Hoskinson made an exception to Klippsten by calling blockchain a “marketing scam”. Specifically, Klippsten claimed that the blockchain is “a slow and expensive database”, but its only use case of merit is “as part of the system designed for Bitcoin”.
After the Terra scandal and the consequent deleveraging at the sector level, the maxi bitcoins have become more explicit in condemning everything that is not Bitcoin. While some have labeled this mentality as “toxic”, On-Chain Analyst Jimmy Song he said the maxis “weren’t toxic enough,” resulting in the loss of billions in recent events.
The Bitcoin maximalists weren’t toxic enough. This is why people have lost billions on the Moon, Celsius, 3AC, and more.
– Jimmy Song (송재준) (@jimmysong) July 26, 2022
Klippsten breaks down the blockchain
During the interview, Klippsten debunked the narrative that blockchain technology is revolutionizing the internet to promote greater utility.
He dispelled the idea that blockchain is a cutting-edge technology, saying it dates back to the 1980s and is no faster or cheaper than competing technologies. However, the only exception to this, to the extent that it offers some value, is the blockchain system that underpins the Bitcoin network.
“The blockchain has existed for 40 years; any use case that people have tried to apply to it is just a slow and expensive database. “
In support of this view, the CEO of Swan Bitcoin provided several examples, including an account of Fidelity’s research on blockchain technology, which resulted in the abandonment of “50 proofs of concepts” for lack of usefulness.
Responding to Klippsten, Hoskinson countered that blockchain is “a recognized class of technology” with different real-world use cases, from voting to supply chain. He then launched a personal attack on Klippsten questioning his ability to understand the concept.
He’s an idiot. It is a recognized class of technology that solves real problems from voting to the supply chain. Just because it is unable to understand why reality no longer changes that not understanding radiation does not make it not exist
– Charles Hoskinson (@IOHK_Charles) July 26, 2022
Maximalism is not toxic maximalism
Recent events have been a wake-up call for the entire industry. Russell Starr, CEO of cryptocurrency firm Exchange Traded Products (ETP) Valor, wrote via email that a factor in the losses was lack of maturity and inadequate due diligence on the part of investors.
To this end, the bitcoin maxi argue that anything that is not BTC self-custodian is “degen finance” and should therefore be avoided for reasons of prudence. Ethereum co-founder Vitalik Buterin rationalized this point of view by saying that “a good dose of intolerance is in fact necessary” to counter “scamming cryptocurrencies”.
However, others say that the total discount of non-BTC protocols is a narrow approach. Speaking recently on the Unchained Podcast, Shapeshift CEO Erik Voorhees said he felt embarrassed by the toxic maximalism he encountered at his first conference, the Bitcoin 2021 conference.
In setting, Voorhees distinguished maximalism from toxic maximalism, saying the latter refers to people behaving like “* assholes. [to those] who don’t think like us about Bitcoin “.
During the conference, Voorhees said he witnessed numerous examples of behavior that do not represent the Bitcoin community he came from, which he characterized as openness, decentralization, innovation, compassion for the monetary economy, and a belief that BTC offers greater egalitarianism.
If anything, Voorhees stressed that toxic maximalists should recognize the banking system as an enemy and not other protocols on a general basis.
“If there is an enemy, it is central banks, banks and fiat currency. Not the Dogecoin community, not the Ethereum community “.
Have maxi bitcoins always been right?
Contacting Max Keizer for his comments, the host of the MAX & STACY REPORT podcast stated that “Bitcoin acts as a truth serum, “which implies that those who seek the truth only consider BTC.
He expanded on that the truth effect ultimately sheds light on those who do “wrong things”, giving Celsius CEO Alex Mashinsky as an example. It should be noted that Mashinsky is not under civil or criminal investigation for his role in the company that filed for bankruptcy under Chapter 11.
In any case, Keizer predicted a mass crackdown by the SEC on the basis that all altcoins are unregistered stocks. If this scenario occurs, the altcoin investment case would be severely hampered.
“As I have warned since the dawn of ICOs, these are stocks and the SEC will crack down on anything that isn’t Bitcoin.”