The money must be paid back. This is why we always tell everyone in our articles to never trust anyone in the cryptocurrency circle. During a bull market, everyone around you seems like a living Buddha, treating you to meals and drinks, and you believe you have made true friends. However, once a bear market hits, they will suck your blood and then disappear. Once you lend money in the crypto space, even if you know the other party's real information, it’s basically impossible to get it back. I get increasingly angry writing this; usually, I am very nice, donating to the United Nations and receiving certificates, which can be said to boost my prestige. But then, after owing me tens of thousands, they become unreachable. Of course, it's not because of my few tens of thousands that they disappear, but because they are out in the circle borrowing money from everyone, racking up millions in debt. The money must be paid back. So, everyone in the crypto space must not lend money to others; it’s easy to lend, but getting it back is extremely difficult. There are also some people in the crypto space who are usually very poor, never picking up the bill, yet after investing in Dogecoin, Bitcoin, and Ethereum during a bull market, their net worth has multiplied several times. The key is that they happened to cash out at a high point. Then, when the price dropped to $15,000, they came back to buy in again, picking up all the chips they sold before. Now they have become 'big shots' in our circle. However, these two types of people are only a tiny minority in the crypto space; most people are either losing their hard-earned money or making a little to get by. Including you and me. Actually, becoming one of the 10% who make money is very easy; it’s just that the crypto space is a big dye vat with overly flashy colors and too many temptations. We are blinded, combined with human greed, it’s very normal for us to lose money in the crypto space. However, in this bear market, the crypto space has been thoroughly vilified by critics. Whether newcomers continue to invest in the crypto space or just observe, everyone needs to make their own judgment, rather than following the crowd. Keep it up, crypto people. Welcome to follow our public account: 'Thirteen Degrees Below Zero', to traverse through bull and bear markets together and see through the red dust of the crypto world.
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Concise.
The ratio of profit-makers to losers in the crypto space is about 1:9. In the last bull market, some big shots made over a hundred million with FIL assets but refused to listen during the bear market, betting everything on FIL at the bottom, ultimately losing everything and going into debt by millions, becoming unreachable after borrowing money; there are also underdogs who cashed out at high points with Dogecoin and Bitcoin, and quietly acted after multiplying their wealth.
Both types of people are in the minority; most either lose their hard-earned money or make a little. In fact, becoming part of the 10% who make money is not difficult; it’s just that there are too many temptations in the crypto space, combined with human greed, leading to losses becoming the norm.
During the bear market, the crypto space has faced significant criticism, and newcomers need to make their own judgments and not just follow the crowd.
Why do many people still not accept virtual currencies?
Completed thought.
The fact that many people do not accept virtual currencies is essentially due to multiple contradictions between their inherent characteristics, external environments, and public perceptions, which can be elaborated on through the following core reasons:
1. High risk and uncertainty far exceed the public's tolerance.
The price of virtual currencies is highly volatile (a daily fluctuation of over 20% is common) and lacks backing from physical assets, with value entirely dependent on market speculation. For example, Bitcoin once surpassed $60,000 in 2021, fell to $15,000 in 2022, and then rebounded to $40,000 in 2023. Such 'roller coaster' fluctuations deter most risk-averse individuals.
More critically, over 90% of virtual currencies will eventually go to zero (like the once 'star cryptocurrencies' FIL, LUNA, etc., which have seen drops of 99%), making it difficult for ordinary people to distinguish the legitimacy of projects, easily turning them into 'chives'.
2. Ambiguous regulation and lack of legal status lead to a lack of safety nets.
Currently, most countries around the world have unclear regulatory attitudes towards virtual currencies: China has completely banned virtual currency trading and mining, the United States has defined some virtual currencies as 'commodities' and strengthened compliance reviews, while the European Union has restricted circulation through the (Crypto Asset Markets Regulatory Law).
This 'grey area' means that virtual currency transactions are not legally protected. Once scams, hacker attacks, or platform collapses (like the FTX bankruptcy) occur, users find it difficult to defend their rights; at the same time, its 'decentralized' nature makes it hard for governments to regulate money laundering and illegal fundraising, further eroding public trust.
3. High cognitive threshold and disconnection from daily life.
Virtual currencies rely on technologies such as blockchain and cryptographic algorithms, which present an inherent cognitive barrier to the average person — most people cannot understand concepts like 'decentralization', 'hash values', and 'private keys', making it even harder to assess their actual value.
Moreover, the application scenarios for virtual currencies remain limited to speculative trading, with almost no use in daily consumption (only a few merchants accept Bitcoin payments, and the process is complicated), offering no advantages compared to fiat currencies (like QR code payments and bank transfers), leading the public to feel that they are 'useless'.
4. Frequent negative news and a weak foundation of trust.
Virtual currencies have long been associated with 'pyramid schemes', 'fraud', and 'dark web transactions':
A large number of 'air coins' harvest chives through false advertising (such as fabricating 'blockchain innovation' stories and offering referral bonuses);
Frequent hacking attacks on exchanges (in 2022, over $3 billion in cryptocurrency was stolen worldwide);
Some platforms use leverage, contracts, and other tools to induce users to increase leverage, ultimately leading to liquidation and losses.
These negative events continuously reinforce the public's impression of virtual currencies as 'scams' and 'casinos', making acceptance naturally difficult.
5. The path dependency of the traditional financial system is difficult to break.
Fiat currencies are backed by national credit, supported by mature systems such as central bank regulation and bank settlement, and have long been integrated into people's daily essentials (salary payments, consumer payments, savings and investments, etc.). In contrast, virtual currencies, as 'unofficial currencies', cannot replace fiat currencies in fulfilling circulation functions, nor can they be incorporated into traditional investment frameworks like stocks and funds. For those accustomed to the existing financial system, accepting them means overturning a long-established view of money and transaction habits, which is extremely difficult.
In summary, the characteristics of virtual currencies such as 'high risk', 'low utility', 'lack of regulation', and 'difficulty in understanding' fundamentally conflict with the public's financial demands for 'safety', 'stability', and 'controllability', which is the core reason for their difficulty in gaining widespread acceptance.