My counter-arguments to a popular Medium article.
Last month, an article titled “17 Years After Their Invention, Cryptocurrencies Have No Use Case” popped up on my feed.
Strictly speaking, the author, Aure’s Notes, did acknowledge the “one and only use case”, the favourite argument of many crypto detractors:
“Crypto has still no use cases, besides speculative investment, tax evasion, and scams.”
OK, here we go again.
It’s an outdated half-truth at best, but it’s laughable to paint every crypto asset with the same brush.
I was tempted to leave counterarguments, but I knew this would be futile.
Instead, I’ve chosen to call out this nonsense and write an entire article covering indisputable points about the genuine utility of cryptocurrencies and blockchain technology.
It is not what could be, but it is currently being done, albeit in its early stages.
It’s as nonsensical as those who dismissed Amazon, which launched during the dot-com bubble (1997-2003), because it was associated with many bogus projects during that era.
Yes, scams exist in crypto, just like everywhere else. At least 99% of coins and tokens are scams and overhyped garbage with no utility.
Aure’s Notes alluded to the 25,000 reported cryptocurrencies created since 2008, (almost) all are useless. I’ll give credit where it’s due.
But up to 1% of these (more like 0.1%) will be life-changing and forever silence its loudest critics.
Today, we’ll debunk some myths still perpetuated in this space, to the detriment of those behind legitimate projects looking to solve problems.
We’ll also examine some of crypto’s biggest use cases, which will disrupt many sectors.
I’ll start with the most glaring example:
1) Ultra-fast and cheap international payments
Crypto haters couldn’t be bothered to spend 3-5 minutes learning the basics of XRP, an efficient payment method for remittances and Ripple’s growing list of bank partnerships.
This is all useless because, you know, sending money through banks and money transfer services (with all the intermediaries taking their cut) works really well for both the sender and receiver.
What infrastructure does PayPal use to process transactions for its stablecoin, PayPal USD (PYUSD)?
Answer:
“PYUSD is initially built on Ethereum and Solana blockchains, built for programmability, and compatible with the most widely used exchanges, wallets, and dApps.”
Even if you disregard Solana (SOL)—the project many crypto holders love to hate—denying Ethereum’s (ETH) important role in running dApps makes no sense.
And what are ETH and SOL? Cryptocurrencies. These are needed to process transactions on their respective networks, so they’re far from useless.
Thinking of BTC, even though Bitcoin’s network is slow and transactions are not cheap enough (yet) to justify micro payments, it’s still much faster, more affordable and easier to transfer value in BTC than fiat currencies, which rely on centralised intermediaries to approve.
Seeking an alternative to conventional remittance services was one of the major catalysts for my foray into crypto.
When I saw dozens of dollars being charged to send about $150-200 worth of value (and had to wait up to 24 hours), I thought, “There’s gotta be a better way.”
Yes, we have more efficient alternatives such as Wise, OFX, and other companies that have provided alternatives to Western Union and banks. Still, we need automated systems that can settle in seconds and cost pennies.
2) Institutional investors are obsessed with a “scam”
Multinational asset-fund managers and other corporations are so delusional that they’re willing to risk their reputation (one that has taken decades to build) to pour money into “scam assets.”
Sure.
Oh, but they’re getting involved because “they know there’s money to be made in the short term and they know enough fools will buy into this.”
BlackRock, Fidelity and other multi-trillion-dollar asset managers must be delusional to offer spot Bitcoin and Ethereum ETFs to the masses.
Let’s see how this all pans out.
3) Dignity for the unbanked
Some of crypto’s loudest critics are those who don’t understand its benefits, specifically Bitcoin.
While most of the world has had access to conventional banking systems for decades, over a billion people remain excluded.
“Lack of money, distance to the nearest financial institution, and insufficient documentation were consistently cited by the 1.4 billion unbanked adults as some of the primary reasons they did not have an account.”
2022 International Bank for Reconstruction and Development, The Global Findex Database 2021
Even in the USA, some of its permanent residents remain unbanked.
If the world’s richest country still has this problem, imagine what it’s like for many others worldwide.
Anyone with access to a basic smartphone and a decent wireless internet connection can send and receive BTC via non-custodial wallets without relying on a financial institution or needing to satisfy KYC requirements.
Ethereum (ETH) and XRP are other viable choices, albeit less decentralised than Bitcoin.
But for some high-browed people who assume there’s nothing wrong with our current system, crypto (including BTC) is all a scam.
Let’s not forget about countries such as Argentina, Zimbabwe, Türkiye, Venezuela, etc., which are significantly affected by inflation well above 50%, sometimes 100% yearly.
Crypto doesn’t seem so ridiculous, but its haters won’t budge.
4) Cash and other assets are still king for criminals, not crypto
Cash, real estate, precious metals, and diamonds remain popular for money laundering and other illicit activity, not crypto.
Contrary to popular belief, the vast majority of cryptocurrency transactions, by volume, are legitimate.
In 2024, only 0.14% of the total on-chain transaction volume (up to $51 billion) was received by illegal addresses known to authorities.
These are statistics from Chainalysis, one of the most reputable blockchain data platforms, specialising in on-chain tracking in over 70 countries.
$51 billion is still a large number and needs to be properly addressed, but perspective is important here.
“The estimated amount of money laundered globally in one year is 2 – 5% of global GDP, or $800 billion – $2 trillion in current US dollars. Due to the clandestine nature of money-laundering, it is however difficult to estimate the total amount of money that goes through the laundering cycle.”
United Nations Office on Drugs and Crime > Money laundering
$51 billion of, let’s pick the lower estimate of $800 billion, is still less than 7%…
While Bitcoin was more popular for illicit activity, stablecoins now comprise the lion’s share.
According to the above-mentioned Chainalysis report, stablecoins represented roughly 63% of all illegal digital-asset transactions in 2024.
It’s ironic because the two most popular ones, USDT and USDC, are issued and managed by centralised entities, Tether and Circle, unlike a truly decentralised and permissionless (public) network like Bitcoin.
Before making assumptions, remember that stablecoins also experienced a 77% growth in lawful usage.
Don’t pretend that traditional finance hasn’t enabled money laundering due to insufficient checks and balances.
People who live in glass houses shouldn’t throw stones.
To address this problem, stablecoin issuers, regulated exchanges and other relevant parties should comply with Know Your Customer (KYC) procedures and Anti-Money Laundering (AML) regulations.
No system will be foolproof, and more needs to be done to identify and block these illegal transactions as quickly as possible (or, at the very least, trace them).
Such measures are a step in the right direction, but I recognise that they have implications for law-abiding citizens seeking a privacy-focused digital alternative to cash.
5) Tokenisation
With the rise of smart contracts and advancements in AI, tokenisation (a.k.a., fractionalisation) will allow physical assets to be easily divided into hundreds or even thousands of portions on a blockchain.
This will be significant for transforming direct ownership for portions of high-end investments, such as real estate, artwork, and, to a lesser extent, digital collectibles such as “prestigious” NFTs.
With the global property market valued at around $654 trillion (including residential and commercial real estate), the idea of RWA fractionalisation, even for just 1-2% of this figure, has enormous potential.
This concept is appealing because it’s highly relevant to everyone, particularly retail investors. No more worrying about being excluded from partial ownership of tangible goods exclusively available to high-net-worth investors, aristocrats, and companies.
Yes, I know people can do this through REITs, real-estate-focused mutual funds and ETFs, crowdfunding, and other means.
Having this ownership data verified using blockchain technology (in addition to automated systems) means less reliance on intermediaries, using a system that will eventually work 24/7 rather than being limited to business hours in certain time zones.
Companies such as Propine, RealT, Propy, RedSwan and BlackRock (via its tokenised fund, BUIDL) are some firms that offer tokenised assets of their clients.
Most of these use Ethereum (therefore, involve ETH) to operate. Institutions also use other L1s, such as Solana, BNB Chain, Polygon, and Avalanche.
6) Another fallacy: “The blockchain” will be compromised
“In the long term though, it’s likely that the blockchain will be made redundant by a superior technology that will be able to break it.”
Aure’s Notes
Two flaws with this comment:
1) Blockchains (at least some) will incorporate quantum-resistant (QR) technology or migrate to a similar chain before their networks are hacked. Some won’t be able to withstand quantum computing, whereas others will.
Vitalik Buterin (Ethereum), Charles Hoskinson (Cardano), and other co-founders of popular blockchains have acknowledged the importance of QR blockchains.
The U.S. National Institute of Standards and Technology (NIST) is actively selecting new cryptographic standards through its Post-Quantum Cryptography (PQC) initiative to prepare for quantum computers.
2) When the cryptography used in digital assets – notably ECDSA and SHA-256 for Bitcoin – is compromised, many other uses of this algorithm, particularly website security certificates, smart cards, password hashing, digital signatures, will also be screwed, unless these migrate to a quantum-resistant alternative before quantum computing booms.
Everything that isn’t QR will be at risk, not just blockchain technology.
Also, there is no single blockchain. Despite falling under the umbrella term of blockchain technology, these networks take on various forms with different consensus algorithms and degrees of decentralisation.
7) Traceability
VeChain (VET) and OriginTrail (TRAC) are established projects using blockchain technology to improve traceability across supply chains.
This longstanding layer-1 project, which runs on the VeChainThor blockchain, has forged partnerships with Walmart China to help it improve transparency for food products and boost food safety standards. It uses blockchain data to verify this information.
Beyond supply chains, the UFC started teaming up with VeChain in 2022. The blockchain project is being integrated into various UFC events and assets: live events, in-arena promotions, and involvement through digital and social channels.
Earlier this week, UFC President Dana White confirmed that he will join the VeChain advisory board.
Dr. Andre Luckow, Head of Distributed Ledger and Emerging Technologies at the BMW Group, has spoken about the trial of a project called VerifyCar, allowing its client to use verified data on a blockchain to track and confirm vehicle history – repairs, mileage, cases of accidents, if applicable, etc.
Until recently, I would have featured Dimitra on this list, a protocol that offers products to help smallholder farmers harness the benefits of blockchain tech for improved yields, better mapping, and less wastage, i.e., run-off of excess fertiliser, pesticides, and herbicides.
After one of its wallets was hacked in January, I am less enthusiastic about it than I once was.
Doubters will laugh at this and say that this demonstrates crypto is useless and unreliable.
Again, the failure of various crypto projects does not invalidate their use cases or make cryptocurrencies bogus.
Just because we don’t have the best technologies now, it doesn’t mean crypto is a failure.
Good things take time, especially when trillions of dollars are at stake.
Additional thoughts
I could have featured other use cases of blockchain technology and cryptocurrencies here, but I chose not to for brevity.
I understand people’s reluctance to support this until a few years ago, when we still had insufficient regulations and far less adoption.
However, the persistent bias against this asset class in 2025 is extremely disappointing.
Due to fraudulent activity across this sector, legitimate projects with genuine applications are put into disrepute.
The various scandals, hacks, and collapses over the years—Mt Gox, Terra Luna, FTX, 4AC, numerous pump-and-dump schemes, and the recent Bybit exploit—have emboldened people to disparage the entire industry and asset class.
As always, many wait to distinguish the gross negligence of these centralised entities from the performance and security of the decentralised* cryptocurrencies themselves, BTC, ETH, XRP, SOL, ADA, etc.
* With varying degrees of decentralisation.
What’s more embarrassing is the lack of critical analysis, even with tools such as ChatGPT at one’s disposal – not infallible, I know. Still, it’s far better than no research or disinformation. People take arguments against crypto at face value.
I have little respect for people who can’t be bothered doing some research before rubbishing this industry.
Moreover, they see an established writer express their thoughts and interpret them as mostly true.
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Even economics experts and famous investors get things wrong about crypto.
In February, I analysed misleading arguments by Eugene Fama, a 2013 Nobel laureate and co-creator of the Fama–French three-factor model, who is almost certain that Bitcoin is going to zero within a decade.
I have also pointed out the atrocious Bitcoin/crypto advice of Warren Buffett, the late Charlie Munger, and Dave Ramsey.
Back to Aure’s Notes, I won’t take it lying down when someone dedicates an article to tarnish crypto’s reputation – one I regard as a fluff piece dotted with half-truths.
Some will say, who cares what he thinks?
I agree, but these comments still influence the uninitiated.
As he has amassed a large following (>10,000) on Medium, with, I imagine, over a million views to date, he’s far from a Joe Schmoe, so many will think he’s in the know about cryptocurrencies, even though I strongly beg to differ.
Just because these individuals have been (highly) successful in their craft, it doesn’t mean they’re qualified to give sound advice about cryptocurrencies, blockchain (and other forms of distributed ledger) technology, and the potential disruption they can cause to different sectors.
It bothers me when retail investors are continuously put off investing in this asset class and sector, which is far from reaching its full potential but is making progress nonetheless.
Ultimately, everyone is responsible for their actions, so I won’t solely blame an author for their poor decisions.
It’s not like he’s the only one to rubbish this asset class; we’ve had no shortage of this over the years.
Many forms of technology were ridiculed in their early days: cars, planes, the Internet, (smart)phones, video streaming services, email, etc.
I see Bitcoin, altcoins and distributed ledger technology experiencing the same phenomenon.
We will eventually see who was right: Bitcoin/crypto’s staunchest critics or its most devout believers.
𝐆𝐫𝐚𝐩𝐡 𝐨𝐟 𝐁𝐢𝐭𝐜𝐨𝐢𝐧 𝐀𝐝𝐨𝐩𝐭𝐢𝐨𝐧 𝐑𝐚𝐭𝐞 𝐂𝐨𝐦𝐩𝐚𝐫𝐞𝐝 𝐭𝐨 𝐈𝐧𝐭𝐞𝐫𝐧𝐞𝐭 𝐀𝐝𝐨𝐩𝐭𝐢𝐨𝐧
The adoption and spread of #BTC are growing along a similar trajectory to that of the Internet and have already reached 4.7% of the global population—the same user… pic.twitter.com/8qQxMMAWuO
— 𝐒𝐦𝐚𝐫𝐭 𝐋𝐢𝐪𝐮𝐢𝐝𝐢𝐭𝐲 (@_SmartLiquidity) May 25, 2024
Disclaimers
• N.B. None of this is financial advice; I am not a financial advisor. This information is for educational purposes only. You are ultimately responsible for your investments.
- My opinions in this piece might not reflect those behind any news outlet, person, organisation, or otherwise listed here.
- Please do your own research before investing in any crypto assets, staking, NFTs or other products affiliated with this space.• BTC and ETH account for approximately 55% of my crypto portfolio. XRP and Cardano (ADA) make up another 20%, followed by other altcoins.
Featued image by Audio und werbung at Shutterstock.