Bitcoin Giant Grayscale Caught Spreading Rumors about Fiat

Cryptocurrency asset manager Grayscale Investments removed a piece of false information from its official website after the intervention of an economist.

The New York firm had wrongfully maligned fiat currencies, writing that their average lifespan is 27 years. The statement attracted criticism from John Paul Koning, a Canada-based financial researcher, who claimed Grayscale merely misrepresented a long-running internet meme as fact.

Koning stated that he was long investigating the origin of the average-life-of-fiat claim, which led him to an article published in 2011 on Washington’s Blog, a platform for a group of anonymous financial writers. There he found more backlinks, which sourced the said claim to another financial writer named Chris Mack. Nevertheless, both the articles could not justify why a fiat currency’s average life is 27 years.

“In a disclaimer, the author noted that “I don’t know Chris Mack,” and thus couldn’t vouch for the figures,” wrote Koning. “However, he/she went on to say [that] the general concept is correct.”

Bitcoin Bugs

The revelations came as cryptocurrency enthusiasts have used fiat money as a prop to boost bitcoin adoption. The comparison is plain: the government can print fiat money endlessly, which makes it inflationary. On the other hand, bitcoin’s supply is capped to 21 million, which makes it a scarcer, and a potentially deflationary asset. Evangelists typically use the fiat argument to showcase bitcoin in a good light.

The fiat currency meme, in a similar manner, spread like a fire across the internet and eventually made to the Grayscale’s sales pitch. The firm, which offers cryptocurrency investment products, unintentionally believed the rumor and served it to its potential customers as a reminder of why fiat is bad and bitcoin is good. Koning added that many cryptocurrency evangelists used the same 27-year-life rumor as a tool to support digital assets.

“A long list of cryptocurrency luminaries has…

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