Bitcoin’s belated bust

It’s been quite a big week in cryptocurrency markets. The price of Bitcoin has fallen close to $4000, down from a peak of nearly $20 000.

As a longstanding sceptic of cryptocurrencies, it might be thought that I would be taking a victory lap. After all, I have previously written that “Bitcoins will attain their true value of zero sooner or later, but it is impossible to say when.” With the Bitcoin price having fallen by 75 per cent, it might seem that my prediction is well on the way to being justified.

Unfortunately, the second part of my statement, about the impossibility of predicting timing has been proved definitively correct.. I wrote this in 2013 when Bitcoins were valued at around $100, and the total market capitalization was a mere billion dollars. A single wealthy individual could have driven the price to zero by short-selling.

Five years later, and despite the price collapse of the past few months, Bitcoins are selling at nearly 50 times the price I criticized as excessive. Moreover, as cryptocurrencies have proliferated, Bitcoin now constitutes only a fraction of the total market. The capitalization of the cryptocurrency market as a whole is fluctuating still close to $100 billion.

Yet this massive valuation is built on nothing. The idea that Bitcoin, or any of its competitors will provide a new and superior means for buying and selling goods and services has been tested to destruction. Nearly a decade after the currency was launched, the use of Bitcoin in purchases is modest, and rapidly declining.

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Trolls (crosspost from Crooked Timber)

I’ve decided that life is too short for me to deal with any more trolls. From now on, I’m following the same zero[1] tolerance policy regarding blog comments as I do on other social media. Snarky trolling comments will lead to an immediate and permanent ban from my comment threads.

More generally, I’ve come to the conclusion that the best way to look at the ‘Intellectual Dark Web’ and what remains of the Republican intellectual class is the light of my experience as a blogger.

Put simply. the IDW and others are trolls. Their object is not to put forward ideas, or even to mount a critique, but to annoy and disrupt their targets (us). As Nikki Haley observed, a few months before announcing her resignation as UN Ambassador, it’s all about “owning the libs

Once you look at them as trolls, it’s easy to see how most of the right fit into familiar categories. They include
* Victim trolls: Their main aim is to push just far enough to get banned, or piled-on, while maintaining enough of an appearance of reasonableness to claim unfair treatment: Christina Hoff Sommers pioneered the genre
* Concern trolls: Jonathan Haidt is the leading example. Keep trying to explain how the extreme lunacy of the far right is really the fault of the left for pointing out the lunacy of the mainstream right.
* Quasi-ironic trolls: Putting out racist or otherwise objectionable ideas, then, when they are called out, pretending it’s just a joke. The alt-right was more or less entirely devoted to this kind of trolling until Trump made it acceptable for them to drop the irony and come out as open racists.
* Snarky trolls: Delight in finding (or inventing) and circulating examples of alleged liberal absurdity, without any regard for intellectual consistency on their own part. Glenn Reynolds is the archetype in the US, though the genre was pioneered in UK print media by the Daily Mail’s long running obsession with ‘political correctness gone mad’
* False flag trolls: Push a standard rightwing line, but demand special consideration because they are allegedly liberals. Alan Dershowitz has taken this kind of trolling beyond parody
From what I can see, the latest hero of the Dark Web, Jordan Peterson, manages to encompass nearly all of these categories. But I haven’t looked hard because, as I said, life is too short.

I’ve used US examples here, but most of them have Australian counterparts. Feel free to point them out.

fn1. Not quite zero. Commenters with a track record of serious discussion will be given a warning. But, anyone who wastes my time will be given short shrift

Brexit: this is it?

Since the Brexit referendum was hailed by many as representative of a new force in global politics, it’s of interest even on the far side of the planet, and I’ve watched the slow-motion train wreck with appalled fascination.

So, as far as I can tell, the Brexit deal Theresa May has come up with is pretty much the super-soft version. About the only immediate change it will produce is a return to blue passports in place of the EU burgundy, which, it appears, were always optional. And, it appears, the new passports will be printed in France.

All that assumes that the deal will go through. In this context, I’ve been struck by a lot of commentary supporting the deal on the basis that a second referendum isn’t feasible due to the timing requirements of the Referendums Act. Am I missing something here? Isn’t Parliament supreme? And given that this issue has consumed British politics for the last two years or more, can there really be any significant ambiguity about the possible choices articulated by May today: her deal, no deal or no Brexit?

Feel free to comment on these or any other aspects of the issue.

Armistice Day

It’s 100 years since the Armistice that brought an end to fighting on the Western Front of the Great War. Ten million soldiers or more were dead, and even more gravely wounded, along with millions of civilians. Most of the empires that had begun the war were destroyed, and even the victors had suffered crippling losses. Far from being a “war to end war”, the Great War was the starting point for many more, as well as bloody and destructive revolutions. These wars continue even today, in the Middle East, carved up in secret treaties between the victors.

For much of the century since then, it seemed that we had learned at least something from this tragedy, and the disasters that followed it. Commemoration of the war focused on the loss and sacrifice of those who served, and were accompanied by a desire that the peace they sought might finally be achieved.

But now that everyone who served in that war has passed away, along with most of those who remember its consequences, the tone has shifted to one of glorification and jingoism, exemplified by the proposal that current and former military personnel should have priority boarding rights in air travel.

In part, this reflects the fact that, for countries like Australia, war no longer has any real impact on most people. As in the 19th century, we have a small professional army fighting in faraway countries and suffering relatively few casualties. Tens of thousands of people may die in these conflicts, but the victims of war impinge on our consciousness only when they seek to come here as refugees, to be turned away or locked up.

In the past, I’ve concluded message like this with the tag “Lest we Forget”. Sadly, everything important has already been forgotten.

Update I haven’t heard Scott Morrison say much that I agree with. But his observation that “War is always a failure of our humanity” was one of the better responses to today’s centenary, and gives me some hope that the lessons of the Great War have not been totally forgotten.

Time to join the generation game? Definitely

A little while ago, I partially recanted my long-standing rejection of the idea that “generations” are a useful way of thinking about such issues as political attitudes. The UK elections showed a very strong age effect, reflecting the way that the politics of nostalgia, represented by Brexit, appeal to the old and appal the young.

The same appears to be true of “Make America Great Again”, at least according to the exit polls. In every racial group, there’s a clear cohort effect, with the younger cohorts favouring the Democrats.

& Exit poll results, by age and race

The Republicans had majority support only among whites over 45.

The age effect would probably be a bit smaller if education and urban/rural location were taken into account, but it’s still striking.

Regarding the political implications I said last time

If current demographic trends continue, and nothing else changes, the political right will be doomed by demography to permanent minority status. That’s possible, but one-party dominance has rarely lasted long in the countries I’m talking about. And, as Stein’s Law has it, if a trend can’t continue, it won’t.

So, a long period of leftwing success would presumably produce a political realignment in which culture war issues are no longer a dividing line. On the other hand, if leftwing governments are elected and fail to deliver on their promises (or worse, implement their promises and fail disastrously) their support among currently young cohorts may be replaced by permanent oppositions.

Of course, this assumes that democratic processes survive long enough for these demographic processes to do their work.