# Believer and Skeptic: on BTC & Crypto. By [Shuuly](https://paragraph.com/@shuuly) · 2025-02-11 --- **Student Edition** Last year, I had one of those late-night debates with a good friend, that just stuck with me. You know the kind — where you start with a simple question and end up diving deep into territory you never expected? Well, this one was about Bitcoin and crypto, and I think I finally managed to capture the essence of our back-and-forth. Whether you're crypto-curious or a complete skeptic, I thought our conversation hit on some of the most common questions (and counterarguments) people have about blockchain technology. So, here's my best attempt at recreating our _“debate” —_ certainly a fun conversation to share and remember ^\_^ `Disclaimer:` `This is just a friendly discussion between two students, not financial advice! While we've done our best to explain things accurately, crypto is a complex and rapidly evolving field. Always do your own research, never invest more than you can afford to lose, and consider consulting financial professionals before making any investment decisions. The views expressed here are our personal opinions based on our understanding at the time of the conversation. Prices, technologies, and regulations in the crypto space can change quickly, so what was true during our chat might be different now.` `P.S. We're explaining this stuff in simple terms, which means we've simplified some technical concepts. If you're planning to get seriously involved with crypto, please dive deeper into the technical details!` ### **Shuuly's Argument for Bitcoin & Crypto** “I can explain why I think Bitcoin and crypto are reliable to some extent. The only unreliable aspect is their fluctuating value, but the underlying system was created as an alternative to banks and traditional money. The goal was to ensure financial accessibility for all and prevent central authorities from acting unethically or exerting excessive control. Crypto continues to improve because people are passionate about it and keep building better solutions on top of each other. I can’t speak for all cryptocurrencies—even Ethereum is somewhat centralised (I can explain why another time)—but Bitcoin was my introduction to blockchain-based currencies, so I can at least explain how it works.” “ #### **Key Points About Bitcoin’s System:** 1. **Fixed Monetary Policy:** * Only **21 million BTC** will ever exist—this is hard-coded and cannot be changed. * All transactions are processed by code, and in Bitcoin, **"code is law"**, ensuring no individual actor can manipulate the system. 2. **Decentralisation & Mining:** * The network is not controlled by a single entity; instead, decentralized actors called **miners** run the code. * Miners process transactions, updating account balances by bundling transactions into **blocks** every ~10 minutes. * If a miner includes an invalid transaction, other miners will reject the block, ensuring integrity. 3. **Transparency & Security:** * Miners have **read access** to all account balances, so you cannot fraudulently spend more than you own. * Since different miners process each transaction, **censorship is nearly impossible**. * Users can create accounts directly through blockchain **(via seed phrases)**, allowing for anonymity. * Your account is secured by a **private key**—no government can seize your assets unless they physically force you to reveal your seed phrase. 4. **Bitcoin Creation & Incentives:** * New BTC is only created through mining—miners compete to solve cryptographic puzzles, and the fastest one to validate a block earns **1 BTC as a reward**. * This ensures BTC issuance is tied to real computational work, making external audits unnecessary.” * * * ### **Friend “V”'s Concerns About Crypto** “I understand how crypto works (I’m a CS student 🤡), but I have concerns about its practicality: 1. **Mining Monopoly & Centralisation Risk:** * Those with greater resources can dominate mining, leading to **centralization within a decentralized system**. * If a majority stakeholder acts maliciously, they could influence transactions. 2. **Ethereum Fork & System Integrity:** * If the blockchain is supposed to be immutable, why can events like the **Ethereum fork** happen? That seems to contradict the principle of unchangeability. 3. **Volatility & Use as a Currency:** * If BTC’s value keeps fluctuating, **businesses won’t accept it as payment**, making it ineffective as a currency. * Crypto’s value depends on people buying it with fiat, meaning its legitimacy is ultimately derived from fiat currency. 4. **Stablecoins & Fiat Dependence:** * Most stablecoins are pegged to **fiat currency or volatile cryptocurrencies**. * Some, like Tether, **literally hold fiat reserves**—doesn’t that contradict crypto’s purpose? 5. **Ease of Use:** * Money should be **simple** to use. Crypto transactions are not as **idiot-proof** as traditional money. 6. **The Problem with Anti-Centralization Thinking:** * Not all centralization is bad. Sometimes, having **someone responsible** is useful. * Many crypto projects **do** have central figures controlling them, but unlike traditional finance, users don’t even get a say in who that is.” * * * ### **Shuuly's Counterarguments** “ 1. **Decentralization ≠ Elimination of Power Dynamics:** * The goal is to **distribute power**, making it difficult for any single entity to exert control. * Miners are incentivized to **follow the code**, and misconduct is either penalized or made **economically unviable**. * Even if mining centralization occurs, the system itself doesn’t cause it—it’s just a result of free-market competition. 2. **Forks Are a Feature, Not a Flaw:** * Forks allow the **community** to choose how they want the blockchain to evolve. * This is an advantage over centralized systems, where users **can’t** create alternative versions of platforms (e.g., imagine keeping Twitter’s social graph but running your own algorithm). 3. **Crypto Isn’t Meant to Be a Stable Currency:** * Cryptos like BTC and ETH should be treated like **stocks or equities**, not traditional money. * BTC = **digital gold** and **borderless, uncensorable payments** * ETH = **a decentralized world computer** * Like tech stocks, they appreciate based on the value they provide. 4. **Stablecoins Are Beneficial, Not Contradictory:** * Stablecoins **help people store wealth in USD** with **near-zero transaction fees** (better than traditional banking). * They provide **self-custody**, meaning users truly own their money rather than relying on banks. 5. **Crypto Is Easier Than Traditional Finance:** * Setting up a crypto wallet and sending transactions is **simpler than opening a bank account** and passing KYC checks. * International transactions and investment opportunities (e.g., in startups) are much easier with crypto. 6. **Centralization Isn't Always Bad, But It Must Be Fair:** * Traditional banking is **an oligopoly** where banks and governments act as a cartel. * Crypto ensures a **free market**, where competition benefits users rather than favoring an elite few.” * * * ### **Friend “V”'s Final Thought** “I’m mostly convinced, except for one thing: If we treat crypto like a **stock** rather than **currency**, doesn’t that **defeat its original purpose**? * A company’s stock has value because it generates **revenue**. * Crypto doesn’t generate revenue—it’s supposed to be a **medium of value transfer**.” * * * Perhaps the most fascinating thing about crypto isn't what it was meant to be, but what it's becoming. While it may not have evolved into the everyday currency Bitcoin's creator envisioned, it's opened up something possibly more valuable: a new way to think about ownership, value, and financial freedom in our digital age. Whether you see crypto as digital gold, a tech investment, or a stepping stone to something we haven't even imagined yet — the revolution isn't in the price charts, but in the possibilities it creates. What matters isn't just where crypto is today, but where we, as a community, choose to take it tomorrow.\\ --- *Originally published on [Shuuly](https://paragraph.com/@shuuly/believer-and-skeptic-on-btc-crypto)*