The Crypto Industry Iceberg: Do You Really Know the Truth?

This article takes you on a journey through the most captivating theories in the crypto world. Using the “iceberg model,” we reveal how the visible part is just the tip of a much larger, intricate system beneath the surface.

As you delve deeper into the iceberg, exploring theory after theory, you'll challenge and potentially reshape the “matrix” of your existing beliefs. With a transformed perspective, you might uncover insights that could spark significant changes in your understanding—and even in your real-world decisions—much like a modern-day Neo.

Fiat Currencies Have No Intrinsic Value  

The value of fiat (or fiduciary) money relies solely on public trust in the government’s ability to maintain economic stability. However, history reveals that such trust is not always justified. For example, in Zimbabwe, hyperinflation rendered the local dollar worthless, and in Venezuela, the bolívar experienced catastrophic devaluation. 

Fiat money is vulnerable to inflation, manipulation, and political instability. Unlike fiat currencies, which are not backed by tangible assets like gold or commodity reserves, many fundamental cryptocurrencies are designed with a fixed supply. This characteristic reduces the risk of inflation and positions cryptocurrencies, particularly Bitcoin, as viable alternatives to depreciating fiat currencies.

Bitcoin: Limited Supply Meets Boundless Demand  

The total number of Bitcoins in existence will never exceed 21 million. This predetermined cap makes Bitcoin an extraordinarily scarce asset. The 21-million limit is hardwired into the blockchain code, ensuring that its issuance will never surpass the boundaries set by its algorithm.

This characteristic distinguishes Bitcoin not only from fiat currencies but also from other cryptocurrencies, some of which have significantly larger—and in some cases, even infinite—supplies.

This isn’t just a theory to be taken on faith. A glance at the surge in institutional demand for Bitcoin in 2024 speaks volumes. 

It’s Not Prices Rising, It’s the Dollar Losing Value  

The increase in asset prices, such as real estate and stocks, is often linked to the inflation of the US dollar. The petrodollar system, which underpins the modern global economy, is losing value due to the relentless operation of the money printer. This drives investors to seek inflation-resistant alternatives.

This dynamic explains the significant rise in housing and stock prices in Western nations, with valuations often exceeding their underlying economic worth.

Such trends create a false sense of wealth among asset holders, masking the ongoing devaluation of the currency itself. As a result, more investors are turning to cryptocurrencies as a preferred hedge against inflation.

Smart Contracts: The Automated Economy That Eliminates Intermediaries  

Smart contracts on the Ethereum blockchain have revolutionized economic processes by removing the need for intermediaries. The concept involves replacing traditional financial roles—such as banks, notaries, and real estate agents—with self-executing agreements.

Smart contracts function as code that guarantees transparency and removes the necessity of relying on a third party. Since Ethereum's inception, these contracts have become the cornerstone of decentralized finance (DeFi), asset tokenization, and crypto payments, offering a cutting-edge alternative to outdated centralized systems.

Goodbye, intermediaries!   

Bitcoin: A Symbol of Protest Against TradFi  

In the very first block of the Bitcoin blockchain, personally created by Satoshi Nakamoto, a seemingly cryptic message was embedded: “Chancellor on brink of second bailout for banks.”

Few realize this was a quote from the British newspaper The Times, referencing the 2008 financial crisis when governments had to rescue major banks using taxpayers' money.  

This act became Satoshi's manifesto: a declaration to create a system independent of centralized institutions and state interventions. Bitcoin was envisioned as an alternative to traditional financial systems, where power and wealth are concentrated in the hands of a select few individuals and organizations.

Now you know why your banker might not be a fan of Bitcoin.

The headline from The Times, as referenced in the Genesis Block. Source: reddit.com

Altcoin Seasons: Why Old Indicators May Mislead You  

Since 2017, one of the most widely used strategies in the crypto market has been analyzing the ratio of altcoin market capitalization to Bitcoin (alt/BTC). Traders relied on this method to identify the right time to shift funds into alternative cryptocurrencies when Bitcoin's momentum began to wane. While profits eventually need to be locked in, the question for every serious investor remains: “What comes next?”

This approach worked well when the number of altcoins was relatively small. Today, however, with thousands of “empty” tokens being created daily, diluting the overall market capitalization, alternative metrics have become necessary.  

You might now encounter ratios like alt/SOL or SOL/ETH. Modern traders have adapted to track market trends, identify the preferences of the crypto mass market, and assess the popularity of specific blockchains.

As we approach the end of 2024, investors are required to conduct more granular and discretionary analyses of altcoin prospects compared to leading cryptocurrencies.

Silk Road Established BTC as the Currency for Illicit Transactions  

Silk Road was the first prominent online marketplace where Bitcoin (BTC) was used as the primary form of payment. Launched in 2011, Silk Road provided an anonymous platform for buying and selling illegal goods and services, such as drugs, weapons, and counterfeit documents. 

Bitcoin was chosen for its decentralized structure and pseudonymity, which made it ideal for facilitating confidential transactions. The platform played a crucial role in Bitcoin's early adoption before the cryptocurrency was recognized in traditional financial systems and started being used for legitimate transactions and investments.

Notably, Silk Road founder Ross Ulbricht is currently serving a life sentence. However, he may have an opportunity for clemency under Donald Trump.

Related: Ross Ulbricht: Drug Lord or the First Crypto Prisoner?

Arthur Hayes Saved the Market by Halting BitMEX  

Some cryptocurrency conspiracy theorists assert that Arthur Hayes, the charismatic co-founder of the BitMEX exchange, intentionally shut down his platform at the height of the death candle during the global economic collapse triggered by the COVID-19 pandemic.

According to these theories, the move aimed to prevent further Bitcoin and cryptocurrency crashes that could have resulted from mass liquidations. This narrative casts Hayes as an invisible savior of the market, stepping in during a period of panic to stabilize the cryptocurrency ecosystem and strategically secure its future.

In reality, BitMEX did experience technical issues that necessitated a temporary trading suspension for several hours. However, this was not a calculated attempt to save the market but rather a reactive measure to address operational challenges.

Cyberpunk Ethos: The Philosophy Behind Bitcoin and Ethereum  

Many crypto enthusiasts argue that the creation of Bitcoin (BTC) and Ethereum (ETH) stems from the cyberpunk ethos—a philosophy rooted in the principles of decentralized control, personal freedom, and opposition to centralized authority.

According to this view, Satoshi Nakamoto and other cypherpunks were inspired by cyberpunk ideals—a genre that often portrays technology as a tool for dismantling state structures and corporate dominance.

Bitcoin was likely conceived as a digital monetary revolution, designed to liberate individuals from the control of financial institutions and government regulators. Its decentralized architecture and finite supply have become enduring symbols of financial autonomy and resistance to traditional power structures.

Ethereum, on the other hand, expanded the scope of blockchain technology, offering smart contracts and decentralized applications (DApps). These innovations have unlocked new opportunities for autonomous systems and financial experimentation.

Meme Tokens: More Than Just Jokes! They're BTC 2.0  

What? Meme coins as BTC 2.0?! 

Hold your laughter for a moment. Meme tokens are transforming before our eyes into one of the most sophisticated mechanisms for building fiercely loyal holders and cult-like communities.  

These cryptocurrencies, often inspired by viral trends and humorous concepts, have demonstrated a surprising ability to create unique and highly active communities. These groups can drive significant and extraordinary price movements—echoing the dynamics of Bitcoin's early years. 

In this framework, meme coins aren’t merely jokes or passing trends; they’re catalysts for a new era of financial enthusiasm.

Was Ethereum Created to Steal BTC?  

The hypothesis that Ethereum was designed to divert Bitcoin stems from the project’s early days. During its 2014 ICO, some argued that Ethereum wasn’t just conducting a token sale but attempting to redirect Bitcoin capital into ETH deliberately.

The ICO required participants to purchase ETH using Bitcoin, which was significantly undervalued at the time. Around that period, narratives began to circulate suggesting that Bitcoin was becoming outdated and sluggish, like a dinosaur.

While many individuals from that era can recount their perspectives on the events, the full truth behind this theory regarding Ethereum’s origins may never be conclusively revealed.  

Who Profited from the Fake News About Vitalik Buterin's Death?  

In 2017, the market was rocked by a false report claiming the death of Ethereum founder Vitalik Buterin, triggering a wave of panic and a sharp drop in ETH’s price. The news was quickly revealed to be a hoax, but questions linger: was this misinformation part of a coordinated effort, or just sensationalist media gone awry?

Many investors, fearing the worst, rushed to sell their ETH holdings. However, the presence of preemptively opened short positions by certain individuals raises suspicions. It suggests that some may have been aware of the impending fake news release and strategically used it to profit from ETH’s rapid decline.

Was DeFi 2.0 Created by the Italian Mafia?  

One theory suggests that tokens like TIME, SPELL, and ICE may have been used by the Italian mafia for money laundering. According to this hypothesis, Cosa Nostra utilized cryptocurrency tokens to conduct illicit operations, launder funds, and finance criminal activities.

However, no solid evidence has been found linking these specific projects to criminal organizations. These tokens belong to legitimate DeFi initiatives such as Wonderland (TIME), Abracadabra (SPELL), and Popsicle Finance (ICE). 

While the DeFi sector as a whole is vulnerable to misuse for money laundering, no direct ties between these tokens and organized crime have been identified.

Related: AML: Stopping Money Laundering in Its Tracks

Is Popular Crypto Blogger BitBoy Using Cocaine?  

Rumors about the cocaine-fueled invincibility of crypto blogger BitBoy (Ben Armstrong) speculate that his boundless energy and non-stop activity could be linked to alleged cocaine use. Supporters of this theory suggest that his ability to maintain a high-energy presence and make bold, headline-grabbing claims in the crypto world might be fueled by stimulants.

This theory also attempts to explain his tendency for eccentric and sometimes contradictory behavior in the public eye.

However, there is no evidence to support the claim that BitBoy has ever used or abused cocaine or any other substances. 

Is Satoshi Nakamoto a CIA Agent?  

Speculation that Bitcoin’s enigmatic creator, Satoshi Nakamoto, might have ties to the CIA stems from a variety of theories. Advocates of this idea suggest that the development of Bitcoin and blockchain may have been part of a broader U.S. government strategy to create a decentralized currency capable of circumventing international sanctions and supporting intelligence operations.

Despite these claims, there is no solid evidence connecting Satoshi Nakamoto to the CIA. Most experts believe Bitcoin was conceived as a response to financial crises and the desire for a digital currency free from government control.

Satoshi Nakamoto’s identity remains a mystery, and any alleged connection to government agencies is purely speculative.

Related: Satoshi Nakamoto: A Hidden Seller Since 2019?

Is Murad the Man Behind Baproll?  

A theory circulating in the crypto community suggests that Murad and Baproll—the prominent bullish advocate for the SPX6900 memecoin—might actually be the same person. Supporters of this idea point to striking similarities in their communication styles, analytical approaches, and market predictions, as well as a noticeable overlap in their market influence and discussion topics.

The speculation posits that Murad, known for his assertive crypto forecasts, could be using the alias Baproll to extend his reach and sway within the market.

Despite these claims, Murad and Baproll remain distinct figures in the crypto space, with no concrete evidence linking their identities. For now, the connection between them remains a topic of unconfirmed speculation.

Related: Who Is Murad: A Hype Guy or a Legendary Trader?