Jackson Palmer, Dogecoin’s Co-Creator, criticized cryptocurrencies earlier this month via Twitter, prompting reactions from crypto enthusiasts and influencers. Now, Coinbase CEO Brian Armstrong had joined the debate by replying to Palmer’s tweet.
In his original tweet, Palmer referred to the reasons why he is not coming back to the cryptocurrency community, a question commonly asked by his followers, by stating:
“After years of studying it, I believe that cryptocurrency is an inherently right-wing, hyper-capitalistic technology built primarily to amplify the wealth of its proponents through a combination of tax avoidance, diminished regulatory oversight, and artificially enforced scarcity.”
He also said that a “powerful cartel of wealthy figures” has evolved with time to reflect the institutions they originally set to replace.
This remark is especially relevant at a time when cryptocurrency purists have pointed out the fallacy of “decentralization” that has plagued protocols and platforms like Uniswap, where small groups control the governance.
Palmer also shared his belief that the crypto market lures people with the promise of getting rich quick, only to throw them under the bus for the benefit of those on the top. While his remarks sparked criticism, his same arguments have been shared in the past by members of the community.
Coinbase CEO Weighs In The Debate
While part of the criticism shared by Palmer seems to be supported by evidence such as 85% of the total Bitcoin circulation supply being held by wallets holding more than 10 BTC and more than 50% by those with more than 5 million USD, there are many arguments in favor of crypto.
Armstrong shared some of these when replying to Palmer’s Tweet, with Coinbase’s CEO stating,
“ All depends on your perspective…if you believe the government should be the solution to people’s problems, then the fiat system with its “controls” has a lot to offer. If you believe government solutions are often inefficient, overpromise/underdeliver, and come with unintended consequences, and that personal responsibility mixed with free markets will create better outcomes for everyone, then crypto is a much-needed breath of fresh air.”
Armstrong also stated the effect that economic freedom has had all over the world during the past decades, leading to “better outcomes for everyone”.
He also said that crypto is not intended to solve wealth inequality but to provide people around the globe with opportunities by creating wealth mobility.
Cryptocurrency Is Neither Good Nor Bad… At Least Not Yet
Cryptocurrency projects and platforms have become increasingly cooperative with regulators and institutional interests, which has become the triumph of economic interests over the principles that gave birth to the technology. https://blockonomi.com/geminis-plan/
However, dismissing the crypto and blockchain ecosystems as a whole based on some of its failings would be wasting a technology that has the potential to change everything.
While cryptocurrencies are seen by many as an “anti-establishment” weapon, they are far from being able to survive without a fiat system to back it up. Crypto is still in an early stage in which a “trial and error” is required to accomplish change.
This is reflected by the creation of Decentralized Finance; NFTs, and new niches that take different approaches to further increase decentralization, censorship resistance, and community governance.
The beauty of cryptocurrency is that it is the result of blockchain and other distributed ledger technologies anyone can take advantage of. As long as people are unsatisfied with the current system, new platforms and approaches will emerge.
Why at this time, crypto is an amalgamation of different shades of gray, black, and white, its future is still undecided.
As Palmer said, it is true that, “New technology can make the world a better place, but not when decoupled from its inherent politics or societal consequences”… But Armstrong also hit the nail on the head when he said that “crypto is simply providing an alternative for people who want more freedom. Everyone can make their own choice, and that is probably a good thing.”