The Alpha and the Omega in the crypto space
Group-dynamic processes as an explanatory approach
Why is the FUD (Fear Uncertainty Doubt) against IOTA so big? Is it at all, or is the FUD against IOTA overrated by the IOTA supporters? Which psychological processes can be used as explanatory approaches to understand FUD in crypto space in general and against IOTA in particular?
I try to find some answers to these questions here. But before I can do that, I have to go back and explain something fundamental about human thinking.
Thinking in categories
The complexity of our environment is too high for us to deal with or talk to each other without a simplified mental image of it. That’s why people think in categories. Everything we know and talk about is divided into categories. We look in our environment for features that we can use to subdivide objects of perception. This categorization helps us to perceive things and circumstances efficiently and simply. The formation of categories is therefore essential for our daily interaction.
Fig. 1: When we are overwhelmed with categories (source)Categorization of the crypto space
Many taxonomies have already been proposed to separate the crypto currencies from each other.
For example, the benefit can be used. What is a crypto currency good for?
Be a means of payment (actual currency)Use for services in a specific network (network token)As a unit certificate (investment or asset token)
Crypto currencies can also be divided into such
which allow access to a servicewhich allow you to actively participate in a networkwhich share the success of an idea (comparable to a dividend)
Of course, crypto currencies can also be distinguished in technical aspects. For example, how is the consensus algorithm defined?
Proof of Work PoWProof of Stake PoSA combination of both…
Or the type of supply:
Limited mineable currencyUnlimited mineable currencyPre-mined limited currencyNon-mineable limited currency
But the easiest difference is:
Currency is based on the blockchainCurrency is based on a directed acyclic graph (DAG)
Below you find two classification schemes for cryptocurrencies:
Token classification tableA multidimensional token classification frameworkEmergence of prejudices
Despite all the advantages: By creating categories,
