• Pareidolia is a phenomenon where people see patterns where there aren’t any, often with helpful effects in the wild.
• Association fallacies are used to resist progress and can be seen in crypto, where the actions of one bad actor can overshadow the positive impacts of the technology.
• David Z. Morris of The Giving Block argues that the lower adoption rate of crypto is beneficial, as it allows for more thoughtful and informed decisions to be made.
The world of cryptocurrency has been met with both excitement and trepidation. It has been heralded as a revolutionary technology that can bring about great change, yet it has also been criticized for its lack of adoption, its uncertain legality, and its susceptibility to malicious actors. But what many don’t realize is that the low adoption rate of cryptocurrency can actually be beneficial.
David Z. Morris, co-founder of The Giving Block, explains this concept in his article “There’s Less Money in Crypto, and That’s a Good Thing.” To begin, Morris examines the phenomenon of pareidolia, which is the tendency to see patterns where there are none. In the wild, this can be helpful in detecting predators, but when it comes to decision-making, it can lead to faulty conclusions. Morris then discusses how association fallacies are used to resist progress, and how this can be seen in the crypto space, where one bad actor can undo the progress of the whole industry.
Morris then argues that the lower adoption rate of cryptocurrency is beneficial, as it allows for more thoughtful and informed decisions to be made. He explains that the instinct to see nefarious patterns where there are none, combined with default bias (preferring the devil you know to the devil you don’t), can lead to irrational decisions. With a low adoption rate, people have more time to research, analyze, and explore the potential of cryptocurrency without being overwhelmed by the hype.
Ultimately, Morris believes that cryptocurrency is a technology that can bring about great change and that its lower adoption rate is beneficial, as it allows for more informed decision-making. He argues that while one bad actor can taint the whole industry, the positive impacts of cryptocurrency should be celebrated, as it has already changed the lives of many around the world. By taking the time to carefully research and analyze the technology, we can ensure that the potential of cryptocurrency is realized and that the misdeeds of one don’t deny the future of many.