The shiny edge of crypto

Crypto has a tight association with gambling. Like gambling also, the crypto industry has the soaring hype, buzz, and exuberance, but also the lowest lows, including outright fraud.

I can think of a few reasons why the association crypto-gambling grew over time. First, because gamblers want this technology and are fueling its growth. Second, because crypto products went where the users were. There is a third reason as well, namely that crypto indeed solves some pressing human needs such as privacy for personal finances and money transfer. Solving for some timely needs helps with growth – it's just that those needs can intertwine with gambling and illicit activities.

In addition to the above points, however, there is a broader and more useful explanation to the crypto-gambling affinity. This explanation is rooted in psychology (as opposed to the market-based reasons above). It may be slightly more useful from an individual, micro lenses (as opposed to the macro lenses).

The cultural momentum

The cultural element that catalyzed the growth of the association of crypto with gambling is, simply put, that we became better at creating shiny things. Internet services are very nice to look at and very effective at rewarding their user with good feelings. And we are continuing to get better at this.

Paul Graham called this the "acceleration of addictiveness" in an essay written ~15 years ago. In my estimation, he captured with enough accuracy the broader cultural momentum that engulfed most crypto products.

Addictiveness is one-hop away from gambling. Just like Facebook, Twitter, The Times (and many other online services) are playing the game of addictive content, so do crypto products play the game of building beautiful & addictive experiences. The content is different, but the game is the same. This is the zeitgeist.

From this point of view, the addictiveness of crypto products is not so much about their intrinsic nature or the strong guidance of their founders. It is more about the broader landscape of internet businesses. The association with gambling is there, due to the financial aspect. This aspect makes crypto products at the bleeding edge of addictiveness – stronger and more potent than other internet services. Otherwise, crypto products are just online products, subject to the same laws that drive consumer behavior and product growth on the internet.

What do?

I see two angles to look at the above.

1.

Optimism.

As Paul Graham wrote in the essay I cited above, "The next 40 years will bring us some wonderful things." I sympathize with this stance, and I want that set of upcoming wonderful things to include crypto products. (This is feasible because there are plenty of candidates in that set already, despite my focus in this post being on the "shiny" parts of crypto industry.) Regardless of crypto or non-crypto, moderating my use of online time is becoming more difficult. Yet finding the balance that works for me is more and more important, as a consequence of increased agency and responsibility.

2.

Boldness.

Regardless of how much optimism about the future I may have, there is an underlying, meta-level angle. I can't help but wonder the following: If crypto aspires to be counter-culture, then shouldn't builders hope to escape the forces that drive other industries? How much of those forces is nature, and how much is momentum? How much shaping of culture should crypto do, versus how much of mainstream should it adopt?

I strongly believe crypto should do more shaping. This topic has recently become very interesting for me.