The Role of Speculation in Crypto Adoption
During a panel discussion at CCDAS 2023, Bitcoin educator Dan Held shared his perspective on the role of speculation in the adoption of cryptocurrencies. Held, a well-known figure in the crypto landscape, has had a successful career spanning over a decade.
Held played a pivotal role at Kraken Digital Asset Exchange and was instrumental in the success of Interchange, which was acquired by Kraken. He has also made significant impacts at Uber, ChangeTip, and Blockchain.com.
Held believes that speculation has been the primary driving force behind the adoption of Bitcoin and other digital assets. He argues that speculation is a natural human behavior when encountering a new asset class and should not be viewed negatively.
Parallels with Early Equities
Held drew parallels between speculative behavior in the cryptocurrency market and the early days of equities. He mentioned the East India Company’s speculative bubble, which led to a reaction from the Bank of England and a prohibition on new publicly traded companies for a century.
In Held’s view, speculation is prevalent across various asset types and protocols. He questioned the utility of native tokens in decentralized applications, suggesting that most tokens primarily serve as speculative instruments rather than solving consumer problems.
The True Utility of Assets
Held argued that speculation itself serves as a form of utility. He believes that all market activities, including borrowing and lending, are inherently speculative. When people invest in new digital assets, they are engaging in speculative behavior, which Held sees as the true utility of these assets.
Hot Take: Speculation as a Driving Force
According to Dan Held, speculation plays a crucial role in driving the adoption of cryptocurrencies like Bitcoin. He emphasizes that speculation should not be seen as a negative aspect but rather as a natural behavior when encountering a new asset class. Held draws parallels with the early days of equities, highlighting the speculative bubble surrounding the East India Company. He questions the utility of native tokens in decentralized applications and believes that most tokens serve primarily as speculative instruments. Ultimately, Held argues that speculation itself serves as a form of utility and is inherent in all market activities, making it a driving force in the crypto landscape.
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