This is from the co-creator of Dogecoin (thread)
After years of studying it, I believe that cryptocurrency is an inherently right-wing, hyper-capitalistic technology built primarily to amplify the wealth of its proponents through a combination of tax avoidance, diminished regulatory oversight and artificially enforced scarcity. https://twitter.com/ummjackson/status/1415353984617914370?s=21
@volt4ire He originally created it as a parody, right?
I'm not particularly moved by concerns about tax avoidance, because at least in the US the government has deliberately crafted the tax system so that the wealthiest can easily avoid taxes legally, while the middle class get completely screwed. So the people who SHOULD be paying more taxes don't need cryptocurrency to avoid taxes. The people using cryptocurrency to avoid taxes are those who are most screwed by our current tax system.
@volt4ire And as far as enriching the wealthy, Wall Street already does that quite effectively without needing cryptocurrency. If your goal is to create a right-wing dystopia, I'm not sure what one could do to improve on the current situation. We were already doing a bang-up job of it before Bitcoin came along.
@freakazoid @volt4ire It's hard to deny that Bitcoin made it much worse, though: the regulators in the USA basically just conceded that Bitcoin et al could be treated as totally unregulated commodities, allowing financial institutions to use cryptocurrencies to do the sort of things that the regulators were set up to prevent.
Case in point: the tweet-based pump and dumps that Musk keeps doing would be explicitly illegal if done on a stock or commodity that he was invested in, but for Crypto? OK
@freakazoid @volt4ire That's true, but one doesn't have to "realise" an asset to account for the asset. That is, why bother converting back to dollars when you could just account for the current asset value on paper, speculate hilariously on that, and even use it as leverage or directly as a currency-in-itself.
The exchange may be regulated as such, because dollars are involved. But bitcoin itself is just left to fester.
@freakazoid @volt4ire The wider system is regulated very, very poorly, I'll grant you, and it's definitely set up to work for Billionaires and multimillionaires at the expense of everyone else.
But to return to my earlier example: the naked tweet-based pump and dumps that we see done shamelessly by Musk are illegal, and actively regulated against, when done for stocks or regular commodities.
The fact that investors are allowed to do with Cryptocurrencies what they are not allowed to do with regular stocks has, IMO, made things measurably worse when seen through the lens of market dynamics alone - it's allowed the brittleness and personality-driven fluctuations of cryptocurrencies to spill outward into other economic activities.
Case in point: the time bomb of Tether. We have unregulated stocks/commodities that're nakedly open to insider trading and pump'n'dump, tied to a microfractional-reserve 'stablecoin' scam that's carrying massive volumes of paper wealth for large real-market institutions. Oops
@seachaint @volt4ire Incidentally, I think the right thing to do might be to regulate stocks less rather than to regulate commodities and currencies more. I think part of the reason these scams work so well is that people are used to there being the equivalent of warning signs and railings everywhere, and even if they realize they're dealing with something that's less regulated, they don't have any conception of what that means in terms of risk.
@seachaint @volt4ire It's not so much that I believe in social Darwinism or whatever as that regulation is just another form of privilege. There is a huge difference between what public and private companies can pay people, unless the private company is VC-funded with the goal of going public. And you get access to the public markets by bribing your way in for the most part. You don't bribe regulators but the investment banks that the regulators will be going to work for when they retire.
@seachaint @volt4ire And if you think about it, the whole justification behind the regulation is that it's supposed to protect "regular people" who want to 'invest" in the stock market. But you and I both know that the average person buying and selling individual stocks amounts to little more than gambling. And far more so if they get into options, futures, and other derivatives. So if it's gambling anyway, why not label it as such and be done with it?
@volt4ire This could just as well be about banks. I would argue that it's the political economy that's "inherently right wing, hypercapitalistic" and not the technology. The crux here is "The cryptocurrency industry is controlled by a powerful cartel of wealthy figures", but it need not be that way. I even see a better chance changing that, than changing the powerful cartel that controls the banks.
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