Don't become a cynic; cryptocurrencies still deserve pragmatic optimism

The cryptocurrency industry is experiencing a rift in values. On one side are the cynics mocking after shattered ideals, and on the other are pragmatic optimists who still hold on. Recently, veteran industry practitioner Ken Chan published an article titled “I Wasted 8 Years of My Life in Cryptocurrency,” reigniting this debate. Nic Carter, co-founder of Castle Island Ventures, responded with a thought-provoking piece: instead of falling into cynicism and denial, it’s better to choose optimism based on realistic possibilities.

This is not just a matter of personal values, but a fundamental question about how we understand the essence of cryptocurrency and how we view the inevitable bubbles and speculation that accompany innovation.

From Idealism to Disappointment: Why So Many Fall into Cynicism

Ken Chan’s “rage quit” is not an isolated case. Over the past decade, we have seen too many similar declarations. Early Bitcoin developer Mike Hearn also famously announced his departure, claiming Bitcoin had failed — it was supposed to become a decentralized currency but had become a centralized system controlled by a few.

The commonality among these exiters is that they all experienced a psychological collapse from idealism to cynicism.

Ken Chan’s points are indeed painfully true. He notes that the crypto industry claims to reshape the financial system but has actually evolved into the largest, 24/7 speculative casino in history. Venture capitalists have burned billions of dollars supporting countless Layer 1 blockchains that no one needs, with perpetual contracts, spot DEXs, prediction markets, meme coin platforms flooding the space, attracting countless retail investors to gamble. It all looks like a casino that refuses to admit it’s a casino.

On the surface, the cynics’ logic seems airtight: since cryptocurrencies have become tools for speculation, supporting them is helping others gamble, which is far from the original intention. So, it’s better to deny and leave.

But this line of thinking ignores a core fact: speculation, frenzy, and plunder are not signs of cryptocurrency’s failure but are the costs that all major technological revolutions inevitably bear.

What Can Cryptocurrency Actually Do? Five Perspectives to Break Through Cynicism

To escape the dead end of cynicism, we must first recognize what goals cryptocurrencies can realistically support. Nic Carter outlined five possibilities, each with its own unique value:

First, restoring a sound digital currency system. This has been the dream of early Bitcoin supporters — to make Bitcoin an alternative to sovereign currencies, even achieving some form of “digital gold standard” in certain countries. Although this goal is far from realized, Bitcoin has become an important store of value within just 15 years, which is remarkable in itself. Those holding this view often swing between hope and disappointment, but their persistence fuels ongoing technological development.

Second, embedding business logic into smart contracts. This is the philosophy most championed by Ethereum and Vitalik Buterin — if money can be digitized, why not encode contracts and transaction logic into code? In some narrow but important areas, such as derivatives trading, this idea has indeed succeeded.

Third, granting digital assets the same status as physical assets. This is at the core of Web3 or “Read Write Own” concepts — users should truly own their digital assets and online spaces. Although early practices like NFTs and Web3 social media mostly failed, the idea itself remains worth pondering. Many issues on the internet stem from users not truly owning or controlling their information, and blockchain could be the key to solving this in the future.

Fourth, making capital market infrastructure more efficient. This might be the least ideological — upgrading outdated securities settlement and bank wire systems with new decentralized architectures. It may not bring revolutionary change but can deliver tangible efficiency improvements.

Fifth, expanding financial accessibility globally. This is perhaps the most humanitarian goal — enabling people in underdeveloped countries to self-custody assets at low cost, use financial tools, and obtain equal access to a financial internet. This is already happening in reality.

These five goals are not mutually exclusive; each has its own rationality. The key is: don’t expect cryptocurrencies to solve all problems at once, and don’t dismiss the entire industry just because one goal fails.

Overcoming Cynicism: Three Reasons for Pragmatic Optimism

Cynicism is tempting because it offers a cheap sense of wisdom — I see through everything, so I can look down on it all. But this attitude is precisely the most irrational.

First reason: Acknowledge that speculation exists but choose not to participate. Yes, cryptocurrencies attract many gamblers. But that’s not the whole story, nor should it be a reason to deny the industry. You can believe in the value of blockchain technology while refusing to partake in meme coin gambling. Speculation does cause harm, but it’s an unavoidable cost of building permissionless capital markets, just like in any other market.

Second reason: Face reality but keep reasonable expectations. Cryptocurrencies will not realize a Randian libertarian utopia, nor will NFTs completely revolutionize digital ownership. Currently, only Bitcoin, stablecoins, DEXs, and prediction markets have genuine market fit. But what does this tell us? It shows these applications are real and valuable. Not overestimating expectations helps us see genuine progress more clearly.

Third reason: Industry flaws are inherent imperfections, not fatal defects. The rampant speculation, unchecked token issuance, and financial nihilism are real problems. But if you believe these costs outweigh the benefits brought by blockchain technology, then giving up is reasonable. But if you think the benefits outweigh the costs — even in certain applications — then sticking to it makes sense.

Pragmatic Optimism Is Not Blind Optimism

Finally, it’s important to clarify: pragmatic optimism does not mean blind optimism.

Cynics are wrong because they use the fact of “speculation” to completely dismiss the value of cryptocurrencies. Conversely, blind optimists ignore the real harm caused by speculation.

The right attitude is to see clearly what cryptocurrencies can and cannot do, acknowledge existing problems, but also recognize their value. Speculation has indeed hurt many people, and this cannot be downplayed. But without the capital inflows driven by speculation, many foundational infrastructures (Bitcoin, Ethereum, stablecoins) would not have been created.

The goals of cryptocurrencies may not be as radical as initially imagined, but they are still real. Millions of developers are involved not to make quick money but because they believe this technology can truly change something. The key is to stay optimistic based on realistic possibilities, not indulge in utopian dreams.

If you fall into cynicism, it’s not a problem with cryptocurrencies but a gap between your expectations and reality. Adjust your expectations, uphold values, and that’s the only way out of the cynicism trap.