Cryptocurrencies and Society: The Illusion of Prosperity and Manipulation

Over the past decade, cryptocurrencies have transitioned from niche technological experiments to a global phenomenon commanding headlines, investment portfolios, and public imagination. While their technical innovations—particularly blockchain technology—promise transformative shifts in finance and transaction security, the social and psychological dynamics propelling their popularity reveal a far more complex picture. Behind the veneer of decentralisation and financial freedom lies a landscape dominated by manipulation, illusion, and a collective fascination that echoes religious fervour and sectarian devotion.

The Psychological Roots of Cryptocurrency Enthusiasm

The surge in interest around cryptocurrencies can largely be attributed to primal psychological mechanisms. Humans are inherently attracted to quick gains, risk-taking, and stories promising rapid wealth—traits shared with gambling, speculative markets, and charismatic religious movements. The allure of “getting rich quick” taps into cognitive biases such as the herd mentality and confirmation bias. These biases are exploited by promoters who frame cryptocurrencies as a path to liberation from traditional financial systems, resonating with the desire for empowerment and autonomy.

Similar to religious denominations and sects, the narrative surrounding cryptocurrencies often involves shared beliefs—faith in a new, “better” financial order—despite the lack of concrete evidence or understanding about its real technical capabilities. Followers find in these stories a sense of belonging, purpose, and hope for a future where they are no longer passive consumers of an opaque monetary system, but active participants wielding revolutionary power. This collective identity fosters devotion akin to religious zeal, where skepticism is replaced by unwavering trust placed in charismatic figures and online communities.

Manipulation Techniques: Beyond the Technical Talk

The technical complexity of blockchain and cryptography often deflects critical scrutiny, allowing manipulators to hide their true intentions behind jargon and pseudoscience. The narrative of decentralisation and technological progress serves as a smokescreen that distracts from the core issue: that much of the cryptocurrency market is driven by a small group of insiders, scammers, and opportunists who manipulate prices and spread false promises.

Promoters frequently employ classic techniques of psychological manipulation—FOMO (fear of missing out), social proof, and exaggerated claims of guaranteed returns. These tactics resemble those used in religious sects to attract new converts or in high-pressure sales. The promised “financial freedom” often turns out to be a mirage, with most participants experiencing losses rather than gains. Meanwhile, the media amplifies stories of overnight millionaires, further perpetuating the illusion that anyone can rapidly become wealthy through crypto investments.

The Illusion of Cryptocurrency as Money

Despite the technical advancements underlying cryptocurrencies, the vast majority of users view them not as a new form of money or medium of exchange but merely as speculative tools. Few understand or even care about their potential as decentralised currencies that could revolutionise global payments and reduce reliance on intermediaries. Instead, they see crypto primarily as an asset class—akin to gold or stocks—subject to volatility and emotional trading.

This shift from utilitarian monetary use to speculative investment has transformed cryptocurrencies into instruments of speculation, driven more by individual greed than technological necessity. Advanced blockchain technology, which could underpin efficient, transparent, and censorship-resistant financial systems, now often serves as a façade for ponzi schemes, pump-and-dump schemes, and frauds orchestrated by those seeking quick profit at the expense of unwitting investors.

The Tech Behind the Illusion: A Distraction and a Trap

The marvels of blockchain and cryptography have the potential to revolutionise finance—if used ethically and responsibly. However, their complex and opaque nature makes them ideal tools for manipulation. Driven by profit motives, many operators intentionally obfuscate the true risks and technical limitations, framing cryptocurrencies as easy money rather than complex financial instruments demanding careful analysis and understanding.

By diverting attention from their utility as currencies or payment systems, manipulators turn advanced technology into a Trojan horse—camouflaging scams as revolutionary breakthroughs and luring naïve investors into speculative traps. In effect, the sophistication of the tech becomes an entry point for deception rather than a catalyst for societal progress.

The Reality Check and Looking Forward

While cryptocurrencies hold the promise of decentralised, global financial systems capable of challenging traditional banking structures, the current landscape is largely dominated by unregulated markets filled with fraudsters, gamblers, and opportunists. For blockchain technology to fulfil its transformative potential, it must be disentangled from these manipulative and exploitative practices.

Educational efforts are vital for cultivating rational understanding of cryptocurrencies, emphasising their role as means of payment and store of value rather than get-rich-quick schemes. Policymakers, technologists, and investors should focus on transparency, accountability, and real-world applications rather than chasing the hype. Only then can the technology be harnessed for social good rather than become a tool of deception and greed.

Conclusion

Cryptocurrencies, in their essence, are neither inherently good nor evil. Their social impact depends critically on human psychology, context, and intent. Currently, their popularity is fuelled more by psychological manipulation, religious-like fervour, and speculative mania than by clear evidence of utility. Recognising these patterns is the first step towards separating technological potential from market illusion, ensuring that blockchain and cryptocurrencies evolve into tools serving society, not just a playground for the manipulative and the greedy.

Sources:

• David Yermack, “Is Bitcoin a Real Currency? An Economic Appraisal,” Economics Letters, 2015.
• Don Tapscott, Alex Tapscott, “Blockchain Revolution,” Portfolio Penguin, 2016.
• Jameson L. Wetmore, “Psychological Manipulation in Markets and Cults,” Journal of Social Psychology, 2018.