Tribalism in crypto communities: a reality?

Although regulators consider cryptocurrencies to be a different asset class, some communities in the cryosphere are not shy about going to war with each other. The level of competition there is so high that it can be compared to tribalism.

Some are known to be poisonous, while others are considered dream merchants. On the one hand, this encourages competition in the sector, but on the other hand, some fear that it will slow down the adoption of cryptocurrencies.

Bitcoin: the root of tribalism in the cryptosphere?

Considered the pioneer of cryptocurrencies, bitcoin was created in 2009 by an individual or group known as Satoshi Nakamoto. Since then, other cryptocurrencies have emerged, each with their own characteristics and applications.

However, bitcoin remains the largest and most popular cryptocurrency, with a much higher market capitalization, which today stands at 44%.

Despite the decline during 2022, the number of wallets holding bitcoin increased by 20%. There are now 219 million bitcoin holders, up from 183 million a year ago, according to crypto.com.

This popularity has given rise to a certain tribalism among Bitcoin users. Bitcoin supporters are certain that it is the best and most reliable cryptocurrency, and are reluctant to accept other options.

But it should be noted that this does not apply to all bitcoin users, and there are many bitcoin users and investors who can see the potential of other cryptocurrencies.

Other cryptocurrencies are making more and more room

Over the years, cryptocurrencies have grown in popularity, and there are now over 22,200 according to coinmarketcap. Some of these cryptocurrencies offer its users distinct advantages.

For example, bitcoin is used for online payments and international money transfers. It emphasizes decentralization, security and transparency.

Ethereum, on the other hand, finds utility in the development of smart contracts and other decentralized applications. For programmers, this means they can create automated programs that perform activities based on predefined circumstances. This paves the way for a wide variety of edge uses, such as decentralized marketplaces such as Aave and Uniswap.

Besides bitcoin, there are many other cryptocurrencies, each with their own advantages.

For example, Litecoin has a faster transaction time than Bitcoin, while Monero offers its users greater anonymity!

Be even careful, some cryptocurrencies are just useless or simply copied and pasted from others.

Tribalism: A brake on the adoption of cryptocurrencies?

Cryptocurrencies have grown rapidly in recent years, although their widespread adoption is still in its infancy.

Is the tribalism of certain cryptocurrency communities part of the elements that are holding back adoption? That’s what you think Patient_Delivery_367, a Reddit user, who clearly explains that this could slow the adoption of cryptocurrencies.

In my opinion, one of the main reasons slowing the adoption of cryptocurrencies is tribalism. It should be understood that it is not a winner take all and that a single blockchain will not be able to serve the appetite of the whole world when the adoption comes

Indeed, this type of behavior can discourage potential new users from learning about cryptocurrencies.

Long debates and splits within the community can make cryptocurrencies seem too technical. It can also cause some misunderstanding about the benefits and particular applications of each cryptocurrency.

Tribalism can also lead to investment errors. Users may be tempted to avoid diversifying their portfolios and properly assessing the risks associated with a certain cryptocurrency simply because they are emotionally attached to it.

Moreover, it represents a brake for the developers. The latter may struggle to get constructive feedback from the community if there are heated debates and factions within the crypto sphere.

It should be noted, however, that tribalism is not the only obstacle for cryptocurrencies. The potential user base can be turned off by a number of factors. These include the complexity of the technology, lack of clarity in regulations and security risks.

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