With over 15,000 cryptocurrencies listed on Coingecko, are you starting to feel overwhelmed by the rapidly expanding world of crypto? Have you overextended yourself trying to stay up-to-date with an unlimited number of ecosystems, blockchains, coins, tokens, NFTs, etc? Don't worry, you're not alone.
Our Tribal Nature
When discussing the vast world of crypto, we cannot omit the fact that humans are tribal by nature, and how that trait has contributed to the diversity in the industry.
You probably feel a strong connection to the land where you grew up, the language you speak, your religion, and the people who look and behave like yourself. All of these factors combine to form our identities, which we are naturally connected to on an emotional level. Throughout history, we have fought to exert and defend our identities.
For whatever reason, God has designed us to be tribal from the family level up to the national level. For example, brother A vs brother B competing in tennis, school A vs school B in basketball, town A vs town B in hockey, nation A's communism vs nation B's capitalism. We naturally put ourselves into an "us vs. them" frame, and this applies equally to cryptocurrency communities in the virtual world.
Bitcoin is Born
Satoshi Nakamoto started the crypto revolution with the launching of Bitcoin, and I feel this pseudonymous developer (who did not pre-mine, nor spend any of his Bitcoin) deserves to be recognized as the person who combined a number of existing technologies to make cryptocurrency possible.
Many people who got involved early with Bitcoin feel a strong sense of belonging to the Bitcoin community, and who wouldn't after surviving non-stop snubbing, ridicule, and attacks from the outside world? Such shared experiences built a strong sense of brotherhood/comradery within a group that faced all odds and came out ahead.
The Rivalries Begin
Considering the threat to Bitcoin's brand, it's understandable that Bitcoiners would quickly label alternative projects as scams. We cannot deny that a lot of the so-called shitcoins simply copied Bitcoin's code and attempted to get rich (in fiat terms) off the hopes and dreams of naive no-coiners.
It was only the projects with good intentions that innovated upon Satoshi's code and formed strong communities that posed any "competition" to Bitcoin. The "shitcoins" were easily ignored until they started to take significant market share from the dominant players, and that's when the rivalries start to form:
- Bitcoin vs. Bitcoin Cash
- Ethereum vs. Ethereum Classic
- Ethereum vs. Binance Smart Chain
- Cosmos vs. Polkadot
- Solana vs. MultiversX
The open-source code behind Bitcoin and most other projects is what makes the crypto space open and permissionless. The potential for new blockchains and tokens is only limited by a founder's ability to innovate and foster a dedicated community.
These virtual tribes are solidified through a combination of wealth generation and human nature. Bitcoiners will tell you fall in line with Bitcoin and reject the alternatives, while Ethereum maxis will tell you other smart contract ecosystems can be ignored, and so on.
These tribes are very similar to Islam, Hinduism, Christianity, etc, and all the sects that have formed underneath them. People often believe in a religion simply because it has become part of their identity.
Future Tribalism
Sometimes I wonder how severe crypto tribalism will get in the future. If we imagine fiat currencies like the US dollar, Euro, Yen, etc. collapsing against cryptocurrencies, and more people starting to accept this "magical internet money" as real money, emotions could get heated.
We could even see some geographic regions banning the use of cryptocurrencies which haven't been officially adopted by the local government. This could lead to a form of "virtual racism", where you will be shunned by the locals for mentioning alternative projects!
In my mind, you become narrow-minded when you blindly reject other projects without considering their merits. You end up in echo chambers, reinforcing your own limiting beliefs, and succumbing to tribalistic behavior.
Benefits of Diversity
Why would we want thousands of different cryptocurrencies, when we could keep it simple and just have one?
By remaining open-minded to alternative projects, you will be exposed to fresh ideas, new innovations, alternative ways of thinking, distinct communities, and different values (decentralization above speed, governance above decree, etc.)
This allows us to tinker and experiment, and attack problems from different angles, trying to figure out what works best.
Above all, a world with thousands of different cryptocurrencies will be more decentralized and resilient. Co-opting Bitcoin would be a challenge in itself, but imagine trying to takeover thousands of different cryptocurrencies, all of which are operating independently of each other.
Inevitable Decentralization
Setting aside the benefits of resilience and being open-minded, why are we destined to a future of hundreds, if not thousands of cryptocurrencies?
Humans are tribal by nature, both in the physical and virtual world. We often find ourselves in an "us vs. them" frame of mind. That means the entire planet will never agree to using a single currency, especially when unstoppable alternatives exist.
The code that Satoshi bestowed upon us is open and permissionless. Anybody can innovate atop Bitcoin's code, enabling a limitless number of decentralized networks, each with its own unique community.
It's natural to feel overwhelmed by it all, but don't be discouraged. Crypto is the future. Dedicate yourself to the communities that resonate with you the most, and find peace with the fact that this technology is going to pull us in a thousand different directions.
Until Next Time...
If you found this article interesting, be sure to check out my other posts on crypto and finance here on the HIVE blockchain. You can also follow me on InLeo for more frequent updates.
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Images courtesy of Venice AI [1]