Crypto Tribalism 101

6 min readSep 14, 2023

Ah, cryptocurrency tribalism and the great debate(s)!

If you’ve dipped your toes into the crypto world, you’ve probably noticed that people here can be a tad passionate about their favorite digital coins.

At the heart of crypto tribalism lies the epic battle between Bitcoin maximalists and altcoin aficionados. This is the never-ending rap feud between two rival factions —it’s our Biggie vs. Tupac, but with more decentralized ledgers and slightly fewer murders.

Who are Bitcoin maximalists?

Those who believe that Bitcoin is the Alpha and Omega of cryptocurrencies. To these wealthy individuals, it’s not just digital gold; it’s the only digital gold. Bitcoin’s the original and all other coins are mere imitations. Satoshi Nakamoto is a god.

And these altcoin enthusiasts?

On the flip side, altcoin enthusiasts argue that Bitcoin is just the tip of the crypto iceberg. They see other coins like Ethereum, Cardano, XRP, and Solana as innovative, potentially world-changing projects. They’re the folks who’ll tell you that Bitcoin’s technology is like the Model T compared to their sleek Teslas.

And most notably, they are the ones proclaiming that “Altcoin Season” is coming soon — or if there’s a 5% pump on the daily charts…it’s already here 👀.

Now I’ve made my popcorn — where’s the show?

Twitter (X) is the virtual battlefield where these tribes wage their wars.

On the macro level, there are the blockchain maxis. Follow the social leads from every chain and soon a casual scroll through your feed will transform into a heated debate about block size, transaction speed, or the virtues of their particular form of decentralization.

Grind further down to the micro level and you’ll find the battles of alts, meme, and shitcoins galore: Bear-market and exploit-victim bagholders must shill their hodl or die, bull-market moonbois proclaim their current buy the 1000x, while the rest are pulling a Pena rug (“going to f**king zero!”).

Btw, the sheer amount of jargon and insider references above are clear examples of social markers used to differentiate the crypto tribes from the non-crypto tribes — which is another war not yet begun as the crypto tribes must firmly unite before that can happen (and it will).

Where does all this tribalism come from?

Tribalism itself is deeply rooted in ancient and modern human society. Religions have their zealots, political parties their partisans, sports teams their die-hards, and races their racists. These different manifestations of tribalism all spring forth from human nature and nurture in parts.

For crypto tribalism, more specifically, it comes down to the Three Bs: bagholding, belonging, and bubbles.

1. Investment Bias (Bagholding): Many of us have significant financial stakes in our chosen cryptocurrencies. And when significant investments are at play, emotions tend to run high. A rise in the value of one’s holdings often fuels tribalism as we become more protective and defensive about our choices (see: boasting). A drop in the value spawns a sort of nervous desperation and the ever-prevailing regret avoidance and sunk-cost fallacy. These biases are ever more amplified by prolonged bull and bear markets.

2. Identity and Community (Belonging): Human beings naturally seek belonging and identity. In this rapidly evolving mostly-anonymous Web3 space, we find a sense of community and belonging within our respective cryptocurrency tribes (and Discord servers). This community becomes a part of our identity, further intensifying our attachment. Eventually our investment has little to do with the actual token itself, but more of staying loyal to the community we increasingly need.

3. Information Echo Chambers (Bubbles): Social media and online forums, like Twitter or Discord, are often sources of bias confirmation where we interact primarily with those who share our views. This amplifies crypto tribalism as we are less exposed to opposing viewpoints and investment strategies, which can be crucial checks and balances for individuals making significant investment decisions.

Consequences of Cryptocurrency Tribalism

In the end, no matter what the cause of the crypto tribalism, the pain is real, folks 👇

1. Stifled Innovation: The intense rivalry among cryptocurrency tribes can stifle innovation and collaboration in the blockchain space. Projects become reluctant to cooperate with one another, hindering the development of comprehensive solutions.

2. Hostility and Toxicity: Tribalism often devolves into toxic online behavior, including trolling, harassment, and personal attacks. This behavior not only harms real people but also tarnishes the reputation of the crypto community as a whole. Worth noting here also is that bear markets lead to liquidity fragmentation, which means that the overall pie (TVL) gets smaller and the remaining crypto tribes are just fighting amongst themselves for the crumbs. More hostility and toxicity ensues, plus a dash of the next consequence 👇.

3. FUD-bearing Market Volatility: In many cases, the dissemination of fear, uncertainty and doubt (FUD) against a “rival cryptocurrency” can also lead to extreme price volatility as sentiments swing wildly in response to news and events related to specific cryptocurrencies. This volatility can negatively affect both traders and long-term investors — especially in cases where crypto users add on to the damage by “Fudding their own bags”, a strange phenomenon in which the dissemination of fear turns inward against the investors’ own best interest (something unique to crypto afaik).

In the end, all of these consequences can be avoided with a little bit of peace, understanding, and a rampant return of the bull.

Here are some solutions to try in the meantime while we wait for the “mainstream to get onboarded” 🙄.

Temporary Patches to Cryptocurrency Tribalism

1. Education: Promote education and awareness within the crypto community to help individuals make informed choices. Encourage a better understanding of the technology and the diversity of projects within the space.

2. Diversification: Spread the good word about healthy diversification of cryptocurrency portfolios. Encourage individuals to explore and invest in a variety of projects rather than placing all their bets on a single one.

3. Interoperability: Advocate for greater interoperability between blockchain projects. Collaboration can lead to more robust and versatile blockchain solutions that benefit everyone. This can also increase the possibility of onboarding the wealthy normies.

4. Civil Discourse: Promote civil and respectful discourse within the crypto community. Online platforms should actively moderate and discourage toxic behavior. These are the two bland solutions that aren’t that effective. Secure your financial platforms and create transparent, well-thought-out tokenomics — these are the game-changers.