The Economist this week published a special article describing the cryptocurrency industry as cockroaches, demonstrating their strong resilience, and discussing various perspectives on the continued robust development of the crypto industry.
Table of Contents:
The “Cockroach Theory” of Cryptocurrencies
Decentralized Networks are Not Easy to Collapse
Some Countries have Started Actively Adopting Cryptocurrencies
Regulations are Gradually Clearing
Despite some traditional financial professionals and regulatory agencies believing that cryptocurrencies are investment tools used by criminals and drug dealers for money laundering and tax evasion, according to data compiled by 99Bitcoins, Bitcoin (BTC) has been declared “dead” 474 times during its more than a decade of growth history. However, these setbacks have not crushed Bitcoin, but rather it has always rebounded strongly and repeatedly reached new highs.
The well-known British journal The Economist this week published a special article analyzing why Bitcoin has risen by over 150% this year and described the cryptocurrency industry as cockroaches from an interesting perspective.
We know that cockroaches have amazing vitality. Research has found that even after being beheaded, they can still survive for a long time. Their flexible exoskeleton can withstand pressures up to 900 times their own body weight, and they are also skilled divers. The Economist believes that the cryptocurrency industry has shown similar resilience to cockroaches when facing numerous challenges.
Although many people strongly dislike cockroaches, they also play an important role in nature (transforming decaying substances into nutrients). Similarly, despite being questioned by many financiers and regulators and being considered tools for money laundering and cyber attacks, cryptocurrencies are gradually becoming indispensable players in the financial field.
Why does the cryptocurrency industry seem invincible? The Economist also puts forward several viewpoints:
First, the indestructibility of cryptocurrencies is rooted in the technology behind them. Digital currencies like Bitcoin and Ethereum, as representatives of cryptocurrencies, are different from traditional companies. They maintain transaction records through decentralized networks, which makes them highly stable and secure. Unless their value drops to zero, this system will not easily collapse.
In some countries, people have begun to use Bitcoin and stablecoins for savings and even payments. El Salvador even accepts Bitcoin as legal tender and has high hopes for the widespread application of cryptocurrencies in future technologies.
At the same time, artists are also actively exploring the possibilities of non-fungible tokens (NFTs), and even former US President Trump has issued NFTs multiple times. The cryptocurrency industry has attracted many smart developers and raised a large amount of funds during its prosperous period. They are committed to developing new applications for blockchain, such as social media platforms or games that allow users to earn while playing. These innovations can bring new vitality to the industry.
Furthermore, recent court rulings on cryptocurrencies in the United States have prompted more mainstream investors and large fund management companies such as BlackRock and Fidelity to show interest in cryptocurrency products, further enhancing the legitimacy and attractiveness of the cryptocurrency market.
In conclusion, The Economist states that although cryptocurrencies are often criticized and face many challenges, they, like cockroaches, demonstrate amazing vitality and play an increasingly important role in the financial ecosystem.
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Tags:
Cryptocurrency
Decentralized Networks
Bitcoin
Cockroach Theory