It can get quite awkward when standing around a braai or sitting at a dinner table and people start dishing Bitcoin and cryptocurrencies. For crypto investors and hodlers, this is an uncomfortable situation. Do any of these comments sound familiar? “Bitcoin is a scam”, “I will never put my money into Bitcoin”, “People who buy Bitcoin will lose everything.” Today we look at how to respond to Bitcoin haters.
How to respond to Bitcoin haters: Response 1 – It’s like saying McDonald’s can’t compete with French dining
This was the response from CIO of BlockTower Capital, Ari Paul who responded to Jamie Dimon calling Bitcoin a fraud. It is regarded as one of the best comebacks!
Paul explains his comment by saying one cannot compare McDonald’s to French dining because they both serve different purposes. Those who do not understand what the cryptocurrency industry is really about, are most likely to call Bitcoin a scam. Bitcoin can be seen as a competitor to companies like JP Morgan. These companies charge clients for their ability to provide a storage of wealth in a secure manner. Bitcoin basically does the same, but only better.
Response 2 – Bitcoin and cryptocurrencies are not cash
It is understandable why some might think Bitcoin is a form of cash. Especially when considering all the stories going around about Bitcoin investors turning into millionaires within a day or even a year. Alas, it is a mistake to compare Bitcoin to cash. Even the BitcoinCash token can add to the confusion. Explain that Bitcoin is not cash but a way to store value which can be traded with. Cash is backed by governments and countries whilst cryptos are not. Use the example of the old days when people would exchange or trade animals or other materials. Today, gold and silver are used as a store of value. Bitcoin does the same, so how can it be a scam?
A guest might then ask you: “So why then invest in Bitcoin and not gold?” It is better to invest in Bitcoin since physical gold is a liability. The costs associated with safeguarding gold does not even beat the inflation rate. There are also no drastic price changes in store for Gold whereas you know Bitcoin is on the rise.
Response 3 – Its better than leaving your money in the bank
South African banks offer clients a return of 6%, if you’re lucky. This is followed by a long list of rules should you want to withdraw your money. If that is the case, then you might as well buy Bitcoin. Whether you make R1 000 or R100 000, it’s definitely better than what the banks are offering. You also have access to your funds at any given time. There is no waiting period of 32-days like with banks.
Response 4 – Cash is used more often on the black market than Bitcoin
Surely sometime during the evening, someone will say “Bitcoin is used by criminals, I don’t want to be involved with that.” Sigh. Since cash aka fiat has been around for a longer period than Bitcoin, the number of cases whereby criminals use cash on the black market instead of Bitcoin is far more. Criminals who perform cash-in-transit heists are after fiat, not Bitcoin. That is because Bitcoin is safer than fiat. Thanks to its blockchain tech, all transactions are published on a public ledger. Bitcoin is open sourced. If someone wants to find criminals on the black market who use Bitcoin, all they have to do is look at the transaction history.
Response 5 – Did you buy Bitcoin when it was at its all-time high?
A lot of times, people who call Bitcoin a scam are the ones who bought it when it was at its all-time high. This means that they FOMO and bought when they should not have. The golden rule is to buy low and sell high, otherwise, you will lose. In this case, refer them to the Bitmart Trading Floor Signal Subscription Service. Bitmart Senior Analyst, Rudner de Witt sends well-researched trades to customers. In no time, the ones who are dishing Bitcoin will also be in the green and smiling from ear to ear.