Category Archives: Crypto

Whitewashing

The Democrat machine swings into action to preserve Sam Bankman-Fried from any consequences from the collapse of FTX. I can scarcely believe the nerve of these people, but after all this is the Hillary Clinton tradition. Add this to the list of howls of outrage. The New York Times Confirms SBF To Speak Alongside Zelenskyy, Yellen,

Lehman II?

The second-largest crypto exchange, FTX, has halted withdrawals and appears to be bust. Formerly valued at $32 billion, one must assume that it is now worth a lot less than that. The largest exchange, Binance, negotiated a non-binding bailout agreement and then withdrew it after a look at the books. I wonder if this is crypto’s Lehman moment? The time when the fantasy meets hard, cold reality?

Edit: FTX has/had more than five million customers worldwide. The Miami Heat’s home stadium, named FTX Arena, will be getting a new name. Porn movie producers Bang Bros. tweeted that their 2019 $10 million bid for the naming rights was still good, and they added that they promised that a lot fewer people would be f***ed.

Fun With Crypto

It seems obvious that cryptocurrency bears a strong resemblance to a Ponzi scheme. The defining characteristic of a Ponzi scheme is the requirement for new money to fund withdrawals, and of course all crypto that is not backed by cash – some of the “stablecoins” are – meets this criterion. The big difference is that this is no secret, unlike a true Ponzi scheme there is no fraud, no Bernie, at least in the underlying concept, which is fully disclosed.

There is, however, massive fraud by people taking advantage of the largely unregulated nature of crypto.

Bitcoin Energy

I saw this piece about a planned Bitcoin “factory” in Texas.

Still, 800 locals have signed a petition against plans to built America’s largest bitcoin-mining facility — a facility which will consume 1.4 million gallons of water a day and 1 gigawatt of electricity (enough to power 200,000 homes).

This is just pure waste to support a giant Ponzi scheme. Isn’t it time to call a halt to all these frauds?

The Wild West Of Crypto

The world of crypto is fraught with scams. Here is a website, “Web3 is going just great,” which is keeping a journal of reported scams and frauds since the beginning of 2021. It includes a running total of the losses involved, $9.875 billion as of this writing.

The Digital Economy

Zuckerberg said that Meta (Facebook) will make significant losses in coming years as it invests heavily to build “the digital economy”. He implied that the excess expense would include subsidizing the virtual reality headgear needed to experience Meta’s virtual world(s).

We have something of a digital economy today. Crypto tokens, NFTs that include digital avatars and clothing for them, digital real estate and even digital yachts presumably navigating digital seas. Most of what you need in a digital world. Fortunately mundane things like food and water or fuel are not required, just a lot of imagination.

Will it make the kind of huge business needed to pay out those billions to be invested? I don’t know, I like my life real. Even it is dangerous and challenging. Zuck’s vision seems to me to be a sad imitation of reality.

 

Fun With Crypto

Crypto entrepreneur Sina Estavi purchased a non-fungible token (NFT) of Twitter founder Jack Dorsey’s first ever tweet for $2.9 million in March 2021. Last Thursday, he announced on Twitter that he wished to sell the NFT, and pledged 50% of its proceeds to charity. He listed it for $48 million. According to a report from CoinDesk, the auction closed Wednesday with just seven total offers ranging from 0.09 ETH ($277 at current prices) to 0.0019 ETH (almost $6). Estavi has two days to accept the bid, or it will expire.

Edit: As of today, 4/18, bidding has re-opened with a high bid of 10 ETH, $30,739.

Your Call

Headline this morning read “Over $320 million stolen in hack of blockchain platform Wormhole.” Now that’s a bit larger than usual, but there is an ongoing drumbeat of similar headlines. As someone pithily said, “If you’re involved with cryptocurrency you’re either a grifter or a victim.” Your call.

Back To Normal?

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Thanks to Sven Henrich, Northman Trader

Well Said

Mozilla co-founder Jamie Zawinski has some strong feelings about the matter, [telling TechRepublic]: “Anyone involved in cryptocurrencies in any way is either a grifter or a mark. It is 100% a con. There is no legitimacy.”