most prominent cryptocurrency) promoters are anonymity and security. Additionally, the use case of Bitcoin (and other cryptocurrencies) involves it being used as a currency to purchase goods and services.

Finally, Bitcoin is promoted as a financial asset which can be used as a storehouse of value analogous to gold.

Furthermore, Bitcoin is said to function in the same vein as gold because it is limited in numbers and not a productive asset.