As blockchain and cryptocurrency continue to disrupt traditional industries, it’s important to understand the players driving this revolutionary technology – the true believers and the opportunistic speculators.

The blockchain and cryptocurrency industries have seen a significant amount of growth and development in recent years, with the market capitalization of the sector reaching over $1.5 trillion in 2021. However, as the industry continues to grow, it is becoming increasingly apparent that there is a battle between two distinct groups of participants – the true believers and the opportunistic speculators. In this paper, we will explore the motivations and goals of these two groups, as well as examples of each within the industry. Additionally, we will examine the unethical behavior that has taken place within the industry and its impact on investors, and discuss the potential for a more ethical and equitable future for blockchain and cryptocurrency.

The True Believers

The true believers in the blockchain and cryptocurrency industry are those who see the potential for these technologies to disrupt traditional systems and create a more decentralized and equitable world. These individuals often have a deep understanding of the technology and its capabilities, and are driven by a belief in its potential to change the world for the better. According to a study conducted by Chainalysis, true believers in the blockchain and cryptocurrency industry are “more likely to use cryptocurrency for long-term investments, use it as a store of value, and hold a diverse portfolio of assets.”

One example of a true believer in the industry is Vitalik Buterin, the co-founder of Ethereum. In a 2014 interview, Buterin stated that “the blockchain is a technology that can be used to build decentralized, trustless systems that can potentially replace many existing institutions and intermediaries.” This statement showcases Buterin’s belief in the potential of blockchain technology to disrupt traditional systems and create a more decentralized world.

Another example of a true believer in the industry is Balaji Srinivasan, a partner at Andreessen Horowitz. Srinivasan has been a vocal advocate for the potential of blockchain and cryptocurrency to create a more equitable world, stating in a 2018 tweet that “crypto is eating the world. It’s the most important technology of our time and it’s going to create new winners and losers.”

The Profit-Driven Speculators

Speculators in the blockchain and cryptocurrency industry are those who are primarily motivated by profit, with little regard for the potential impact of their actions on others. These individuals are often focused on short-term gains and may engage in unethical or illegal activities in order to make a profit. According to a study conducted by the University of Cambridge, self-serving speculators in the blockchain and cryptocurrency industry are “more likely to trade frequently, use leverage, and hold a concentrated portfolio of assets.”

One example of self-serving speculators in the industry is the crypto exchange FTX, which has been accused of engaging in illegal activities and fraudulent practices. The company’s CEO, Sam Bankman-Fried, has been called out for his shady business practices and for manipulating markets in order to make a profit. Another example of self-interested speculators is the 2017 crypto bubble, where prices of digital assets skyrocketed to unprecedented levels. Many investors were caught up in the hype and invested large sums of money in digital assets without fully understanding the technology or the potential risks involved.

Unethical Behavior in the Industry

The blockchain and cryptocurrency industry has seen its fair share of unethical behavior, with some individuals and companies engaging in illegal activities and fraudulent practices in order to make a profit. One example of this is the crypto exchange FTX, which has been accused of wash trading, front-running, and other illegal activities. These actions have a negative impact on the industry as a whole, as they undermine trust in the technology and discourage legitimate investors from participating in the market.

Another example of  in the blockchain and cryptocurrency industry is the 2017 crypto bubble. During this time, prices of digital assets skyrocketed to unprecedented levels, driven by speculation and hype rather than fundamentals. Many investors, both retail and institutional, were caught up in the hype and invested large sums of money into various digital assets without thoroughly researching the underlying projects. As a result, many of these investors lost a significant amount of money when the bubble eventually burst.

This type of behavior not only harms individual investors, but also undermines the credibility of the entire industry. It gives a bad name to the technology and discourage legitimate investors from participating in the market.

Initial coin offerings (ICOs) are another example of unethical behavior in the industry. Many ICOs were launched without proper regulatory oversight or transparency, leading to a significant amount of fraud and scams. Investors were often misled by false promises and whitepapers, and lost a significant amount of money as a result.

It is important to note that not all ICOs were fraudulent or scammy, but the lack of regulations and oversight created an environment where it was easy for bad actors to take advantage of investors. This has led to a decrease in trust in the industry and has hindered the growth of legitimate projects.

The Hope

Despite all these negative aspects, there is hope for the future of the blockchain and cryptocurrency industry. For example, blockchain projects focused on improving lives in developing countries, such as the use of blockchain to provide financial services to individuals without access to traditional banking, are showing great promise.

Additionally, there are blockchain and crypto projects focused on decentralization and equity, such as projects working to create decentralized autonomous organizations (DAOs) to provide a new model for decentralized governance. These projects aim to create a more equitable and decentralized economy, where power and decision-making is distributed among all participants rather than being concentrated in a few individuals or organizations.

Furthermore, blockchain and cryptocurrency have the potential to have a positive impact on society. For example, blockchain technology can help to increase transparency and accountability in various industries, such as supply chain management and voting systems.

Ultimately, the blockchain and cryptocurrency industry is currently facing a battle between true believers and speculators. While the true believers are motivated by a desire to create a better future through the use of blockchain technology, self-serving speculators are motivated by the potential for financial gain. Unfortunately, the actions of individuals or groups with the primary goal of advancing their own interests, rather than the interests of the market or society as a whole can harm the industry and discourage legitimate investors from participating in the market. 

However, there is hope for the future as projects focused on improving lives in developing countries and decentralization and equity are gaining traction. It is important for the industry to adopt ethical principles and for regulators to provide proper oversight in order to promote the growth of legitimate projects and protect investors. The potential of blockchain and cryptocurrency is enormous and it is crucial that the industry works towards creating a better future for all.