At I Am Humans, we are not entirely opposed to leveraging blockchain technology. However, we are not maximalists either. Instead, we take a conservative approach to determining when this technology is appropriate and when it is not.
Blockchain enthusiasts often proclaim that digital assets are the next best thing since sliced bread. Yet history reminds us that speculation without grounding can be dangerous. The Panic of 1837 serves as a cautionary tale, undermining the optimism of blockchain enthusiasts who believe digital assets alone can transform the economy.
As President Andrew Jackson once warned of banking privilege:
“What aristocratic privilege was ever equal to that of controlling the currency of seventeen millions of people, and making money plenty or scarce at pleasure? What privilege could be compared to that of controlling the value of all property in the nation, and raising or falling lowering prices at pleasure, of controlling the credit of every man in the nation, and raising or depressing it at pleasure? What privilege could be compared to that of making money out of nothing, and almost without limit, and loaning it at usurious rates of interest? Such are some of the privileges conferred on our banks by law; compared to which the feudal privileges of the barons of other days and other lands were insignificant baubles.”
This historical warning resonates today. Just as banks once wielded disproportionate power, blockchain could confer similar privileges to a small group of asset holders if left unchecked.
We advise extreme caution when accepting any form of currency not backed by real-world assets (RWA). Under the right circumstances, blockchain can enhance business operations. But without proper guidance and understanding, businesses risk significant damage. For this reason, we recommend stablecoins such as USDC—digital assets with equal exchange value (1:1).
Forcing consumers to transact in volatile assets like Bitcoin or Ethereum is absurd. As another historical voice cautioned:
“If there were nothing but gold and silver (Bitcoin and Ethereum) in the country, the banks would be limited to what could be paid by gold and silver, and the owners of gold and silver (Bitcoin and Ethereum) would be the only persons who could employ workmen.”
In other words, large holders of digital assets could become economic masters, crippling the dollar and pushing society toward a crypto dystopia.
Risks of Overreliance on Crypto
- Less than 1% of the general population truly understands blockchain digital assets.
- If the United States were to become the “crypto capital of the world,” we would cede our dollar to tech companies that lack consumer protection standards.
- Eliminating Visa or Mastercard may appear liberating, but the average consumer is not responsible enough to become their own bank. Criminal actors would exploit such vulnerabilities.
- A country based solely on crypto would be, in effect, a hacker’s dream.
No bank is perfect, yet the risks of replacing traditional consumer banking with unregulated alternatives are far greater.
A Practical Path Forward
For small business owners, the safest way to leverage blockchain is through stable coins backed by RWA. This approach ensures equal exchange value, immediate payment, and reduced exposure to volatility. Accepting Bitcoin or Ethereum, by contrast, exposes businesses to risks from market crashes, wallet bankruptcies, bugs, or even grid failures.
Moreover, speculative assets complicate tax obligations. Accepting Bitcoin or Ethereum can trigger complex cost basis calculations for capital gains and losses. Only experienced users should navigate such speculative markets. For the average small business owner, the wiser path is to avoid speculation altogether.
Even major institutions recognize this. Vanguard, for example, has declined to accept Bitcoin as an ETF, signaling caution at the highest levels of finance.
At I Am Humans, we take a minimal approach to blockchain and digital assets. We do not deny that some businesses may successfully leverage Bitcoin or Ethereum. But for newcomers, the safer route lies in stablecoins backed by real-world assets. This path mitigates risk, ensures fair exchange, and avoids unnecessary complications.