Anarchy and free markets in action

Despite many attempts to clamp down on the crypto space, there is still quite a gap left for cryptocurrencies and individuals to act without the control of regulators. Anonymous coins coupled with coin mixing sites and decentralised exchanges allow for individuals to do as they please. The Silk Road was the first evolution of this, and it provided one of the first real-world use cases for Bitcoin. Anarchy and free markets are epitomised through cryptocurrencies.

It isn’t just episodes like the Silk Road that highlight the chaos within the industry. The market is filled with a variety of coins, each trying to do something useful (or so they claim). There are generally two different levels to these cryptocurrencies: the scams that know they are scams and the honest scammers that do not even realise they are scams themselves.

The market has treated such coins kindly, with many worth millions of dollars in market cap. There are many that are worth mere cents – compared to Bitcoin which is still floating above $3,000 – but market cap-wise they are still extremely valuable.

This is a prime example of a free market in action but with a touch of manipulation added as the cherry on top. Libertarians may appreciate such a market, although many Bitcoin maximalists who subscribe to libertarianism hate practically every coin listed. This is an example of the self-policing that is required within cryptocurrencies. Without the antagonism thrown towards such rubbish, the situation could be much worse. This self-policing isn’t working fully though, as new people continue to be suckered into coins they believe are revolutionary when in fact they are carbon copies of failed projects throughout the years.

Sadly, the confusing aspect of this space for newcomers means that hype and marketing allows for trash to pump and appear like they are valuable projects. Newcomers can be brainwashed into thinking that merely having a high market cap somehow gives a project legitimacy. There is little wonder why many people not involved in cryptocurrencies still view the space as the immature and scammy entity that it behaves like.