8 thoughts on “The Bitcoin Monster, updated

  1. Just for balance

    Bitcoin is expected to become a zero-emission network: Report


    Northern Irish farmer Owen, who began trialing Bitcoin mining, partnered with Scilling Digital Mining, an Irish company which looks for renewable energy to use for Bitcoin mining. “Daniel [Batten] has done work showcasing Bitcoin mining’s methane capture capability. The plaudits for these energy consumers are only just beginning, and Ireland’s farmers could be the next adopters of this technology,” Mark Morton, managing director, Scilling, said.

  2. “On the basis of information by Cointelegraph, the report is based on data from Bitcoin Mining Council to get an idea….”

    Give it a rest Birdy.

  3. Blow Joe, with a hand on the un balancd biased scales, tells us to read a  report by a paper with “editorial positions that favor the conservative government.”… which …”Currently, 36 percent of daily newspapers earn over half of their total income from the government of India”….”Influential politicians linked to bitcoin scam: Congress accuses BJP of cover-up” and throw in a tainted ex Director of the Securities and Exchange Commission’s Division of Corporation Finance who is still legally acting for crypro in a legal capacity – “William Hinman was cautioned about a conflict of interest with his old firm Simpson Thacher.” and now assists

    Andreessen Horowitz in  “our portfolio companies as well as play a key role in shaping the future regulatory environment in which we and they operate.”

    Dont forget “Former U.S. Treasury Secretary Larry Summers became a special advisor to Andreessen Horowitz in June 2011”

    Links below. 

    All a bit-bacco crypto Joe. Hardly worth a sandpit.

    And of cow farts turned into into speculative volatile (geddit) arssets to be sold as a way of fixing climate externalities. For balance! lmfao.

    Rating: Stinky & Smelly.

    JQ, would you instigate a new rule re no crypto posting without proper attribution or independence vs conflict statement, owners and advisors.
    *

    “Overall, we rate the Financial Express Right-Center Biased based on story selection and editorial positions that favor the conservative government. We also rate them Mixed for factual reporting due to poor sourcing techniques and four failed fact checks. (10/30/2016) Updated (D. Van Zandt 10/01/2021) ”
    https://mediabiasfactcheck.com/financial-express/
    *

    Joe Blow – dupe of BJP. Didn’t think to check balance, blown joe? No. Damaging democracy via bright shiny things. And cow farts.
    *

    “Media Bias and Democracy in India

    “Meanwhile, political parties capitalize on this bias to influence public attitudes and further their own power. The BJP spends almost USD $140 million on publicity per year, with 43 percent of this expenditure focusing specifically on print ads in newspapers. Government advertisements serve as a financial lever for influencing media content and public opinion. For example, during the year leading to the 2019 elections, newspapers that received more advertisement revenue from the BJP were likelier to espouse more conservative ideology and to have more conservative readers.

    “Currently, 36 percent of daily newspapers earn over half of their total income from the government of India and most major TV stations have owners who served as politicians themselves or who had family members in politics.

    https://www.stimson.org/2021/media-bias-and-democracy-in-india/
    *

    “Influential politicians linked to bitcoin scam: Congress accuses BJP of cover-up

    “The allegations come at a time even though there is at least three serious growing discontentment over portfolio distribution, lack of funds being released for development works and rumblings over the projection of the incumbent as the next chief ministerial candidate within the BJP ranks against Basavaraj Bommai, who was chosen by overlooking several seniors within the party.

    https://www.hindustantimes.com/india-news/influential-politicians-linked-to-bitcoin-scam-congress-accuses-bjp-of-coverup-101635447888269.html

    William Hinman ex Director of the Securities and Exchange Commission’s Division of Corporation Finance, has tripped over conflict of interest, and advised and potentially has a conflict of interest in joe blows cointelegraph laced article by BJP supported “news”.

    Just search for money trail > cointelegraph > crypto360 > legal and financial backers. Most “for” articles have front names and default to a bit*** address pumping out the joe blows’ of the world bait. Which some joe blows fall for.

    Crypto – dangerous simply due to the fact of such conflicts and lack of regulation. To wit…

    “SEC officials had warned Hinman about a conflict of interest because of his ties to Simpson Thacher.

    “In a statement, the organization stated that the emails indicate that former SEC official William Hinman was cautioned about a conflict of interest with his old firm Simpson Thacher. 

    “Empower Oversight filed for the release of the emails, stating that it could prove the SEC was selectively enforcing laws for the crypto sector. The organization argued that there is a possibility that the SEC was promoting some cryptocurrencies over others.

    Hinman reportedly “continued engaging with the New York-based law firm despite the concerns. Among the high-profile engagements, Hinman met the law firm’s other partner Josh Bonnie in the wake of the warning alongside the co-founders and investors in Ethereum.

    https://finbold.com/ripple-scores-a-win-as-new-emails-prove-secs-conflict-of-interest-in-crypto-regulation/

    William Hinman bio at
    “Former Director of the Securities and Exchange Commission’s Division of Corporation Finance, Bill Hinman 

    …”including technology, e-commerce, digital assets, healthcare and life sciences. He played a lead role in the IPOs of Alibaba, Facebook, Google, eBay, Square, Agilent, Seagate and VMware, among many others.”

    https://www.stblaw.com/our-team/news/william-h-hinman

    William Hinman joins Andreessen Horowitz…
    “as an advisory partner to the crypto team.

    “Bill spearheaded the SEC’s early work with digital assets, and made critical contributions that provided clarity to companies operating in the space.

    “Bill will provide valuable insights to us and our portfolio companies as well as play a key role in shaping the future regulatory environment in which we and they operate.”
    *

    “Polychain lost $400 million investing in crypto and still beat the market
    . ..
    “Andreessen Horowitz has focused on core services, like money, exchanges, loans, and digital currency storage. Portfolio companies include Coinbase (one of the largest crypto exchanges in the US), Filecoin (a long-delayed peer-to-peer digital storage system), and Maker (an over-collateralized cryptocurrency, which is meant to retain a peg to the US dollar). ”
    Quartz – qz dot com

    “Former U.S. Treasury Secretary Larry Summers became a special advisor to Andreessen Horowitz in June 2011.[90]

    “In May 2022, the firm announced the launch of its largest fund to date at $4.5 billion. The fund is set to focus on cryptocurrency and blockchain technologies. The firm stated that $1.5 billion was allocated to seed investments while the remaining $3 billion would be earmarked for venture investments.[84]”
    Wikipedia

  4. Hi K2,

    Enjoying your take down. I should point out that we – or at least I – was taking about Bitcoin, not ‘crypto’, so most of what you wrote is pretty irrelevant. Much of ‘crypto’ is a definite scam, or at least ill advised, but if you want to conflate the two, that’s on you, not me. As I said previously, it’s a complicated topic.

    Yeah – I don’t tend to look for mainstream media opinion on this. The mainstream take is JQ’s after all!

    If you think converting cow farts to bitcoin, or repurposing dozens of small hydro plants in the Swiss alps to mine Bitcoin in the off peak hours – thus helping the bottom line of those cantons, or petroleum companies and states such as Qatar starting to turn waste flared gas into income – reducing methane emissions by more complete burning, plus hundreds of other examples – is all BS, well – OK.

    Maybe you should write to the CEO of EPCOT (Texas grid) and tell him that he is wrong as well.

  5. For balance, Forbes says;

    “More Than Half Of All Bitcoin Trades Are Fake

    “A new Forbes analysis of 157 crypto exchanges finds that 51% of the daily bitcoin trading volume being reported is likely bogus.

    “As part of Forbes research into the crypto ecosystem using 2021 data, we ranked the 60 best exchanges in March. More recently we conducted a deeper-dive into the bitcoin trading markets to answer a few pressing questions: …”

    https://www.forbes.com/sites/javierpaz/2022/08/26/more-than-half-of-all-bitcoin-trades-are-fake/

  6. “If the main driver is profit, then that does incentivize potentially toxic behaviors within the gaming ecosystem.”^1

    Such as “poor people pretending to be non-player characters to give richness to the in-game experience of wealthy people.”^2.

    ^1. From:
    “They built a Minecraft crypto empire. Then it all came crashing down

    “Kids in the Philippines were earning hundreds of dollars from a play-to-earn Minecraft game, until new rules sent the community into a tailspin
    https://restofworld.org/2022/minecraft-nft-ban-critterz/

    ^2. Via Cory Doctorow

    “The horrifying tale of a blockchain-based virtual sweatshop 

    “some wild ideas are emerging, straight out of the Torment Nexus. For example, Desai talked to Mikhai Kossar, who consults on NFT games. Kossar proposed that the future of play-to-earn might be poor people pretending to be non-player characters to give richness to the in-game experience of wealthy people. They could “just populate the world, maybe do a random job or just walk back and forth, fishing, telling stories, a shopkeeper, anything is really possible.”

    https://pluralistic.net/2022/09/08/torment-nexus/#irl

  7. Paul Krugman yelling at the false balance.

    Quotes with links.

    Will blockchains become a bloated and power hungry?

    “Nobel laureate Paul Krugman has slammed bitcoin as pointless, wasteful, and in large part a Ponzi scheme. Here are the economist’s 12 best quotes about crypto over the past decade.

    “4. “Cryptocurrencies have no backstop, no tether to reality. Their value depends entirely on self-fulfilling expectations — which means that total collapse is a real possibility. If speculators were to have a collective moment of doubt, suddenly fearing that bitcoins were worthless, well, bitcoins would become worthless.” (“Transaction Costs and Tethers: Why I’m a Crypto Skeptic”) (July 31, 2018)

    https://markets.businessinsider.com/news/currencies/paul-krugman-nyt-bitcoin-crypto-digital-payments-fraud-ponzi-scheme-2022-9

  8. The crypto cap now has a big D on it – 
    “The researchers created a variable called Dthat captures the “moneyness” of a currency:”
    *

    “Stablecoins Survived ‘Crypto Winter,’ But That Doesn’t Make Them Safe
    … But according to new research by Yale SOM’s Gary Gorton, these “stablecoins” still pose major risks to the global financial system.

    “To Gorton, the complex technology behind stablecoins has prevented us from seeing a simple truth: they are no different from the private currencies of the free banking era. “That’s the last time there was privately produced circulating money,” he says. “And stablecoins are also privately produced circulating money.”

    “In the paper, Gorton and his co-authors find that private banknotes and stablecoins are following similar trajectories. The researchers created a variable called Dthat captures the “moneyness” of a currency: qualities including its price, how easy it is to use in practice, and the likelihood that another party would accept it with no questions asked. Over time, D decreased for private banknotes, meaning that they became more money-like. The researchers found that same is happening for stablecoins, although it’s still early days.

    “Decreases in D, they argue, stem partly from technological shifts. For private banknotes, “it was mostly because of the railroad, which allowed you to get notes back to the issuing banks faster,” Gorton explains—creating less uncertainty about whether they could be redeemed successfully at face value. In the case of stablecoins, improved graphics processing units have made it faster to mine Etherium and convert it to, say, Tether, resulting in greater efficiency.

    “Reputation formation also reduces D, the researchers note.

    But stablecoins becoming more money-like doesn’t mean they improve on government-issued currency, Gorton and Jeffrey Zhang of the University of Michigan Law School write in another recent publication. They argue that—time and again, and across many countries—a government monopoly on issuing money has been shown to provide needed financial stability and allows for necessary control over the money supply.”

    https://insights.som.yale.edu/insights/stablecoins-survived-crypto-winter-but-that-doesnt-make-them-safe

    Paper.
    “Making Money”

    Gary B. Gorton, Chase P. Ross& Sharon Y. Ross
    https://www.nber.org/papers/w29710

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