The Multifaceted Nature of the Encryption World: Innovators, Believers, and Speculators

Cryptocurrency is often seen by the outside world as a corner of the internet filled with scams and schemes. However, for those within the industry, cryptocurrency represents a new realm full of opportunities, a digital world built on the foundation of open-source software, with the potential to break the monopolies of traditional finance and tech giants.

So, why do most people think that cryptocurrency is full of scams? If that's the case, why are there still people who remain curious about it? This article will explain the reasons behind this phenomenon through the "encryption industry concentric circle" model and help newcomers better understand the different roles in the encryption world.

encryption concentric circle model

This model simplifies the encryption industry into four concentric circles:

• Innermost Circle: Core Developers
• Inner Circle: encryption believers
• Outer circle: encryption speculators
• Outer Circle: External World

Core Developers: Creators of the encryption World

The core developers at the center are the founders and thinkers of this industry. They have a profound understanding of the problems facing the world today, and how encryption and blockchain technology can address these issues. Their focus is on the philosophical, technological, and moral values that this technology brings to the world.

For example, the anonymous founder of Bitcoin, Satoshi Nakamoto, created the Bitcoin blockchain and then actively withdrew because he knew that a decentralized system does not need a leader.

For example, Ethereum founder Vitalik Buterin is an expert in encryption, philosophy, mathematics, and cryptoeconomics. Vitalik is dedicated to building public goods and social systems that promote global well-being. Despite his considerable wealth, he still lives a simple life, able to survive with just a backpack.

The work of these core developers often does not receive the recognition and rewards it deserves. But they persistently work, simply because they believe in this cause and see a better future. They are the purists at the center of the encryption world, and their leadership and contributions create the allure of the encryption world.

Encryption Followers: Loyal Adherents and Builders

Following the core developers are encryption believers. They firmly believe in the future vision depicted by the core developers and continue to build upon the foundation they have laid.

This circle includes ordinary users, application developers, DAO members, and related enterprises. They develop complementary products and services around the core protocol.

For example, Rune Christensen saw the demand for a decentralized dollar and founded MakerDAO before the concept of DAOs had emerged. Now, billions of DAI have been used as a tool to combat poor government currency management.

For example, Hayden Adams independently developed Uniswap, a free and open asset exchange system, with funding from the Ethereum Foundation.

There is also Cami Russo, who personally experienced the hyperinflation of the Argentine peso and witnessed the value of encryption in solving real-world problems. She founded the encryption media The Defiant, dedicated to spreading industry news.

Anthony Sassano produces videos every day to introduce the latest developments in the Ethereum ecosystem to the world.

These encryption enthusiasts are promoters of the industry. They help spread the work of core developers and application builders, as the latter often focus on technical development and are not good at self-promotion. The existence of encryption enthusiasts stems from their belief in the future of this industry—believing that cryptocurrency is building a better and freer world.

Encryption Speculators: Obstacles to Industry Development

Between the encryption believers and the outside world, there exists a group of encryption speculators. Their presence makes it difficult for the outside to hear the true voices of the industry's real pioneers.

These speculators are good at self-promotion, shaping a grand image. They adopt a polarized strategy, which has proven to be very effective in the political arena. They are well aware that the forefront of encryption holds immense wealth, and their sole purpose for coming here is to seize that wealth.

Cryptocurrency speculators are the main reason for the bad reputation of cryptocurrencies. They are more flamboyant and exaggerated than ordinary practitioners. They are more focused on self-promotion than on technological innovation. They typically do not care about the actual value of the technology being built; they only care about how much profit they can make, even if that means using unsustainable or unethical methods.

Some of their common characteristics include:

• Arrogant personality, boastful, sometimes even with a bullying nature.
• Having a fervent small group of followers, forming some sort of personal cult.
• Promoting fundamentally unsustainable products or systems

Some typical cases include:

Alex Mashinsky founded the centralized lending platform Celsius, claiming to be DeFi while operating like a traditional bank, and ultimately collapsed due to irresponsible leverage trading strategies.

The Wonderland ecosystem established by Daniele Sesta had a large group of fervent followers, only to be ultimately exposed as a Ponzi scheme.

The Terra project founded by Do Kwon caused a capital loss of 50 billion dollars in a short period of time, making it one of the largest capital destruction events in the history of encryption.

How to Deal with the Presence of Speculators?

To some extent, we must coexist with speculators. While adhering to the value of decentralization, this is an inevitable cost.

Just like the internet, cryptocurrency is a public infrastructure that anyone can freely use without permission. This openness makes it difficult to prevent speculators.

But we are not without a plan. Education is an effective weapon against speculators. As an industry, we need to better reach the public before the speculators do. Although explaining the complexities of encryption technology is more challenging compared to the exaggerated marketing tactics, it is necessary.

Fortunately, most people now possess basic discernment skills, allowing them to avoid junk information and viruses on the internet. It is believed that as time goes by, people's understanding of the encryption field will continue to improve.