Bitcoin and other crypto-The CR thread

[elguapo 4,586]

6 minutes ago, Immaculate Vibes said:

It’s backed by cryptography/math and a set of defined rules. It’s not controlled by a small group of unaccountable individuals. How has J Powell been doing? Really nailed that inflation call. 

[jimmyjazz 45,974]

All I know is, when pro athletes start taking their compensation in crypto, it might be time to head in the opposite direction.

[Immaculate Vibes 114]

6 minutes ago, jimmyjazz said:

All I know is, when pro athletes start taking their compensation in crypto, it might be time to head in the opposite direction.

A decent local top signal. Also, when arenas sign contracts with crypto exchanges. If Odell sticks with it he’ll be up long term though. 

[Genco 3,041]

13 minutes ago, Brisketexan said:

but you just described how we get actual bullshit, which is functionally little different than the metaphorical bullshit you're peddling.

Yeah but there's an actual intrinsic value to the commodity of bullshit. 

[Tom 2,959]

Apologies if this has been discussed here, but what happens when grandma, who forgets her Facebook password every other day and needs her kids' help getting back in, loses or forgets her private keys and wallet info?  Is her money just lost out in the void forever?  As far as I know, unless you keep your money on an exchange, which many advise against, there's no "click here if you forgot all your shit" link that makes using crypto very user friendly.  I can see millions of people around the country flipping their shit when they can't access the wallet with their life savings in it. 

I like crypto as an investment and a quick way to make money, but I can't see how it can work as a default mainstream currency if money can so easily be lost.

[Brisketexan 105,154]

27 minutes ago, Immaculate Vibes said:

Also, when arenas sign contracts with crypto exchanges.

[Neonmoon 38,129]

lol, of course it all boils down to fiat currency is a scam and the federal reserve is a devilish cabal that drink babies blood

Who could of seen that coming?

Just listen to your friendly sovereign citizen!!

[wildcat09 29,355]

GR Horn:

[Immaculate Vibes 114]

3 hours ago, Brisketexan said:

Fill in these blanks:

Over the last year or so, the dollar has declined by ____% in value.

Over the last year or so, bitcoin has declined by _____% in value.

And "backed by cryptography/math and a set of defined rules" is just.....gobbledeygook bullshit.  That's not "backing" at all.  You just made an argument for the value of filled in coloring book pages -- they are backed by defined rules (color inside the lines) and a hurdle to complete them (instead of math, it's the human time it takes to color them).  IT'S.  ALL.  BULLSHIT.  You can tell me that it's "backed" by the bovine digestive system, and the risks/rewards of hay crops on an annualized basis, and having adequate infrastructure available to warehouse the means of production.......but you just described how we get actual bullshit, which is functionally little different than the metaphorical bullshit you're peddling.

The dollar is down 8.3% in purchasing power YoY. Bitcoin is down 13% YoY. 
 

As far as cryptography and math backing being bs, you’re still missing the point. That is what secures bitcoin. It’s agnostic. Anyone can use it. Or not.
 

Guns secure fiat currencies and their rules and supply can be changed any time. That’s the difference.  
 

2 hours ago, Neonmoon said:

lol, of course it all boils down to fiat currency is a scam and the federal reserve is a devilish cabal that drink babies blood

Who could of seen that coming?

Just listen to your friendly sovereign citizen!!

Central banking is the scam.
 

A decade of zirp/QE to suppress interest rates and prop up asset (stocks, homes) prices. Scam. 
 

Debt monetization enabled money printing. Resulting inflation. Scam. 
 

Fed handing out $500B to European banks with no oversight. Scam. 

All of these things serve moneyed interests above the vast majority of Americans. The decisions are made by unelected officials that are often involved in a revolving door with the financial sector. Scam. 

[jimmyjazz 45,974]

1 minute ago, Immaculate Vibes said:

Debt monetization enabled money printing. Resulting inflation.

No.  The Fed has been printing money for decades and the howls of "inflation" have been persistent.  Suddenly, inflation shows up, AFTER a massive global supply-chain disrupting pandemic and NOW it's the money printing?  Come on.

[Brisketexan 105,154]

12 minutes ago, jimmyjazz said:

No.  The Fed has been printing money for decades and the howls of "inflation" have been persistent.  Suddenly, inflation shows up, AFTER a massive global supply-chain disrupting pandemic and NOW it's the money printing?  Come on.

No, man, you don't get it -- it's ALWAYS been a scam.  Bretton Woods, gold standard, you think the eye on the pyramid is a joke, man?

 

DO THE RESEARCH, SHEEPLE!

The only real money in human history, the first currency to actually live up to the promise of what money should be, is..........

 

[Bullneck 19,168]

Krugman weighs in.

Quote

Crashing Crypto: Is This Time Different?

May 17, 2022, 1:45 p.m. ET

 

By Paul Krugman

Opinion Columnist

 

You're reading the Paul Krugman newsletter, for Times subscribers only.  A guide to U.S. politics and the economy — from the mainstream to the wonkish. Get it in your inbox.

Last week TerraUSD, a stablecoin — a system that was supposed to perform a lot like a conventional bank account but was backed only by a cryptocurrency called Luna — collapsed. Luna lost 97 percent of its value over the course of just 24 hours, apparently destroying some investors’ life savings.

The event shook the crypto world in general, but the truth is that this world was looking pretty shaky even before the Terra disaster. Bitcoin, the original cryptocurrency, peaked last November and has since declined by more than 50 percent.

Here’s one way to think about that decline. Almost everyone is concerned about the rising cost of living; the Consumer Price Index — the cost of a representative basket of goods and services — has gone up about 4 percent over the past six months. But the cost of the same basket in Bitcoin has risen around 120 percent, which means inflation at an annualized rate of about 380 percent.

And other cryptocurrencies have performed far worse. Two cities — Miami and New York — have introduced their own cryptocurrencies, with enthusiastic support from their mayors. MiamiCoin is down more than 90 percent from its peak, and NewYorkCityCoin is down more than 80 percent.

 

 

By now, we’ve all heard of them, but what exactly are cryptocurrencies? Many people — including, I fear, many people who have invested in them — probably still don’t fully understand them. Saying that they’re digital assets doesn’t really get at it. My bank account, which I mainly reach online, is also a digital asset, for all practical purposes.

What’s distinctive about cryptocurrencies is how ownership is established. I own the money in my bank account because the law says I do, and the bank enforces that legal claim by requiring, one way or another, that I prove that I am, in fact, me. Ownership of a crypto asset is established through what’s known as the blockchain, an encrypted (hence the name) digital record of all previous transfers of ownership that supposedly obviates the need for an external party, such as a bank, to validate a claim.

What’s the point of this kind of decentralized finance, and what purpose does it serve? Well, I’ll get to all that.

Though cryptocurrencies are currently way down, boosters — and as anyone who’s played in this space can tell you, there are few boosters quite as boosterish — will reassure you that this has happened before. Bitcoin, in particular, has always bounced back from previous dips, and investors who HODLed (held on for dear life to their coins, despite falling prices) have ended up with huge capital gains. But there are reasons to believe that this time may be different.

In the past, cryptocurrencies kept going up by attracting an ever-growing range of investors. Crypto was once held by a small clique that often had the feel of a cult, motivated in part by a combination of libertarian ideology and fascination with the clever use of technology. Over time, rising crypto prices drew in large numbers of additional investors and some big Wall Street money.

Editors’ Picks

All Those Celebrities Pushing Crypto Are Not So Vocal Now

Rescuing the Cuisine of Besieged Mariupol, Recipe by Family Recipe

Leave the Sweatshirt at Home. Dining Dress Codes Are Back.

 

And in the past year or so, crypto marketing has gone really mainstream, with endorsements from celebrities — including Matt Damon, Kim Kardashian and Mike Tyson — not to mention political figures like Mayor Eric Adams of New York and the (unsuccessful) Republican Senate candidate Josh Mandel, who declared his intention to make Ohio “pro-God, pro-family, pro-Bitcoin.” Given all this, it’s hard to see who else there might be to recruit into crypto investing.

One disturbing aspect of this marketing push, by the way, is that those who bought cryptocurrencies relatively recently — and have therefore lost a lot of money in the crypto crash — probably consist disproportionately of the kind of people most likely to be influenced by celebrity endorsements. That is, they are probably poorer and less sophisticated than the average investor and badly positioned to handle the losses they’ve taken over the past few months.

In any case, as we look forward, the value of cryptocurrencies will have to rest on their underlying economic uses, which are …

Well, that’s just the thing. I’ve heard many discussions in which crypto supporters have been asked exactly what economic role crypto can play that isn’t more easily and cheaply achieved through other means — debit cards, Venmo, etc. Other than illegal transactions, in which crypto may sometimes offer anonymity, I have yet to hear a coherent answer.

As it is, cryptocurrencies play almost no role in economic transactions other than speculation in crypto markets themselves. And if your answer is “give it time,” you should bear in mind that Bitcoin has been around since 2009, which makes it ancient by tech standards; Apple introduced the iPad in 2010. If crypto was going to replace conventional money as a medium of exchange — a means of payment — surely we should have seen some signs of that happening by now. Just try paying for your groceries or other everyday goods using Bitcoin. It’s nearly impossible.

And then there’s El Salvador, which tried to force the process by making Bitcoin legal tender and heavily promoting and subsidizing its use, in an attempt to make it a true medium of exchange. All indications are that the experiment has been an abject failure.

But can crypto really have become such a big deal without any clear economic rationale other than pure speculation? Can it really be just a bubble inflated by FOMO, fear of missing out? Those who question crypto’s purpose are constantly confronted with the argument that the sheer scale of the industry — at their peak, crypto assets were worth almost $3 trillion — and the amount of money true believers have made along the way proves the skeptics wrong. Can we, the public, really be that foolish and gullible?

 

 

Well, maybe the crypto skeptics are wrong. But on the question of folly and gullibility, the answer is yes, we can.

 

[Immaculate Vibes 114]

3 hours ago, Brisketexan said:

No, man, you don't get it -- it's ALWAYS been a scam.  Bretton Woods, gold standard, you think the eye on the pyramid is a joke, man?

 

DO THE RESEARCH, SHEEPLE!

The only real money in human history, the first currency to actually live up to the promise of what money should be, is..........

 

Credit to Jimmy Jazz for at least challenging one of my points, even if I disagree with his assessment. 
 

You on the other hand have no coherent input. You appear to understand Bitcoin and monetary policy/history about as well as Steve Sarkisian does halftime adjustments. Congrats on joining the Mount Rushmore of confidently ignorant posters on this thread. Make room, Bullneck and BrickHorn. 

Edited May 18, 2022 by Immaculate Vibes

[Immaculate Vibes 114]

6 minutes ago, Bullneck said:

Krugman weighs in.

 

My man. Weighing in right on cue with some Paul Krugman. 

[Brisketexan 105,154]

My man. Weighing in right on cue with some Paul Krugman. 

1 - he could have weighed in with some Jack Klugman and it would still be a more reasoned take than any crypto-bro bullshit.

2 - there is no rebuttal to Krugman’s point that Bitcoin has been around for over a decade, yet still its primary function is to be traded as an “investment,” rather than being used as legal tender for actual transactions.

You’re right, though - I am absolutely not a PhD economist. Which makes the fact that I can see right through this round of bullshit all the more pathetic for you (then again, I AM old enough to have seen multiple previous rounds of bullshit, and I’m pretty decent at pattern recognition. Also, as a hazard of my profession, I’ve seen more than a few scams…which inevitably crash. This has all the hallmarks).

Lee selling your bullshit. Just realize that a good number of us will never be stupid enough to be members of your target audience.

[F250 28,777]

7 hours ago, Tom said:

Apologies if this has been discussed here, but what happens when grandma, who forgets her Facebook password every other day and needs her kids' help getting back in, loses or forgets her private keys and wallet info?  Is her money just lost out in the void forever? 

Yes.

 

[F250 28,777]

Taleb's paper isn't much different than what Krugman is saying. The link to his paper is in his Tweet below.

 

 

[Bullneck 19,168]

40 minutes ago, Immaculate Vibes said:

My man. Weighing in right on cue with some Paul Krugman. 

What to know how I know you're not for real?

[Brisketexan 105,154]

Taleb's paper isn't much different than what Krugman is saying. The link to his paper is in his Tweet below.
 
 

That tweet is actually a damn good part of pattern recognition. The overlap of crypto bros and all of those groups is significant. And all of those groups are gullible suckers.
If you want to know if something is a scam, a pretty decent way to tell is to ask “are the gullible suckers on board?” If they are…..yeah.

[Bullneck 19,168]

1 hour ago, Immaculate Vibes said:

Credit to Jimmy Jazz for at least challenging one of my points, even if I disagree with his assessment. 

[Immaculate Vibes 114]

50 minutes ago, Brisketexan said:

1 - he could have weighed in with some Jack Klugman and it would still be a more reasoned take than any crypto-bro bullshit.

2 - there is no rebuttal to Krugman’s point that Bitcoin has been around for over a decade, yet still its primary function is to be traded as an “investment,” rather than being used as legal tender for actual transactions.

You’re right, though - I am absolutely not a PhD economist. Which makes the fact that I can see right through this round of bullshit all the more pathetic for you (then again, I AM old enough to have seen multiple previous rounds of bullshit, and I’m pretty decent at pattern recognition. Also, as a hazard of my profession, I’ve seen more than a few scams…which inevitably crash. This has all the hallmarks).

Lee selling your bullshit. Just realize that a good number of us will never be stupid enough to be members of your target audience.

No one knows the exact timeline of how adoption of a novel monetary technology should evolve, least of all Paul Krugman. He of internet/fax machine fame. This is a unique situation.
 

He’s been wrong about bitcoin for almost a decade. I would anticipate that continuing. if you’re taking cues from him on anything tech related then good luck. 
 

[Brisketexan 105,154]

No one knows the exact timeline of how adoption of a novel monetary technology should evolve, least of all Paul Krugman. He of internet/fax machine fame. This is a unique situation.
 
He’s been wrong about bitcoin for almost a decade. I would anticipate that continuing. if you’re taking cues from him on anything tech related then good luck. 
 

Tech related? I thought we were talking about money. Bitcoin is money. That’s the point. That’s what you’ve been telling us over and over. But now it’s “tech.”
Is it an iPad, or is it money?
You’re in a deep hole, but man, you keep digging.

[Immaculate Vibes 114]

5 minutes ago, Brisketexan said:

Tech related? I thought we were talking about money. Bitcoin is money. That’s the point. That’s what you’ve been telling us over and over. But now it’s “tech.”
Is it an iPad, or is it money?
You’re in a deep hole, but man, you keep digging.

Money is a technology, buddy. It has advanced over time. How do we communicate or transfer value between each other?

 

That comment on its own belies your ignorance. Sorry. 

Edited May 18, 2022 by Immaculate Vibes

[Brisketexan 105,154]

Money is a technology, buddy. It has advanced over time. How do we communicate or transfer value between each other?
 
That comment on its own belies your ignorance. Sorry. 

Holy fuck. You’re really going to try to keep playing this out? For fuck’s sake, you think you’re impressing anyone with pathetic semantics?
Cooking - applying heat to change the chemistry of foods - is absolutely a technology. But nobody says that Bobby Flay is a “tech genius.”
At this point, please continue. You’ve destroyed any credibility you had, now let’s see if you can turn the rubble to dust. What I can’t believe is that you’re dumb enough to think you’re scoring any points with this shit.

[Immaculate Vibes 114]

31 minutes ago, Brisketexan said:

Holy fuck. You’re really going to try to keep playing this out? For fuck’s sake, you think you’re impressing anyone with pathetic semantics?
Cooking - applying heat to change the chemistry of foods - is absolutely a technology. But nobody says that Bobby Flay is a “tech genius.”
At this point, please continue. You’ve destroyed any credibility you had, now let’s see if you can turn the rubble to dust. What I can’t believe is that you’re dumb enough to think you’re scoring any points with this shit.

How do you transfer value over large distances? Or over years or decades? That’s why money was developed. It’s how we developed past bartering. And it’s had multiple iterations and advancements over time. Bitcoin is just the latest. It will be adopted as such. 

 

 

[BrickHorn 18,237]

On 5/16/2022 at 9:45 PM, Immaculate Vibes said:

Bitcoin is a verifiably scarce bearer asset in this time of monetary debasement.

You misspelled “greater fool scam.”

[956 Worldwide 34,715]

The fundamental tension at the heart of BTC is that if it ever ends up becoming what IV says it will (money), then the people who are HODLing will take a bath. 
 

Money is useful only if it its value remains relatively stable (either up or down). Money is useful when it is being spent and circulated.  Simply— I don’t mind spending two bucks on a bunch of bananas.  I feel pretty confident that when things are functioning normally, I can come back six months later and get about the same bananas for my two bucks.   You want to have savings but in general it makes little sense to treat your dollars like an investment. 
 

If you’re a BTC bro, then every time you exchange even a bit of BTC for a good or service, then you’re doing a very foolish thing.  In several months, I am assured, my BTC will be worth three or even five times as many bananas as it’s worth today. So I’m better off hanging onto as much BTC as I can and using the much maligned “fiat currency” as, you know, “actual money” to buy bananas or haircuts. 

The argument eats its own tail. BTC is a great investment because it’s allegedly the future of money but the moment it becomes a good substitute for money, it stops being a good investment. And perversely, the people hoarding this shit have every incentive to make sure it never actually becomes money. 

Edited May 18, 2022 by 956 Worldwide

[Immaculate Vibes 114]

6 hours ago, 956 Worldwide said:

The fundamental tension at the heart of BTC is that if it ever ends up becoming what IV says it will (money), then the people who are HODLing will take a bath. 
 

Money is useful only if it its value remains relatively stable (either up or down). Money is useful when it is being spent and circulated.  Simply— I don’t mind spending two bucks on a bunch of bananas.  I feel pretty confident that when things are functioning normally, I can come back six months later and get about the same bananas for my two bucks.   You want to have savings but in general it makes little sense to treat your dollars like an investment. 
 

If you’re a BTC bro, then every time you exchange even a bit of BTC for a good or service, then you’re doing a very foolish thing.  In several months, I am assured, my BTC will be worth three or even five times as many bananas as it’s worth today. So I’m better off hanging onto as much BTC as I can and using the much maligned “fiat currency” as, you know, “actual money” to buy bananas or haircuts. 

The argument eats its own tail. BTC is a great investment because it’s allegedly the future of money but the moment it becomes a good substitute for money, it stops being a good investment. And perversely, the people hoarding this shit have every incentive to make sure it never actually becomes money. 

As it is adopted and held by individuals it will appreciate over time and volatility will dampen.  Eventually if/when widespread daily usage is attained then its value will be steady at the high levels it achieves. But as I said this is an unprecedented phenomenon so we’ll see if it plays out that way. 
 

 

[Pam Cummings 9,645]

12 hours ago, Brisketexan said:

That tweet is actually a damn good part of pattern recognition. The overlap of crypto bros and all of those groups is significant. And all of those groups are gullible suckers.
If you want to know if something is a scam, a pretty decent way to tell is to ask “are the gullible suckers on board?” If they are…..yeah.

I would just like to thank people like @Immaculate Vibes for being the suckers that they are. As soon as i saw the types of people who were pushing/dealing with crypto, i noped out. I'm sure you can make some extra dough by timing fluctuations correctly but that's just not worth the try.

[High Plains Drifter 11,050]

On 5/17/2022 at 7:46 PM, Bullneck said:

And other cryptocurrencies have performed far worse. Two cities — Miami and New York — have introduced their own cryptocurrencies, with enthusiastic support from their mayors. MiamiCoin is down more than 90 percent from its peak, and NewYorkCityCoin is down more than 80 percent.

 

jfc

[Bullneck 19,168]

On 5/18/2022 at 9:57 AM, Immaculate Vibes said:

As it is adopted and held by individuals it will appreciate over time and volatility will dampen.  Eventually if/when widespread daily usage is attained then its value will be steady at the high levels it achieves. But as I said this is an unprecedented phenomenon so we’ll see if it plays out that way. 
 

 

I love how you say this with such certainty, and without a shred of backup.  

 

[softlynow 1,816]

On 5/18/2022 at 8:57 AM, Immaculate Vibes said:

As it is adopted and held by individuals it will appreciate over time and volatility will dampen.  Eventually if/when widespread daily usage is attained then its value will be steady at the high levels it achieves. But as I said this is an unprecedented phenomenon so we’ll see if it plays out that way. 
 

 

It's not totally clear you understood the post to which you're replying.

Who would want to invest in an instrument that doesn't increase in value?

Who would want to use an instrument as currency that does increase in value?

[Horn Under a Bad Sign 20,408]

Just in case it hasn't been posted, crypto-mining in Texas is expected to use more electricity by the middle of next year than the entire city of Houston.

https://techxplore.com/news/2022-04-crypto-miners-electricity-texas-equal.html

[Dahobbs 17,625]

On 5/18/2022 at 8:57 AM, Immaculate Vibes said:

As it is adopted and held by individuals it will appreciate over time and volatility will dampen.  Eventually if/when widespread daily usage is attained then its value will be steady at the high levels it achieves. But as I said this is an unprecedented phenomenon so we’ll see if it plays out that way. 
 

 

I'd like to see evidence of any substantial usage as a currency. Essentially no transactions are done in bitcoin, even by its most ardent supporters. The only segment where bitcoin has seen significant adoption for actual transactions is the criminal segment. Everything else is just buy and hold, or occasionally sell for a profit. Bitcoin isn't used as a currency. And there no evidence it ever will be. 

[Dahobbs 17,625]

16 minutes ago, Horn Under a Bad Sign said:

Just in case it hasn't been posted, crypto-mining in Texas is expected to use more electricity by the middle of next year than the entire city of Houston.

https://techxplore.com/news/2022-04-crypto-miners-electricity-texas-equal.html

It totes will help our power capacity. Just you wait. Any day now...

[Immaculate Vibes 114]

Spoiler

Crypto executives are now pouring more money into US politics than many of America’s industrial stalwarts.

Political donations from the sector surged to more than $26 million during 2021 and the first three months of this year. That influx of cash is outpacing spending by internet giants, drug makers and the defense industry -- providing a fresh pool of financing for candidates heading into November’s congressional elections.

The issue of regulating virtual tokens is not nearly as divisive as gun control or abortion rights. But the upcoming election will be highly consequential for crypto: Congress may weigh in with new laws for the asset class next year, and efforts by federal agencies to study consumer protections as well as a possible Federal Reserve-backed token are coming to a head.

“The industry has been under so much scrutiny and early next year stands to be a real inflection point in Washington,” said Eric Soufer, a political consultant with Tusk Strategies who leads the firm’s crypto and fintech practice. “It’s possible you’ll see a historic investment in this election season.”

In the 15 months through March, donations from people working in digital assets reached $26.3 million, according to the Federal Election Commission data compiled by Bloomberg. That’s an enormous leap over the less than $500,000 the industry gave through the same period in the 2020 election cycle.

Crypto’s giving compares with $20 million in contributions from tech firms such as Alphabet Inc.’s Google and Amazon.com Inc., $7 million from drug makers and $18.6 million from defense contractors, according to OpenSecrets. Data compiled by the transparency group show private equity and other investment firms gave nearly $76 million over the period.

While the roster of crypto donors is expected to mushroom as the November elections draw closer, the biggest spender thus far is Sam Bankman-Fried, the billionaire co-founder of the FTX exchange. 

He contributed $16 million in April alone after being responsible for a majority of crypto’s giving through the first quarter of the year. Overall, he’s pumped in about $32 million, 75% of the industry’s total, making him the biggest individual donor other than George Soros since the start of 2021, the FEC data compiled by Bloomberg show.  

The FTX CEO has used a super political action committee known as Protect Our Future for most of his spending. While several Democrats supported by that PAC have won primary contests, its biggest outlay of $11.4 million failed to boost Oregon Democrat Carrick Flynn, a political newcomer who ran on increasing readiness for a pandemic.

Flynn’s futility last month showed that all the spending won’t necessarily be enough to sway voters, particularly in crowded primaries focused on local issues. Soufer, the Tusk Strategies consultant, says crypto donors have a long way to go in terms of developing a cohesive strategy for getting the most out of their contributions.

“I’m not sure yet that all the political dollars are being coordinated in a truly coherent and efficient way to maximize their impact, but they still have a little bit of time to figure that out,” he said. 

Read more: Crypto Goes Shopping for a Regulator It Can Push Around

In a May 27 interview, Bankman-Fried says he’s undeterred by Flynn’s loss. The 30-year-old billionaire added that while it’s unlikely to reach that level, he could spend as much as $1 billion on the 2024 presidential election. Bankman-Fried said his political agenda extends well-beyond crypto regulation, and his spending is now primarily focused on pandemic preparedness. 

“We weren’t prepared for Covid -- it cost us tens of trillions of dollars and millions of lives -- and we’re still not prepared for the next pandemic,” he said. 
 

Bankman-Fried and his trading firm Alameda Research combined to give $10.2 million to a super PAC that backed Joe Biden in the 2020 election. And the Biden Victory Fund, which raised money for his campaign and the Democratic National Committee, got a $50,000 contribution from him.

Meanwhile, donors are also seeking to boost GOP candidates. Ryan Salame, who’s also an executive at FTX, has given $5.7 million -- most of it to groups that back Republicans, the FEC data show. He’s given $4 million as the only donor to American Dream Federal Action, a super PAC that’s backing Republican congressional candidates.

The surge in spending comes as calls in Washington for tighter rules on the crypto market grow louder after a popular token melted down last month, fueling a broader selloff in the asset class. Bitcoin, the largest cryptocurrency, is down more than 50% from its all-time high in November. 

“This industry has come out of nowhere to spend a significant amount of money on politics,” Dan Auble, a senior researcher at OpenSecrets, said of crypto. 

The biggest by far throwing money around is big Biden supporter. 

[Brisketexan 105,154]

Spoiler

Crypto executives are now pouring more money into US politics than many of America’s industrial stalwarts.
Political donations from the sector surged to more than $26 million during 2021 and the first three months of this year. That influx of cash is outpacing spending by internet giants, drug makers and the defense industry -- providing a fresh pool of financing for candidates heading into November’s congressional elections.
The issue of regulating virtual tokens is not nearly as divisive as gun control or abortion rights. But the upcoming election will be highly consequential for crypto: Congress may weigh in with new laws for the asset class next year, and efforts by federal agencies to study consumer protections as well as a possible Federal Reserve-backed token are coming to a head.
“The industry has been under so much scrutiny and early next year stands to be a real inflection point in Washington,” said Eric Soufer, a political consultant with Tusk Strategies who leads the firm’s crypto and fintech practice. “It’s possible you’ll see a historic investment in this election season.”
In the 15 months through March, donations from people working in digital assets reached $26.3 million, according to the Federal Election Commission data compiled by Bloomberg. That’s an enormous leap over the less than $500,000 the industry gave through the same period in the 2020 election cycle.
Crypto’s giving compares with $20 million in contributions from tech firms such as Alphabet Inc.’s Google and Amazon.com Inc., $7 million from drug makers and $18.6 million from defense contractors, according to OpenSecrets. Data compiled by the transparency group show private equity and other investment firms gave nearly $76 million over the period.
While the roster of crypto donors is expected to mushroom as the November elections draw closer, the biggest spender thus far is Sam Bankman-Fried, the billionaire co-founder of the FTX exchange. 
He contributed $16 million in April alone after being responsible for a majority of crypto’s giving through the first quarter of the year. Overall, he’s pumped in about $32 million, 75% of the industry’s total, making him the biggest individual donor other than George Soros since the start of 2021, the FEC data compiled by Bloomberg show.  
The FTX CEO has used a super political action committee known as Protect Our Future for most of his spending. While several Democrats supported by that PAC have won primary contests, its biggest outlay of $11.4 million failed to boost Oregon Democrat Carrick Flynn, a political newcomer who ran on increasing readiness for a pandemic.
Flynn’s futility last month showed that all the spending won’t necessarily be enough to sway voters, particularly in crowded primaries focused on local issues. Soufer, the Tusk Strategies consultant, says crypto donors have a long way to go in terms of developing a cohesive strategy for getting the most out of their contributions.
“I’m not sure yet that all the political dollars are being coordinated in a truly coherent and efficient way to maximize their impact, but they still have a little bit of time to figure that out,” he said. 
Read more: Crypto Goes Shopping for a Regulator It Can Push Around
In a May 27 interview, Bankman-Fried says he’s undeterred by Flynn’s loss. The 30-year-old billionaire added that while it’s unlikely to reach that level, he could spend as much as $1 billion on the 2024 presidential election. Bankman-Fried said his political agenda extends well-beyond crypto regulation, and his spending is now primarily focused on pandemic preparedness. 
“We weren’t prepared for Covid -- it cost us tens of trillions of dollars and millions of lives -- and we’re still not prepared for the next pandemic,” he said. 
 
Bankman-Fried and his trading firm Alameda Research combined to give $10.2 million to a super PAC that backed Joe Biden in the 2020 election. And the Biden Victory Fund, which raised money for his campaign and the Democratic National Committee, got a $50,000 contribution from him.
Meanwhile, donors are also seeking to boost GOP candidates. Ryan Salame, who’s also an executive at FTX, has given $5.7 million -- most of it to groups that back Republicans, the FEC data show. He’s given $4 million as the only donor to American Dream Federal Action, a super PAC that’s backing Republican congressional candidates.
The surge in spending comes as calls in Washington for tighter rules on the crypto market grow louder after a popular token melted down last month, fueling a broader selloff in the asset class. Bitcoin, the largest cryptocurrency, is down more than 50% from its all-time high in November. 
“This industry has come out of nowhere to spend a significant amount of money on politics,” Dan Auble, a senior researcher at OpenSecrets, said of crypto. 

The biggest by far throwing money around is big Biden supporter. 

They’re all just gamblers backing different horses on their bets. Which stands mostly as evidence of what they are - pyramid scheme speculators/pump and dumpers. The ones backing the Dems aren’t the first to try (and maybe succeed) in buying a Dem pol, and they won’t be the last.
Crypto looks to be one of those schemes that gets buy-in from both sides of the political aisle, trying to look “cutting edge.” Like many other times that has happened, it will likely bite them all in the ass.

[Neonmoon 38,129]

IV bumping the crypto thread in another sad attempt to normalize/popularize crypto 

see you guys for next month’s post!

[Immaculate Vibes 114]

1 hour ago, Neonmoon said:

IV bumping the crypto thread in another sad attempt to normalize/popularize crypto 

see you guys for next month’s post!

I’m not sure what you mean exactly, but this guy is a political force. 
 

 

[PenelopeWitherspoon 19,103]

39 minutes ago, Immaculate Vibes said:

I’m not sure what you mean exactly, but this guy is a political force. 
 

 

This seems like this should be illegal, right?

[royiv 9,324]

15 minutes ago, PenelopeWitherspoon said:

This seems like this should be illegal, right?

No kidding. I don't care which team you root for, this is insane.

[Goredho 17,408]

We appreciate your concerns, but the republic is working as intended.

[Hornius Emeritus 12,470]

17 hours ago, Immaculate Vibes said:

I’m not sure what you mean exactly, but this guy is a political force. 
 

 

Dude should spend like 20 bucks at Supercuts.

Edited June 6, 2022 by Hornius Emeritus

[Fudge Nuggets 19,206]

On 5/17/2022 at 3:57 PM, Immaculate Vibes said:

On 5/17/2022 at 12:11 PM, Brisketexan said:

The dollar is down 8.3% in purchasing power YoY. Bitcoin is down 13% YoY. 
 

You do realize when you cash in those bitcoins the dollars you receive are also subject to the 8.3% decline in purchasing power, right?  It’s not like there’s some pile of magic dollars laying around for bitcoin reimbursements that holds value.

[CowboyFred 1,151]

On 6/5/2022 at 3:42 PM, Immaculate Vibes said:

I’m not sure what you mean exactly, but this guy is a political force. 
 

 

Maybe only millionaire now?

[wildcat09 29,355]

The crypto crash is objectively hilarious, but it's going to drive a lot more young men to fascism. 

[Brisketexan 105,154]

13 minutes ago, wildcat09 said:

The crypto crash is objectively hilarious, but it's going to drive a lot more young men to fascism. 

Correct.

Because instead of taking any responsibility for their folly in investing in Beanie Babies for Bros, they will instead turn all their blame and rage against "the deep state," "the establishment that doesn't want competition," blah blah blah.

We've seen this pattern plenty of times already.  We'll see it again here.

[Goredho 17,408]

I think you are missing a step where they will beg for government intervention in the form of a bailout.  If the government declines, anti-government views will be hardened because “the government is useless”.  If the government obliges, anti-government views will be hardened because the “government should not be interfering in a free market”.

[Immaculate Vibes 114]

13 minutes ago, Brisketexan said:

Correct.

Because instead of taking any responsibility for their folly in investing in Beanie Babies for Bros, they will instead turn all their blame and rage against "the deep state," "the establishment that doesn't want competition," blah blah blah.

We've seen this pattern plenty of times already.  We'll see it again here.

Actually the pattern goes as follows.  
 

People like me annoyingly thump our chests during the bull market. The bull market ends and things start trending down. Things get pretty quiet. Then there’s a big washout lower where nocoiners dunk on people like me. They say it’s over and gone forever and stop caring about it. Then some time passes and it starts pumping up again. By the time nocoiners realize it never went away, most of them think they’ve missed their chance and get big mad again. Rinse, repeat. 
 

28 minutes ago, wildcat09 said:

The crypto crash is objectively hilarious, but it's going to drive a lot more young men to fascism. 

Wrong. Bitcoin is freedom money. Never needed more than now. 
 

Just now, Goredho said:

I think you are missing a step where they will beg for government intervention in the form of a bailout.  If the government declines, anti-government views will be hardened because “the government is useless”.  If the government obliges, anti-government views will be hardened because the “government should not be interfering in a free market”.

Also wrong. Traditional markets are the ones where people beg for bailouts. 
 

The intervention will come when the Fed reverses course on monetary policy. 

[Captainant 27,680]

1 minute ago, Immaculate Vibes said:

Also wrong. Traditional markets are the ones where people beg for bailouts. 

[laughs in terra]