View profile

Bitcoin Influencers Are Destroying Crypto

CryptoWhale
CryptoWhale
Bitcoin’s noisiest advocates are destroying crypto with freedom porn, bad economics & fake history

Bitcoin began in 2008 as an idealistic mission to decentralize money away from governments. Something that remains little known to most, is that Satoshi Nakamoto actually cited the Bob Rubin Trade in the genesis block of Bitcoin. Bitcoin was fundamentally designed to be the financial ejector seat to the woes of modern, risk-smuggling capitalism, a mantle taken up by many early investors who saw Bitcoin as a revolutionary economic technology that would usher in an era of unprecedented financial freedom and liberty.
Unfortunately, Bitcoin and cryptocurrency more broadly, has fallen a long way from it’s stated ideals. The rise of the Bitcoin influencer immediately reflects this growing diversion. Many of these parasitic figures peddle the same copy pasta style of naïve libertarian nonsense: “Bitcoin is the ultimate tool for achieving financial freedom!”, “fiat currency is a pyramid scheme!”, “Bitcoin will make everyone disgustingly rich!”
Dennis Porter
Bitcoin will bring everyone together across political, geographical, and ideological boundaries.

Post hyper-#Bitcoin-ization we will experience incredible advances in human flourishing as we are incentivized to work, build, and plan together towards a bright orange future.
The biggest problem here is that none of these things are even close to true. Nakamoto’s dream of a fully decentralized financial world has been transmuted into a waking nightmare, where those who scream “financial freedom!” the loudest, are in fact the ones holding the vast majority of all available wealth.
A new sect of unregulated, predatory capitalism has emerged — one where the Bitcoin influencers are the new top-hat-wearing aristocrats, carelessly spurring their millions of FOMO-fuelled followers to buy into their increasingly speculative vision.
Fairy Tale Economics
Because Bitcoin has grown exponentially in value over the past decade, people have rushed in increasing numbers to scream the benefits of the digital asset from every available rooftop (primarily Twitter).
This had made Bitcoin celebrities, such as Saifedean Ammous & Robert Breedlove, immensely popular. They draw their followers in to their mythological world of Bitcoin in two ingenious ways.First — they create the ultimate axis of evil out of fiat currency & central banksgoing as far as to say that fiat money is both a ponzi-scheme & compelled speech. Second — they cherrypick and misrepresent specific events throughout history to make sure that every piece of relevant economic evidence feeds into their self-fulfilling prophecy,
They tie it all together by harnessing a combination of impressive, quasi-religious prose intertwined with seemingly complex economic theories. In doing so, they are able to paint a wildly convincing, almost intoxicating narrative of Bitcoin’s undeniable future prowess. Unfortunately for the broader community of crypto investors, the economic paradigm that they nest their unshakeable faith in Bitcoin upon is dangerously flawed.
In Saifedean‘s book ‘The Bitcoin Standard”, he points to the year 1971 as the most critical juncture in modern history. He argues until he’s red in the face, that the decision to separate ourselves from the gold standard in favor of fiat currency is the root of almost all modern ills.
Despite being completely unsupported by any empirical evidence, this claim is a common talking point among Bitcoin influencers. Sound money has extremely little to do with artistic production or preference. I’d like to remind Saifedean of a very well-known principle taught in every introductory science class around the world: correlation ≠ causation.
There’s even a website dedicated to this absurd principle:
Despite being populated by hundreds of graphs, charts and technical information it once again returns to the absurd idea that fiat currency is the root cause of every societal issue (oh and let’s not forget that Bitcoin is also the only solution).
Apart from the fact that a dangerously myopic interpretation of monetary policy cannot be used to explain all resulting social phenomena — these influencers, ideologues and idiots conveniently overlook the major causal event that occurred in 1971.
I want every last BitcoinBro who buys into the fairy tale of fiat currency being the root cause of all inequality to brand the following words into their brains.
In 1970 an act that changed the future of America was passed in Congress. This was called the Legislative Reorganization Act of 1970 (also ironically known as “Sunshine Laws”)
After this act was passed, for the first time in American history — external influences, lobbyists, and foreign companies were given massively increased transparency into the American legislative process. They were allowed to attend committee markup sessions, monitor the majority of committee votes and express their will on laws being passed in Congress.
This vast increase in “transparency” completely eroded the democratic dynamics of lawmaking and enormously enhanced the ability of outside lobbyists and powerful entities to influence the legislative process.
The following graphs represent the types of change that this colossal legislative restructure caused:
Even from a cursory glance, this evidence is far more substantial and causation-based than the conspiratorial “FiAt = BaD” garbage peddled by hopium-addicted Bitcoin influencers.
The Myth of “Decentralization”
The next most misleading tactic that Bitcoin influencers engage in, is exalting the false idol of “decentralization”, as if this word means that every single human being alive can achieve untold levels of financial wealth just by owning some Bitcoin.
‘Decentralization’ is just a term that describes how a blockchain network functions. It has absolutely nothing to do with how much cryptocurrency is allocated to, or owned by any one person. By broadly claiming that Bitcoin is “decentralized”, they mislead many young and impressionable investors into thinking that the value of Bitcoin is somehow ethereal — entirely seperate from the principles of supply, demand and market irrationality.
Just because no one person can “own” or exert direct, centralized control over Bitcoin, does not mean that the current price of Bitcoin is not heavily inflated by speculative trading, or that it cannot be heavily manipulated by malicious actors.
Currently, the top 10,000 wallets own 60% of all mined Bitcoin, and whales continue to concentrate the total Bitcoin supply into their own wallets.
While crypto influencers and whales continue to peddle the narrative of financial freedom for all, they’re the ones that seek to gain the most from their cultish, neo-pagan propaganda.
Fooled By Returns
The biggest problem with Bitcoin influencers is that they are so addicted to their profound returns that they seem to have mistaken their good fortune for some immutable, indestructible truth. They will continue to foolishly conflate luck with skill and take on increasing volumes of risk until something blows up.
Just because someone has made a lot of money off Bitcoin does not automatically mean that this trend will continue to occur, and the promise of 1000%+ returns for retail investors jumping in at the top of the hype train becomes less likely with every passing day.
To be fair, the majority of the crypto community is also complicit in this. We have become addicted to euphoric returns on tokens that are yet to deliver any real-world utility, and we are so eager for more profit that we don’t want to lift the lid and look at the speculative, predatory mess that crypto is becoming.
Let’s face it. The infinite supply of freedom porn peddled by Bitcoin advocates may be nice to daydream about when were scrolling #cryptotwitter, but it will do absolutely nothing to steer the ship away from the rocks.
The Dichotomy of Failure
Ultimately, it’s the dichotomy between what Bitcoin influencers say and what they do that scares me the most. Bitcoin’s highest disciples parade their hatred for fiat money around like it’s a moral virtue. Yet they are blind to the very same fractional-reserve banking practices occurring within crypto markets right now, with hundreds of billions of dollars in short-term-debt-backed Tether artificially and fraudulently inflating markets. They will tweet about financial liberation until their thumbs bleed, and yet they say nothing about the increasing corruption and predatory behaviour emerging in every sector of the crypto economy.
It makes sense that the unregulated, ‘Wild West’ of crypto has become a haven for financial idealists and con-men alike. However we are rapidly approaching a point of critical mass. If Bitcoin whales and influencers don’t begin to self-regulate and cut out the rot in the community, then things are going to get dangerous.
The SEC is coming down hard on crypto, with a massive slew of incoming regulation. The world’s largest financial institutions are withdrawing economic support for countries that purchase Bitcoin with public money, and China has just announced that every last crypto transaction is now illegal.
Instead of working to democratise the process — by distributing Bitcoin to the community in meaningful ways or looking for methods to stabilise the volatility of the currency — what are the Bitcoin influencers and elites doing?
They’re merging with same people and institutions that Satoshi Nakamoto despised from the outset. A Bitcoin ETF is on it’s way and already, conglomerated funds like Grayscale Bitcoin Trust allow gargantuan firms to purchase Bitcoin for well below it’s Net Asset Value (NAV) and game the system.
Bitcoin influencers and the elites they serve, have become nothing more than pseudo-libertarian versions of the Wall-St Bankers that Bitcoin once sought to free us from. If crypto was truly achieving it’s stated aims of financial freedom and the real decentralization of money we’d be inhabiting a different world.
Twitter wouldn’t be overflowing with Bitcoin influencers posting pictures of their “gain-porn” and tweeting rocket emojis every time Bitcoin jumps $100 in value. We’d be living in a world where drug-addicted con artists like Michael Saylor and Max Keiser would be burning out the rot and tearing the corrupt team of swindlers at Tether to shreds.
Thank you everyone for reading! We have plenty of more articles coming soon, so stay tuned. I want to give a special shoutout to my friend ginsbergonomics, who I’ve partnered with on this newsletter.
He posts tons of unbiased content and is very well-versed in the crypto sphere. I highly recommend following him if you haven’t already.
Have a great day everyone!
Don’t miss out on the other issues by CryptoWhale
Did you enjoy this issue? Yes No
CryptoWhale
CryptoWhale @cryptovinco

#1 Finance Newsletter - Join Over 230,000+ Subscribers in Staying Up To Date On Everything Crypto and Stock Related.

Subscribers will receive weekly insights into must-read crypto news events, Bitcoin and altcoin price predictions, market research, and contrarian financial perspectives.

www.twitter.com/cryptovinco
www.twitter.com/whalewire

You can manage your subscription here.
In order to unsubscribe, click here.
If you were forwarded this newsletter and you like it, you can subscribe here.
Created with Revue by Twitter.