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4 Philosophical Razors You Can Apply To Your Crypto Investments

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philosophical razors

Key Takeaways

  • Apply four of the hand-picked philosophical razors that you can use to evaluate your crypto investments.
  • These philosophical principles aim to minimize complex concepts and make informed decisions in the crypto space.

Crypto experts often get asked how they can assess whether a new coin or crypto project is a scam. One thing they like to do is follow philosophical razors, which are simple principles that can guide their thinking in complex situations.

Occam’s Razor

“The simplest explanation is usually the correct one.”

What’s the simplest explanation when you see a token’s price mooning? 99% of the time, it’s just hype and good marketing. The move is not really about technological progress.

Hanlon’s Razor

“Never attribute to malice that which can be explained by stupidity.”

When newbie investors invest in crypto projects that end up going down in price, they often call it a scam, and sometimes they are, and the project team was actually trying to rob their investors. 

However, quite a few failed token projects are not scams at all. Their tokens are more likely to have failed purely because the team made horrible decisions.

The Sagan Standard

“Extraordinary claims require extraordinary evidence.”

If you tell someone a new token they have never heard of is going to overtake Ethereum, you better be ready to show them some incredible open-source code, a world-class team, and the backing of leading investors and foundations.

Alder’s Razor

“If something cannot be settled by experiment or observation, then it is not worthy of debate.”

If you are not going to open-source your token project’s code, or at the very least allow other experts to view it, then there is no point in trying to argue whether it is a scam or not.

Final Thoughts

These philosophical razors sound like a high standard, but that is how cryptocurrencies need to work if we want to change how society interacts with money.

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