Tag Archives: blockchain

Books, Crypto, Entertainment, Etherum, Movies

Ridley Scott to Produce ‘The Infinite Machine’ ETH Origin Story from Camila Russo’s Book

The future of Ethereum, DAOs, Defi and Web3 set to become mainstream with movie tracing its history

Ridley Scott’s production company, Scott Free Productions, is slated to produce a feature film based the book, which tells the story of Ethereum, ‘The Infinite Machine‘ written by cryptocurrency crusader and journalist Camila Russo, and has Shyam Madiraju attached as director. Tom Moran, Vera Meyer, and Alejandro Miranda are also onboard, according to Deadline.

With Ridley Stott’s credits running the gamut from ‘Blade Runner‘, to ‘The Last Duel’, to Alien, to Gladiator, and too many more to count, plus production credits for Scott Free that are no less impressive, the upcoming films appears set to be big.

Ethereum co-founder Vitalik Buterin will play prominently in the story, showing the early and incredible initial launch, inspired by the self-taught 19 year-old, into what is now the world’s second largest cryptocurrency (Ether) and, according to Ethereum.org is a technology that’s home to digital money, global payments, and applications. The current ‘market cap’ for Ethereum is nearly $400 billion.

The story up to the present day is fascinating enough, with the meteoric rise of Ethereum from the founding in 2015 to the announcement of this project. Particularly noteworthy is the connection between the Ethereum blockchain technology and the invention of NFTs (Non-fungible tokens), DeFi (decentralized finance), D.A.O.s (Decentralized autonomous organizations) and more.

Camila Russo, author of “The Infinite Machine”, also founded TheDefiant( thedefiant.io ) which “curates, digests, and analyzes all the major developments in decentralized finance, so that you can stay informed and smart about the most cutting-edge and fastest-changing corner of crypto and finance” according to the site itself.

The film project has already started to make waves and accomplish meaningful buzz in a deep layered, totally coherent approach to its creation. Namely, the fact that part of the fundraising for the film is taking place via NFT collections. This bold move has been incredibly well timed and successful, with the first @ETHMovie collection selling out completely within 28 hours and raising $670,000 in the process.

This funding, along with subsequent NFT collections offered are being managed via The Infinite Machine DAO community treasury, along with traditional film financing techniques. The DAO is, itself, the executive producer of the movie.

According to the official site for the film, the NFT collection sales will be equally distributed amongst the 36 intervening artist which will receive 22.5% of the budget. 10% will be sent to a community treasury pool to fund the DAO, and the 67.5% will be used for the movie.

‘It’s incredibly exciting to have Ridley Scott and the crew at Scott Free produce the movie of The Infinite Machine alongside us. I can’t imagine a better team to turn the riveting story about the people behind the most revolutionary technology since the internet into a feature film that will capture the hearts of our generation.‘

Camila Russo as per ‘DeaDline’

This groundbreaking funding mechanism, in this case for a movie that is intended to “become a blockbuster movie for the mainstream”, is part and parcel of the radical yet optimistic and hopeful changes that DAOs, NFTs, DeFi all were created to achieve, within the greater context of Web3 and the Ethereum blockchain itself. In other words, making this film is itself proof that the subject matter is alive, kicking and becoming more real (and dangerous, to some) in real time.

Traditional funding and monetary distribution channels, from the creative genesis of an idea (in this case the book) to a fully formed commercially released product and its proceeds, are by comparison, woefully inadequate and generally corrupt and unfair, according to many artists and creators super-pumped for the transition to these new methods made possible by Ethereum, blockchain, and soon, Web3.

So from the story, in both book and movie, to the NFT collections, the the DAO created to executive produce and partially fund the film, there is a thread of real-life proof-of-concept running throughout.

That proof is that, far from being a far flung, possible flash-in-the-pan, the entire saga, beginning with 19-year-old Vitalik Buterin’s idea to expand the potential of block chain, is destined to come to spectacular fruition, and sooner than you might believe.

Culminating the relatively short history of the last 7 years, all the way to the present day explosion of work, massive capital investments and development of Ethereum, along with its various applications and use-cases, we could be inexorably headed toward a moment in the near-future when the film will crash head-on into the realization of the very dream scenario it depicts. Oh boy howdy.

Below, the breakdown of the The Infinite Machine DAO funding plan:

Before the Movie Budget is Covered

Distribution of primary and secondary sales:

  • 22.5% in an equal basis amongst the 36 intervening artists
  • 10.0% to a community treasury pool used to seed The Infinite Machine DAO
  • 67.5% to cover the movie budget up to $16M. That number may be reduced depending on the amount of funds raised via traditional means.

After the Movie budget is covered

Distribution of secondary trading fees and any other revenues from all collections:

  • 22.5% will be received by the artists in this collection 
  • 25.0% will be received by the NFT Collection core team and contributors 
  • 52.5% will be used to fund a community pool to seed The Infinite Machine DAO

Camila Russo spent eight years at Bloomberg covering the Argentine market (bonds, stocks, FX) for 4+ years based in Buenos Aires; she wrote about European stocks with a focus on Southern Europe in Madrid; analyzed macro emerging markets moves for the Markets Live blog in New York; and was one of the most prolific and dedicated cryptocurrency reporters.

Related:

Check out Lynxotic on YouTube

Find books on Music, Movies & Entertainment and many other topics at Bookshop.org

Lynxotic may receive a small commission based on any purchases made by following links from this page

Books, Crypto, Entertainment, Finance, Observation

The Best Books on Cryptocurrency

Above:Photo Credit / Krzysztof Kowalik on Unsplash

So much is going on in the area of Crypto-currencies, Blockchain, Alt Coins, and Decentralized Finance (DeFi) that it can make your head spin. And that is not to even mention Crypto Mining, Farming, Baking and Trading, all of which have had skyrocketing activity recently.

How much interest there is runs the gamut from the curious onlooker to the serious professional. And then there are predictions regarding the future of the world financial system, the political and legal ramifications of the rise of crypto and all the opinions going every which way, and more.

Based on all of the above it only makes sense to put together a list of fundamental ground floor guidebooks to help anyone who wants and needs to really understand what all the fuss is about. Bitcoin and the whole area of blockchain technology has come so far already, and is so established and entrenched that it is unlikely to disappear completely anytime soon, no matter which way the political winds may blow.

So if you are a beginner an intermediate or even advanced learner that wants to know more, these are the best books to really dig into the phenomena and explosion of information and viewpoints. To make it easier they are featured front and center, below, along with descriptions, provided courtesy of the Bookshop (and the various publishers), and with some links for a variety of options of where to purchase.

Mastering Blockchain – Third Edition: A deep dive into distributed ledgers, consensus protocols, smart contracts, DApps, cryptocurrencies

Buy at Bookshop

Blockchain technology is the backbone of cryptocurrencies, and it has applications in finance, government, media, and many other industries. With a legacy of providing technologists with executable insights, the third edition of Mastering Blockchain is thoroughly revised and updated with the latest blockchain research, including four new chapters on consensus algorithms, Serenity (Ethereum 2.0), tokenization, and enterprise blockchains.

Apart from covering the basics, including blockchain’s technical underpinnings, cryptography, and consensus protocols, this book provides you with expert knowledge on decentralization, decentralized application development on Ethereum, Bitcoin, alternative coins, smart contracts, alternative blockchains, and Hyperledger.

Furthermore, you will explore how to implement blockchain solutions beyond cryptocurrencies, such as the Internet of Things with blockchain, blockchain scalability, enterprise blockchains, and tokenization using blockchain, and the future scope of this fascinating and disruptive technology.

By the end of this book, you will have gained a thorough understanding of the various facets of blockchain technology and be comfortable applying them to diverse real-world scenarios.

Bookshop
Walmart
Amazon

Key Features

  • Updated with four new chapters on consensus algorithms, Ethereum 2.0, tokenization, and enterprise blockchains
  • Dive deep into foundational pillars of blockchain technology such as decentralization, cryptography, and consensus protocols
  • Get to grips with Solidity, Web3, cryptocurrencies, smart contract development and solve scalability, security, and privacy issues
  • Discover the architecture of different distributed ledger platforms including Ethereum, Bitcoin, Hyperledger Fabric, Hyperledger Sawtooth, Corda, and Quorum

Cryptocurrency, Bitcoin, Blockchain Technology& Altcoins For Beginners: Explore The Decentralized World, Investing in Crypto Blueprint, Mining Basics+

Buy at Bookshop

Do you want to understand what Bitcoin & Cryptocurrency actually is? Do you want to understand how it could change the world & finance industry FOREVER? Do you want to discover how you can get started investing in Crypto TODAY?

By now we’ve all heard of it, yet few of us understand it, and without understanding it how could you even dream of investing in it?

You hear all the tech ‘bros’ talking about it, you hear the media slandering it, you can see the bankers are scared by it’s potential, but you still don’t quite get the fuss.

Don’t worry, we’ve all been there.

But, luckily, this book has been written for people just like you.

The purpose of it is to demystify the world of Bitcoin, Cryptocurrency, Decentralization & The Blockchain.

And, if those 4 words currently sound like a foreign language to you, you’re not alone. But, after this book, you’ll be the one explaining about the ‘Crypto Craze’ to everyone you see!

Inside, we will go over the origins & history of Bitcoin, it’s potential to change the world, as well as how it could all go wrong.

And, of course, we will go over how you can invest in potentially the greatest wealth transfer the world has ever seen.

Here’s a tiny Example of what’s inside..

  • Exactly What Bitcoin Actually Is And How It Is Drastically Disrupting The Global Economy 
  • Everything You Need To Know About The ‘Bitcoin Halving’ Cycles & How To Maximize Your Gains From Them
  • What Is A ‘Blockchain’ And How It Could Quite Literally Revolutionize EVERY Aspect Of Your Life In The Coming Decades
  • What Are ‘Altcoins’ And How They Are Different To Bitcoin & What Their Purpose In All Of This Is…
  • Why We Are Still In The VERY Early Days Of The Crypto ‘Boom’

And SO Much More!

So, If You Want To FINALLY Understand The World Of Bitcoin & Cryptocurrency So You Can Actually Understand What All The Fuss Is About And Whether You Want To Get Involved, Then Scroll Up And Click

Bookshop
Walmart
Amazon

Infinite Powers: How Calculus Reveals the Secrets of the Universe

buy at Bookshop

From preeminent math personality and author of The Joy of x, a brilliant and endlessly appealing explanation of calculus–how it works and why it makes our lives immeasurably better.

Without calculus, we wouldn’t have cell phones, TV, GPS, or ultrasound. We wouldn’t have unraveled DNA or discovered Neptune or figured out how to put 5,000 songs in your pocket.

Though many of us were scared away from this essential, engrossing subject in high school and college, Steven Strogatz’s brilliantly creative, down-to-earth history shows that calculus is not about complexity; it’s about simplicity. It harnesses an unreal number–infinity–to tackle real-world problems, breaking them down into easier ones and then reassembling the answers into solutions that feel miraculous.

Google
Bookshop
Biblio
eBay
Walmart
Amazon

Infinite Powers recounts how calculus tantalized and thrilled its inventors, starting with its first glimmers in ancient Greece and bringing us right up to the discovery of gravitational waves (a phenomenon predicted by calculus). Strogatz reveals how this form of math rose to the challenges of each age: how to determine the area of a circle with only sand and a stick; how to explain why Mars goes “backwards” sometimes; how to make electricity with magnets; how to ensure your rocket doesn’t miss the moon; how to turn the tide in the fight against AIDS.

As Strogatz proves, calculus is truly the language of the universe. By unveiling the principles of that language, Infinite Powers makes us marvel at the world anew.

The Bitcoin Standard: The Decentralized Alternative to Central Banking

Buy at Bookshop

When a pseudonymous programmer introduced “a new electronic cash system that’s fully peer-to-peer, with no trusted third party” to a small online mailing list in 2008, very few paid attention. Ten years later, and against all odds, this upstart autonomous decentralized software offers an unstoppable and globally-accessible hard money alternative to modern central banks. The Bitcoin Standard analyzes the historical context to the rise of Bitcoin, the economic properties that have allowed it to grow quickly, and its likely economic, political, and social implications.

While Bitcoin is a new invention of the digital age, the problem it purports to solve is as old as human society itself: transferring value across time and space. Ammous takes the reader on an engaging journey through the history of technologies performing the functions of money, from primitive systems of trading limestones and seashells, to metals, coins, the gold standard, and modern government debt. Exploring what gave these technologies their monetary role, and how most lost it, provides the reader with a good idea of what makes for sound money, and sets the stage for an economic discussion of its consequences for individual and societal future-orientation, capital accumulation, trade, peace, culture, and art. Compellingly, Ammous shows that it is no coincidence that the loftiest achievements of humanity have come in societies enjoying the benefits of sound monetary regimes, nor is it coincidental that monetary collapse has usually accompanied civilizational collapse.

With this background in place, the book moves on to explain the operation of Bitcoin in a functional and intuitive way. Bitcoin is a decentralized, distributed piece of software that converts electricity and processing power into indisputably accurate records, thus allowing its users to utilize the Internet to perform the traditional functions of money without having to rely on, or trust, any authorities or infrastructure in the physical world. Bitcoin is thus best understood as the first successfully implemented form of digital cash and digital hard money. With an automated and perfectly predictable monetary policy, and the ability to perform final settlement of large sums across the world in a matter of minutes, Bitcoin’s real competitive edge might just be as a store of value and network for final settlement of large payments–a digital form of gold with a built-in settlement infrastructure.

Ammous’ firm grasp of the technological possibilities as well as the historical realities of monetary evolution provides for a fascinating exploration of the ramifications of voluntary free market money. As it challenges the most sacred of government monopolies, Bitcoin shifts the pendulum of sovereignty away from governments in favor of individuals, offering us the tantalizing possibility of a world where money is fully extricated from politics and unrestrained by borders.

Bookshop
Walmart
Amazon

Most Recent Articles:

Find books on Music, Movies & Entertainment and many other topics at our sister site: Cherrybooks on Bookshop.org

Enjoy Lynxotic at Apple News on your iPhone, iPad or Mac.

Lynxotic may receive a small commission based on any purchases made by following links from this page

Crypto, Etherum, News, Observation, Politics

‘Ethereum is Neutral, I Am Not’ Vitalik Buterin Calls Out Vladimir Putin: Glory to Ukraine

Video

Above: Photo collage / Lynxotic / Pexels

The Russian-Canadian citizen and co-founder of the Ethereum blockchain, Vitalik Buterin took to this social media minutes after Putin’s announced a “special military operation” and effectively go to war with Ukraine. Buterin condemned the Russian President on his Twitter, see the below translated post.

Translation of the post from Russian: Very upset by Putin’s decision to abandon the possibility of a peaceful solution to the dispute with Ukraine and go to war instead. This is a crime against the Ukrainian and Russian people. I want to wish everyone security, although I know that there will be no security. Glory to Ukraine.

Vitalik also included that although his company remains neutral politically, however as a human being, Vitalik has taken a personal stance on the matter. This is another example of Russian born international citizens speaking out loud and clear against Putin and his attack. (Buterin was born in Kolomna, a city near Moscow, in 1994. When he was just six years old, he moved with his family to Canada)

Related Articles:

Check out Lynxotic on YouTube

Find books on Music, Movies & Entertainment and many other topics at our sister site: Cherrybooks on Bookshop.org

Lynxotic may receive a small commission based on any purchases made by following links from this page

News, Tech, web3

Curious Kids: what are NFTs – and why are they so expensive?

What is the purpose of making NFTs and what makes some of them so costly? – Tanvi, aged 16, Delhi, India

An NFT is a technology that proves who the owner of a digital object is. This digital object could be a song, a picture, a video, a tweet – or even a piece of digital land in an online game or virtual world. Recently, pieces of digital land in a forthcoming virtual world called Otherside sold for nearly US$6,000 (£4,791) each. What’s more, people were so keen to buy them that they also paid thousands of dollars in transaction fees.

NFT stands for non-fungible token. If something is non-fungible, this means that it cannot be replaced or exchanged for something of identical value. An example of something fungible is a current coin, such as a one pound coin, because this can be exchanged for another pound coin. It doesn’t matter which of the coins you have – you still have £1.

Something like a painting, though, is non-fungible. That particular painting only exists once. If you bought a painting, you could take that painting and hang it up in your bedroom. It would be yours – no one else would own that exact painting.

Owning something is more tricky for digital objects, because they can be copied. For instance, if you find a picture online that you like, you can right-click it, save it in your computer, and use it as a background if you want. This is where NFTs come in.

If you bought an NFT of a digital painting from the person who made it, a record of your purchase is kept in the blockchain. The blockchain is a giant database maintained by many people in their computers, and it is almost impossible to alter. Once the blockchain keeps a record of a transaction, it’s there forever. Everyone can see that you bought the NFT – and it proves that you are the only owner of the digital painting.

High values

Some digital objects have been bought for large sums of money. For instance, in 2021, the first tweet ever sent was sold for almost US$3 million. But why would someone pay so much money for an NFT?

First of all, most NFTs actually have a low price. We just only get to hear about them whenever there has been a record sale. It is the same with physical art. We hear about it when someone paid millions for a painting by a famous artist like Picasso, and never about all the paintings sold for much less.

The Best Books on Cryptocurrency

Like physical things, the value of digital art or other digital objects depends on how much someone is willing to pay for it – and that can come down to a lot of factors.

The person buying it might think it is very beautiful or important, and so is happy to pay a lot of money for it. The person who bought the first tweet, businessman Sina Estavi, wrote about it on Twitter, saying, “This is not just a tweet! I think years later people will realise the true value of this tweet, like the Mona Lisa painting”.

The Mona Lisa, a painting by the Renaissance artist Leonardo da Vinci, is one of the most famous pieces of art in the world. It hangs in the Louvre gallery in Paris, and millions of people go to see it each year.

As well as the fact that the first tweet is unique and historical, buying it is also a matter of status. Only one person in the world can say that they own the first tweet ever sent.

In a bubble

Another reason NFTs might be so expensive is because of something economists call a bubble. We say that there is a bubble in a market when investors buy things with the main prospect of selling them shortly afterwards at a higher price. This pushes the price up.

Bubbles tend to occur whenever new technology appears. Plenty of investors come with their money after hearing about the astronomical price of a new technology, or about celebrities buying them. They buy them without fully understanding them, just attracted by the money they might be able to make by selling them on. Some people think this is what is happening with NFTs.

This is not to say that NFTs have no value: it is to say that some of the people buying them are doing so solely to obtain a profit, not because they are interested in owning an image.

Another reason NFTs might be so expensive is because of the potential they have to link with the metaverse. The metaverse is a virtual universe in which people would be represented by avatars and own digital space, like the digital land sold in the Otherside virtual world.

In the future, NFTs could be displayed in this digital space, in the same way we might hang a painting up in a physical house. It will probably also be possible to convert some of them into unique avatars that the owner can use to interact in that world. Since Otherside is owned by the same company that created a famous collection called the Bored Ape Yacht Club, maybe there will be a way in future for avatar versions of these apes and other NFTs to move around in the Otherwise metaverse.

Francesc Rodriguez-Tous, Lecturer in Banking, City, University of London

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Related Articles:

Check out Lynxotic on YouTube

Find books on Music, Movies & Entertainment and many other topics at Bookshop.org

Lynxotic may receive a small commission based on any purchases made by following links from this page

Apps, Business, Crypto, Tech

New Block Cash App Feature called ‘Paid in Bitcoin’ announced at Miami Bitcoin 2022

During the 2022 Bitcoin conference in Miami the mobile payment service Cash App (developed by Block, Inc.) announced they would allow its customers to receive their paycheck earnings in bitcoin.  The feature is called “Paid in Bitcoin”.

‘Paid in Bitcoin’ would allow customers with Cash Cards to customize an amount, a percentage (1% to 100%) of their direct deposits which would then automatically be invested into the cryptocurrency, effective starting April 7. Cash App integrated with Lightning Network, the decentralized blockchain payment portal in January with plans to further expand to make it even easier for customers to make instant bitcoin transfer via QR codes.

Jack Dorsey, founder of Block (formerly named Square) and a Bitcoin Maximalist spoke at the 2021 conference and said he was committed to making the crypto “the native currency for the internet”. 

In addition to the Cash App feature that will convert your paycheck to bitcoin, the company has more features they plan to roll out in the following weeks including ‘Round Ups’.  Round Ups would enable customers to automatically invest in either bitcoin, stocks or exchange traded funds with the change (rounded to the nearest dollar) from a debit transaction. 

These new roll outs also come on the heels of a major data breach, where more than 8 million Cash App customers may have had their personal information compromised, possibly as a result of a former employee that downloaded internal reports without permission.

Related Articles:

Check out Lynxotic on YouTube

Find books on Music, Movies & Entertainment and many other topics at Bookshop.org

Lynxotic may receive a small commission based on any purchases made by following links from this page

web3

The Real Meaning of Web3 is not yet understood

Video

Is there a cookie (pie) big enough for us all?

Burning down a straw man before it’s built is a charade and a sham that predictably looks for dreams to kill, just take a peek at various articles predicting the end of web3 before it starts.

Recently there’s been a series of dust-ups and take-down attempts gunning for web3, crypto and anything decentralized or connected to buzz words like, DAOs, Defi, etc.

As logically sound as these diatribes may appear, in every case there’s a fatal flaw that’s oddly never mentioned: that at its essence web3 is a desire, an aspiration and, above all, a proposed remedy to what’s wrong with all that is, internet-wise in the present day.

Maybe it’s because the current wave of developers and venture capitalists that are at the forefront of, supposedly, building a new web, are basing the entire enterprise on a build-it-and-they-will-come mentality.

But will they come? In the end it is the crowds that make the concert. Even something as terrible and flawed as Facebook couldn’t be stopped because the crowds, both fake and, later, real-ish, did come.

Regardless of the theoretical merits of an idea or movement, if the masses do not cooperate in creating critical mass for the idea, there will be no coming out party, ever.

This is the true hope that lies beneath. The dream that dare not speak its name is not based on logic, or realistic viability, it is based on a desire that can’t be stopped, a need that does not just die out because of flawed models of centralized, decentralized or any other wannabe structure of interaction.

Web2 is dying before our eyes. Something will replace it. The rumblings from beneath in a Chinese music app named after the sound a clock makes and even from this very medium are that peer to peer power is what will drive web3 into whatever it will become.

Decentralized? The fight over defining web3 is lost in space

Peer to peer power does not rise from the barrel of a gun or even from the blockchain. It comes from the rejection of hierarchical structures that strangle creativity, and more importantly, that have no place for broadly distributed communication and prosperity to flourish.

The zero-sum mindset that Elon Musk calls wrong and that leads to “morally questionable” acts is not built to last and the top-down economics of 1 Zuckerberg per each billion users is dead and dying fast.

Can there be a Robin hood Parable 3.0: steal from nobody and give to everybody?

The infinite pie theory is the only one that fits and, according to Musk, it’s about the mindset, and adopting it all the way can take you all the way to the promised land.

The TikTok army of souls knows this and will only respond to a sustainable vision of renumeration that is, if not decentralized, at the very least widely distributed, peer-to-peer and devoid of outdated vertical top-heavy crap systems and platforms that do not work for the individual at a broad based level.

The Sun is always shining, even at night

If a “small section of southeastern Utah” can power the energy needs of the entire USA via solar, at a minimal cost compared to setting fossilized forests ablaze, then why can’t the wealth benefits of that energy be distributed across the population in a more equitable way than Malthus and the zero-sum mafia would have you believe is inevitable?

The answer to that question, beyond the benefits of asking it, is beyond the scope here, but in the case of web3 coming about it is not possible to say that it will rise as nothing more than web2 in sheep’s clothing, as Professor Scott would have you believe.

Because it will take a revolution to change and tear down the mistakes of web2 (and some other outdated baggage along the way) and that is already building in the need and desire of the population that “benefits”, or not, from the current system.

The technology that is abandoned will be the tech that is not able to exist in a world where building pyramids of crap for the Pharaohs of Facebook will just not cut it anymore. And, just as web3 already exists, not in structures built to corral and kill its spirit, but in the spirit and the need for a change and better way to make use of the network.

Related Articles:

Check out Lynxotic on YouTube

Enjoy Lynxotic at Google News and Apple News on your iPhone, iPad or Mac.

Find books on Music, Movies & Entertainment and many other topics at Bookshop.org

Lynxotic may receive a small commission based on any purchases made by following links from this page

Economics, Finance, News, Politics

Why the Fed can’t stop prices from going up anytime soon – but may have more luck over the long term

Above: Photo Adobe Stock

The Federal Reserve has begun its most challenging inflation-fighting campaign in four decades. And a lot is at stake for consumers, companies and the U.S. economy.

On March 16, 2022, the Fed raised its target interest rate by a quarter point – to a range of 0.25% to 0.5% – the first of many increases the U.S. central bank is expected to make over the coming months. The aim is to tamp down inflation that has been running at a year-over-year pace of 7.9%, the fastest since February 1982.

The challenge for the Fed is to do this without sending the economy into recession. Some economists and observers are already raising the specter of stagflation, which means high inflation coupled with a stagnating economy.

As an expert on financial markets, I believe there’s good news and bad when it comes to the Fed’s upcoming battle against inflation. Let’s start with the bad.

Inflation is worse than you think

Inflation began accelerating in fall 2021 when a stimulus-fueled demand for goods met a COVID-19-induced drop in supply.

In all, Congress spent US$4.6 trillion trying to counter the economic effects of COVID-19 and the lockdowns. While that may have been necessary to support struggling businesses and people, it unleashed an unprecedented bump in the U.S. money supply.

At the same time, supply chains have been in disarray since early in the pandemic. Lockdowns and layoffs led to closures of factories, warehouses and shipping ports, and shortages of key components like microchips have made it harder to finish a wide range of goods, from cars to fridges. These factors have contributed to a worldwide shortage of goods and services.

Any economist will tell you that when demand exceeds supply, prices will rise too. And to make matters worse, businesses around the world have been struggling to hire more workers, which has further exacerbated supply chain problems. The labor shortage also worsens inflation because workers are able to demand higher wages, which is typically paid for with higher prices on the goods they make and the services they provide.

This clearly caught the Fed off guard, which as recently as November 2021 was calling the rise in inflation “transitory.”

And now Russia’s war in Ukraine is compounding the problems. This is mostly because of the conflict’s impact on the supply of gas and oil, but also because of the sanctions placed on Russia’s economy and the ancillary effects that will ripple throughout the global economy.

The latest inflation data, released on March 10, 2022, is for the month of February and therefore doesn’t account for the impact of Russia’s invasion of Ukraine, which sent U.S. gas prices soaring. The prices of other commodities, such as wheat, also spiked. Russia and Ukraine produce a quarter of the world’s wheat supply.

Inflation won’t be slowing anytime soon

And so the Fed has little choice but to raise interest rates – one of its few tools available to curb inflation.

But now it’s in a very tough situation. After arguably coming late to the inflation-fighting party, the Fed is now tasked with a job that seems to get harder by the day. That’s because the main drivers of today’s inflation – the war in Ukraine, the global shortage of goods and workers – are outside of its control.

So even dramatic rate hikes over the coming months, perhaps increasing rates from about zero now to 1%, will be unlikely to make an appreciable impact on inflation. This will remain true at least until supply chains begin to return to normal, which is still a ways off.

Cars and condos

There are a few areas of the U.S. economy where the Fed could have more of an impact on inflation – eventually.

For example, demand for goods that are typically purchased with a loan, such as a house or car, is more closely tied to interest rates. The Fed’s policy of ultra-low interest rates is one key factor that has driven inflation in those sectors in recent months. As such, an increase in borrowing costs through higher interest rates should prompt a drop in demand, thus reducing inflation.

But changing consumer behavior can take time, and it’ll require more than a quarter-point increase in rates at the Fed. So consumers should expect prices to continue to climb at an above-normal pace for some time.

Higher interest rates also tend to reduce stock prices, as other investments like bonds may become more attractive to investors. This in turn may lead people invested in stock markets to reduce their spending because they feel less wealthy, which may help reduce overall demand and inflation. The effect is minimal, however, and would take time before you see the impact in prices.

The good news

That is the bad news. The good news is that the U.S. economy has been roaring at the fastest pace in decades, and unemployment is just about down to its pre-pandemic level, which was the lowest since the 1960s.

That’s why I think it’s unlikely the U.S. will experience stagflation – as it did in the 1970s and early 1980s. A very aggressive increase in interest rates could possibly induce a recession, and lead to stagflation, but by sapping economic activity it could also bring down inflation. At the moment, a recession seems unlikely.

In my view, what the Fed is beginning to do now is less taking a big bite out of inflation and more about signaling its intent to begin the inflation battle for real. So don’t expect overall prices to come down for quite a while.

Jeffery S. Bredthauer, Associate Professor Of Finance, Banking and Real Estate,, University of Nebraska Omaha

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Related Articles:

Check out Lynxotic on YouTube

Enjoy Lynxotic at Google News and Apple News on your iPhone, iPad or Mac.

Find books on Music, Movies & Entertainment and many other topics at Bookshop.org

Lynxotic may receive a small commission based on any purchases made by following links from this page

Crypto, Economics, Finance, Observation

Elon Musk and Jack Dorsey vs. Warren Buffett and the Status Quo

Video

Above: Photo Collage Lynxotic – various

Bitcoin and Crypto’s reached a major turning point: why is cryptocurrency worth anything?

In a recent interview clip Jack Dorsey quietly states his opinion on the difference between people who “get” blockchain and crypto, and those that will forever be married to the past:

watch:

This is the simply stated portion that says it all:

“People who have questions in the world, people who have curiosity (and are) recognizing that the current systems, wether they be corporate financial systems or the government financial systems just aren’t working for them…”

Although the context of his statement is regarding bitcoin as the native currency for the internet, and in particular how people are responding to the fact that financial systems “just aren’t working for them” it is, nevertheless, a perfect statement of how the world is changing.

It has already changed into two distinct groups: those that are clinging to the status quo, since it has worked very well for them, and those that want to find a new and better way, because, in most cases, the current system did not work for them.

It’s important to realize that this statement is not coming from a disgruntled outsider, but from the hugely successful founder of Square, now called Block.

The fact that a large group of highly successful business leaders, such as Jack Dorsey and Elon Musk, although benefiting massively from the current financial systems, are at the same time embracing a new way of thought and action for the future, is at the crux of the issues addressed in this post.

Buffet vs Musk & Dorsey and the zero sum mindset of Malthusian Capitalism

There is a war waging between those that are open to, and welcoming of, bitcoin, crypto, blockchain, DeFi and other new financial innovations and those that reject all of it and would like nothing more than to see it stopped, by any means necessary.

The derision, insults and disdain lobbed at bitcoin, crypto and anyone that believes in them, by the “old guard” epitomized by Warren Buffet and Charlie Munger are now well known and documented:

A few quotes:

“Probably rat poison squared.” — Warren Buffett in Fox Business interview at 2018 meeting

“I think I should say modestly that the whole damn development is disgusting and contrary to the interests of civilization” – Charlie Munger vice chairman at Berkshire Hathaway

“I certainly didn’t invest in crypto. I’m proud of the fact I’ve avoided it. It’s like a venereal disease or something. I just regard it as beneath contempt.” – Charlie Munger vice chairman at Berkshire Hathaway

Interestingly, if you look deeper at the interviews and quotes, you’d see that, in spite of the headline grabbing hyperbole, it’s the price speculation that is at the heart of the criticism.

The comments that crypto and bitcoin “don’t produce anything” are ridiculous on their face, as if the fiat dollar “produces” products, services or anything else.

Oh, wait, the dollar does “produce” inflation (loss in value), and has done so very dependably over the last 100+ years.

Take a stat so well known that it is almost a cliché, any way you put it: a 2013 U.S. dollar (the year the federal reserve was created, not coincidentally) would be worth more than 16x what a dollar is worth today. One has to ask where that value is now?

Bitcoin, however, has over time only gained value. A lot. If bitcoin is rat poison, maybe the fiat system and the federal reverse are the rat?

100 year old billionaires are, aparently, not inclined to speak from enlightened self-interest. Or, to be kind, perhaps they are blinded by the success they enjoyed in a system that favors anyone at the top of the pyramid, one built on value theft?

One very big caveat, however, is clearly that the “everything bubble” is bursting, price speculation always ends in price crashes, and the massive gains in the value of various cryptocurrencies are a symptom of a larger systemic emergency, rather than a quality inherent to crypto itself. There’s that.

The gap between this kind of thinking vs. that of the forward looking cryptocurrency proponents, and what they consider to be positive innovations, is vast. In a time where divisive thought is nearly ubiquitous this is not news.

However, the fact that the legions of those that “get it” are as large as they are, and that they are constantly growing, has clearly taken the debate past the point of no return.

To get the full view of this divide it’s important to look also at just how the nearly 100 year old duo of Buffet & Munger got to be the “legends” that they are.

All the best known names they are associated with, from the initial Berkshire Hathaway purchase in 1962 to more recent investments in companies such as CocaCola, GEICO Insurance, RJ Reynolds Tobacco, Sees Candy, Clayton Homes and so on, paint a clear picture of extreme hierarchal and exploitative capitalism that is solely based on making themselves and shareholders rich, and doing it on the backs of consumers.

In an example of the thinking of those that do not worship the duo, in The Nation, David Dayen wrote: “America isn’t supposed to allow moats, much less reward them. Our economic system, we claim, is founded on free and fair competition. We have laws over a century old designed to break up concentrated industries, encouraging innovation and risk-taking. In other words, Buffett’s investment strategy should not legally be available, to him or anyone else.”

Exactly this kind of double standard, corrupt to the core, is built on systemic greed founded on a Malthusian “zero-sum mindset”. This is what has led millions to conclude that the system just isn’t working for them.

Being championed ad nausea for this lifetime of “achievement” is part and parcel of the status quo that many, from many in the 99% to the “nouveau 1%”, such as Elon Musk, Jack Dorsey, Vitalik Buterin and many others, are actively seeking alternatives to.

That distinction, being rich and powerful and yet not satisfied with the legacy of corruption and greed, is at the heart of the new wave of thought that has made bitcoin, crypto and DeFi a force to be reckoned with.

Moreover, seeing the state of the world that centuries of this kind of thinking has engendered, it’s natural for the young and more enlightened to want to search for other ways for things to work, ways that perhaps champion something other than monopolistic greed and exploitation.

In a recent Interview Elon Musk addressed precisely this issue – how many in the current system are focused on prospering at the expense of others and maintaining a zero-sum mindset. In the clip he outlines how important it is to understand the failure of that approach.

watch:

The idea that crypto will disappear is wishful thinking by those that cling to the systems of the past

A clip of Harrison Ford speaking at the Global Climate Action Summit was banned on some platforms as incendiary. Why? Because he passionately accuses those that are financially linked to fossil fuels of working to spread disinformation and misinformation, in order to perpetuate their massive incomes, even while the planet is on the brink of climate disaster.

Blocking this opinion, from a rich and famous film star, no less, is typical in the way that the established system works to suppress the idea that you should do anything about the fact that “it’s just not working” for you.

This is the same divide, mentioned above, that is nearly all pervasive today, but will never stop innovation in thinking about financial systems. It will not stop DeFi or DAOs or crypto or bitcoin.

It will not stop sustainable energy from becoming an ever bigger part of the world’s energy infrastructure. The point of going back has long since passed.

How money works according to Musk

Jack Dorsey has an understated and somehow “quiet” way of expressing revolutionary ideas. Elon Musk, on the other hand, is well known for controversial and flamboyant statements, and especially tweets.

But to get a taste of just how radical his thinking really is, particularly to those that disagree, you have to dig deeper into lengthy interviews, such as those with Lex Fridman, where he reveals his thinking more specifically on money, crypto and the governments role in the system of money.

watch:

Coming from the wealthiest person on earth, some may find it odd, yet his thoughts on crypto vs fiat money are well documented. It’s just this kind of stance, taken by so many in the “new” establishment at the top of the current financial pyramid, who also see the necessity for change toward new ideas and systems that can so away with the worst of the status quo, well represented above by Buffet & Munger and other “crypto haters”.

Government is a corporation in the limit

In yet another interview excerpt, Musk goes even deeper into his belief that – in his exact words: “if you don’t like corporations should really hate governments”

watch:

While this particular statement arose out of a spat with Senator Elizabeth Warren regarding taxes, the overall concept of challenging the status quo and the, clearly failed, systems perpetuated, remains in play.

Web3, and how Web2 and legacy financial structures are linked

Although fraught with infighting – the typical bitcoin vs. Ethereum vs. Doge vs. Shiba Inu internal debates and criticisms are not on the magnitude of the division between those that generally support and benefit from, for example, status quo financial structure and fossil fuel business, vs those that favor Blockchain and Sustainable energy.

Further, the spirit of the clash between Web2 and Web3 rests not on the tech or the systems themselves, which it can be argued are the same, but on the beliefs and intent of each camp.

The surveillance capitalism business models of web2, epitomized by Facebook and Google are diametrically opposed to the spirit and stated goals of web3, just as bitcoin was created out of a time that, not coincidentally, corresponded to the 2008 crash and crisis born of the greed and corruption of the legacy economic establishment.

There are two distinct camps that have emerged.

Those, such as Tesla and Elon Musk, that reject the traditional holy grail of shareholder value and instead embrace, for example, a more enlightened mission “to accelerate the transition to sustainable energy”. This aligns with any individual choosing the support crypto as a “Hodler” or at least believer, vs. those that support the legacy systems of finance, the fossil fuel industrial complex and Web2’s exploitative business model.

This divide is the ultimate test of our time and it will only grow in stature and importance.

The correspondence between forward looking innovation in all human thought, communication and action is already too big to stop and cannot be wished away.

There will undoubtedly be setbacks to these new directions, and there will be attacks using more than insults, such as those quoted above, but the time for the unstoppable force to be quelled is long since past. Coke and a smile? No thanks.

Related Articles:

Check out Lynxotic on YouTube

Enjoy Lynxotic at Google News and Apple News on your iPhone, iPad or Mac.

Find books on Music, Movies & Entertainment and many other topics at our sister site: Cherrybooks on Bookshop.org

Lynxotic may receive a small commission based on any purchases made by following links from this page

Business, Crypto, News, Observation, Tech

Cryptocurrency-funded groups called DAOs are becoming charities – here are some issues to watch

Video

Above: Photo / Collage / Lynxotic

Cryptocurrency is becoming a more familiar way to pay for things.

One option is as part of a crowd, through a decentralized autonomous organization. In this relatively new kind of group, also called a DAO, decisions and choices are governed by holders of one kind of cryptocurrency token, such as ethereum or bitcoin. DAOs also use “smart contracts” that make decisions through online votes by all participants who wish to weigh in and other forms of automation.

DAOs are essentially clubs that harness both crowdfunding and cryptocurrency to operate in arenas from art to sports. They are also cropping up in philanthropy.

One good example is the Big Green DAO. Launched in late 2021, it’s tied to a decade-old food justice charity that had revenue in excess of US$9 million in 2019.

Big Green’s founder is Kimbal Musk, who is Elon Musk’s brother and a member of Tesla’s board. The DAO version of his nonprofit promises to “disrupt philanthropic hierarchies” by reducing overhead spending and shaving other expenses.

Watch Video

New terrain

Based on my research regarding crypto-assets, I believe that there are several considerations that donors and charities should keep in mind as these arrangements emerge.

First, DAOs have little if any formal infrastructure. Some states simply require one individual to be designated as the agent of record. Wyoming passed a law in 2021 – the first of its kind in the United States – that legally recognizes DAOs as legal entities. It still requires the DAO to be organized as a Wyoming-based limited liability company, with an individual identified as the registered agent.

In theory, at least, when combined with the quick nature of how DAO decisions are made, this means that nonprofits can achieve more and respond more quickly to changing circumstances, while spending less on administrative staff and other kinds of overhead.

Until now, most cryptocurrency donations to charities simply provided capital to eligible organizations that operate like any other standard nonprofit.

For tax purposes, donating cryptocurrency is like giving away stocks, bonds or other property, rather than donating money. This means, typically, that cryptocurrency donations actually provide donors with a larger tax benefit versus cash donations. If a donor were to instead liquidate their cryptocurrency prior to making a gift, they would first have to pay capital gains taxes, and they would have less money to give away.

Check out Lynxotic on YouTube

Watch Video

However, it’s unclear whether funds can legally flow to, through and out of a charitable decentralized autonomous organization.

Nonprofits are subject to regulatory enforcement and need to be chartered in a particular state. So far, it’s unclear how regulators, such as the Internal Revenue Service or state charity offices, will be able to monitor or audit these groups.

It’s also unclear whether the very nature of DAOs is compatible with charitable donations.

In most, if not all, instances of for-profit DAOs – or even DAOs organized for a specific one-time purpose, such as attempting to purchase an original copy of the U.S. Constitution – cash or appreciated property that is contributed to the organization is exchanged for governance tokens. The tokens essentially represent a fractional form of collective ownership.

This could be problematic. When donors make charitable contributions, they relinquish the money or asset they just gave to the charity. A basic condition for having a donation be eligible for favorable tax treatment by the authorities is that the donor gets nothing of value in return.

The authorities may eventually determine that the distribution of virtual tokens to donors, even if those tokens aren’t used for anything outside the scope of the nonprofit, violates this precondition.

Wild rides

The clearest risk with those gifts is probably their volatility.

Overall, the cryptocurrency’s total market value sank to $1.6 trillion on Feb. 3, 2022, down from $2.85 trillion three months earlier.

Charities either need to convert these donations into U.S. dollars right away, as they do with donated stocks, or gamble regarding their future value.

Despite all the operational, financial and legal obstacles nonprofit DAOs face, I’m excited about the opportunities with these crowd-managed charities funded by cryptocurrency donations because of their potential for a high degree of transparency paired with low overhead.

Sean Stein Smith, Assistant Professor of Economics and Business, Lehman College, CUNY

Originally published from The Conversation by Sean Stein Smith and republished under a Creative Commons license. Read the original article.

Find books on Music, Movies & Entertainment and many other topics at our sister site: Cherrybooks on Bookshop.org

Lynxotic may receive a small commission based on any purchases made by following links from this page

Business, Crypto, News, Tech

Why are people calling Bitcoin a religion?

Video

Read enough about Bitcoin, and you’ll inevitably come across people who refer to the cryptocurrency as a religion

above: click for video

Above: Photo / Collage / Lynxotic

Bloomberg’s Lorcan Roche Kelly called Bitcoin “the first true religion of the 21st century.” Bitcoin promoter Hass McCook has taken to calling himself “The Friar” and wrote a series of Medium pieces comparing Bitcoin to a religion. There is a Church of Bitcoin, founded in 2017, that explicitly calls legendary Bitcoin creator Satoshi Nakamoto its “prophet.”

In Austin, Texas, there are billboards with slogans like “Crypto Is Real” that weirdly mirror the ubiquitous billboards about Jesus found on Texas highways. Like many religions, Bitcoin even has dietary restrictions associated with it.

Religion’s dirty secret

So does Bitcoin’s having prophets, evangelists and dietary laws make it a religion or not?

As a scholar of religion, I think this is the wrong question to ask.

The dirty secret of religious studies is that there is no universal definition of what religion is. Traditions such as Christianity, Islam and Buddhism certainly exist and have similarities, but the idea that these are all examples of religion is relatively new.

The word “religion” as it’s used today – a vague category that includes certain cultural ideas and practices related to God, the afterlife or morality – arose in Europe around the 16th century. Before this, many Europeans understood that there were only three types of people in the world: Christians, Jews and heathens.

Above: Photo / Collage / Lynxotic

This model shifted after the Protestant Reformation when a long series of wars began between Catholics and Protestants. These became known as “wars of religion,” and religion became a way of talking about differences between Christians. At the same time, Europeans were encountering other cultures through exploration and colonialism. Some of the traditions they encountered shared certain similarities to Christianity and were also deemed religions.

Non-European languages have historically not had a direct equivalent to the word “religion.” What has counted as religion has changed over the centuries, and there are always political interests at stake in determining whether or not something is a religion.

As religion scholar Russell McCutcheon argues, “The interesting thing to study, then, is not what religion is or is not, but ‘the making of it’ process itself – whether that manufacturing activity takes place in a courtroom or is a claim made by a group about their own behaviors and institutions.”

Critics highlight irrationality

With this in mind, why would anyone claim that Bitcoin is a religion?

Some commentators seem to be making this claim to steer investors away from Bitcoin. Emerging market fund manager Mark Mobius, in an attempt to tamp down enthusiasm about cryptocurrency, said that “crypto is a religion, not an investment.”

His statement, however, is an example of a false dichotomy fallacy, or the assumption that if something is one thing, it cannot be another. There is no reason that a religion cannot also be an investment, a political system or nearly anything else.

Mobius’ point, though, is that “religion,” like cryptocurrency, is irrational. This criticism of religion has been around since the Enlightenment, when Voltaire wrote, “Nothing can be more contrary to religion and the clergy than reason and common sense.”

In this case, labeling Bitcoin a “religion” suggests that bitcoin investors are fanatics and not making rational choices.

Bitcoin as good and wholesome

On the other hand, some Bitcoin proponents have leaned into the religion label. McCook’s articles use the language of religion to highlight certain aspects of Bitcoin culture and to normalize them.

For example, “stacking sats” – the practice of regularly buying small fractions of bitcoins – sounds weird. But McCook refers to this practice as a religious ritual, and more specifically as “tithing.” Many churches practice tithing, in which members make regular donations to support their church. So this comparison makes sat stacking seem more familiar.

While for some people religion may be associated with the irrational, it is also associated with what religion scholar Doug Cowan calls “the good, moral and decent fallacy.” That is, some people often assume if something is really a religion, it must represent something good. People who “stack sats” might sound weird. But people who “tithe” could sound principled and wholesome.

Using religion as a framework

For religion scholars, categorizing something as a religion can pave the way for new insights.

As religion scholar J.Z. Smith writes, “‘Religion’ is not a native term; it is created by scholars for their intellectual purposes and therefore is theirs to define.” For Smith, categorizing certain traditions or cultural institutions as religions creates a comparative framework that will hopefully result in some new understanding. With this in mind, comparing Bitcoin to a tradition like Christianity may cause people to notice things that they didn’t before.

For example, many religions were founded by charismatic leaders. Charismatic authority does not come from any government office or tradition but solely from the relationship between a leader and their followers. Charismatic leaders are seen by their followers as superhuman or at least extraordinary. Because this relationship is precarious, leaders often remain aloof to keep followers from seeing them as ordinary human beings.

Several commentators have noted that Bitcoin inventor Satoshi Nakamoto resembles a sort of prophet. Nakamoto’s true identity – or whether Nakamoto is actually a team of people – remains a mystery. But the intrigue surrounding this figure is a source of charisma with consequences for bitcoin’s economic value. Many who invest in bitcoin do so in part because they regard Nakamoto as a genius and an economic rebel. In Budapest, artists even erected a bronze statue as a tribute to Nakamoto.

There’s also a connection between Bitcoin and millennialism, or the belief in a coming collective salvation for a select group of people.

In Christianity, millennial expectations involve the return of Jesus and the final judgment of the living and the dead. Some Bitcoiners believe in an inevitable coming “hyperbitcoinization” in which bitcoin will be the only valid currency. When this happens, the “Bitcoin believers” who invested will be justified, while the “no coiners” who shunned cryptocurrency will lose everything.

A path to salvation

Finally, some Bitcoiners view bitcoin as not just a way to make money, but as the answer to all of humanity’s problems.

“Because the root cause of all of our problems is basically money printing and capital misallocation as a result of that,” McCook argues, “the only way the whales are going to be saved, or the trees are going to be saved, or the kids are going to be saved, is if we just stop the degeneracy.”

[Explore the intersection of faith, politics, arts and culture. Sign up for This Week in Religion.]

This attitude may be the most significant point of comparison with religious traditions. In his book “God Is Not One,” religion professor Stephen Prothero highlights the distinctiveness of world religions using a four-point model, in which each tradition identifies a unique problem with the human condition, posits a solution, offers specific practices to achieve the solution and puts forth exemplars to model that path.

This model can be applied to Bitcoin: The problem is fiat currency, the solution is Bitcoin, and the practices include encouraging others to invest, “stacking sats” and “hodling” – refusing to sell bitcoin to keep its value up. The exemplars include Satoshi and other figures involved in the creation of blockchain technology.

So does this comparison prove that Bitcoin is a religion?

Not necessarily, because theologians, sociologists and legal theorists have many different definitions of religion, all of which are more or less useful depending on what the definition is being used for.

However, this comparison may help people understand why Bitcoin has become so attractive to so many people, in ways that would not be possible if Bitcoin were approached as a purely economic phenomenon.

Joseph P. Laycock, Assistant Professor of Religious Studies, Texas State University

Originally published from The Conversation by Joseph P. Laycock and republished under a Creative Commons license. Read the original article.

watch video

Check out Lynxotic on YouTube

Find books on Music, Movies & Entertainment and many other topics at our sister site: Cherrybooks on Bookshop.org

Lynxotic may receive a small commission based on any purchases made by following links from this page

Crypto, Cutting Edge, Tech

From metaverse to DAOs, a guide to 2021’s tech buzzwords

Video
  • From ‘metaverse’ to ‘NFT’ – here’s a wrap-up of the key buzzwords that shaped 2021 in the tech industry.
  • These subjects were the talk of the town in 2021, as the tech industry transitions into a new age.
  • A DAO tried to buy a rare copy of the U.S. Constitution, whilst NFTs took the art world by storm.

This year, tech CEOs drew inspiration from a 1990s sci-fi novel, Reddit investors’ lexicon seeped into the mainstream as “diamond hands” and “apes” shook Wall Street, and something called a DAO tried to buy a rare copy of the U.S. Constitution.

If you’re still drawing a blank as 2021 wraps up, here’s a short glossary:

Metaverse

The metaverse broadly refers to shared, immersive digital environments which people can move between and may access via virtual reality or augmented reality headsets or computer screens. read more

Some tech CEOs are betting it will be the successor to the mobile internet. The term was coined in the dystopian novel “Snow Crash” three decades ago. This year CEOs of tech companies from Microsoft to Match Group have discussed their roles in building the metaverse. In October, Facebook renamed itself Meta to reflect its new metaverse focus.

Web3

Web3 is used to describe a potential next phase of the internet: a decentralized internet run on the record-keeping technology blockchain.

This model, where users would have ownership stakes in platforms and applications, would differ from today’s internet, known as Web2, where a few major tech giants like Facebook and Alphabet’s Google control the platforms.

Social audio

Tech companies waxed lyrical this year about tools for live audio conversations, rushing to release features after the buzzy, once invite-only app Clubhouse saw an initial surge amid COVID-19 lockdowns. read more

NFT

Non-fungible tokens, which exploded in popularity this year, are a type of digital asset that exists on a blockchain, a record of transactions kept on networked computers. read more

In March, a work by American artist Beeple sold for nearly $70 million at Christie’s, the first ever sale by a major auction house of art that does not exist in physical form.

Decentralization 

Decentralizing, or the transfer of power and operations from central authorities like companies or governments to the hands of users, emerged as a key theme in the tech industry.

Such shifts could affect everything from how industries and markets are organized to functions like content moderation of platforms. Twitter, for example, is investing in a project to build a decentralized common standard for social networks, dubbed Bluesky. 

Check out Vitalik on YT

DAO

A decentralized autonomous organization (DAO) is generally an internet community owned by its members and run on blockchain technology. DAOs use smart contracts, pieces of code that establish the group’s rules and automatically execute decisions.

In recent months, crowd-funded crypto-group ConstitutionDAO tried and failed to buy a rare copy of the U.S. Constitution in an auction held by Sotheby’s. 

Stonks

This deliberate misspelling of “stocks,” which originated with an internet meme, made headlines as online traders congregating in forums like Reddit’s WallStreetBets drove up stocks including GameStop and AMC. The lingo of these traders, calling themselves “apes” or praising the “diamond hands” who held positions during big market swings, became mainstream.

GameFi

GameFi is a broad term referring to the trend of gamers earning cryptocurrency through playing video games, where players can make money through mechanisms like getting financial tokens for winning battles in the popular game Axie Infinity.

Altcoin

The term covers all cryptocurrencies aside from Bitcoin, ranging from ethereum, which aims to be the backbone of a future financial system, to Dogecoin, a digital currency originally created as a joke and popularized by Tesla CEO Elon Musk.

FSD BETA

Tesla released a test version of its upgraded Full Self-Driving (FSD) software, a system of driving-assistance features – like automatically changing lanes and make turns – to the wider public this year.

The name of the much-scrutinized software has itself been contentious, with regulators and users saying it misrepresents its capabilities as it still requires driver attention.

Fabs

“Fabs,” short for a semiconductor fabrication plant, entered the mainstream lexicon this year as a shortage of chips from fabs were blamed for the global shortage of everything from cars to gadgets.

Net zero

A term, popularized this year thanks to the COP26 U.N. climate talks in Glasgow, for saying a country, company, or product does not contribute to global greenhouse gas emissions. That’s usually accomplished by cutting emissions, such as use of fossil fuels, and balancing any remaining emissions with efforts to soak up carbon, like planting trees. Critics say any emissions are unacceptable.

Originally published on World Economic Forum and republished under  Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License.

Check out Lynxotic on YouTube

Related Articles:

Find books on Sci-Fi, VR and The Metaverse and many other topics at our sister site: Cherrybooks on Bookshop.org

Enjoy Lynxotic at Apple News on your iPhone, iPad or Mac.

Lynxotic may receive a small commission based on any purchases made by following links from this page

AI, Cutting Edge, Esoteric, Gaming, Observation, Tech

What is the metaverse? 2 media and information experts explain

Video

Above: Photo / Pixabay

The metaverse is a network of always-on virtual environments in which many people can interact with one another and digital objects while operating virtual representations – or avatars – of themselves. Think of a combination of immersive virtual reality, a massively multiplayer online role-playing game and the web. 

The metaverse is a concept from science fiction that many people in the technology industry envision as the successor to today’s internet. It’s only a vision at this point, but technology companies like Facebook are aiming to make it the setting for many online activities, including work, play, studying and shopping.

Metaverse is a portmanteau of meta, meaning transcendent, and verse, from universe. Sci-fi novelist Neal Stephenson coined the term in his 1992 novel “Snow Crash” to describe the virtual world in which the protagonist, Hiro Protagonist, socializes, shops and vanquishes real-world enemies through his avatar. The concept predates “Snow Crash” and was popularized as “cyberspace” in William Gibson’s groundbreaking 1984 novel “Neuromancer.”

There are three key aspects of the metaverse: presence, interoperability and standardization. 

Presence is the feeling of actually being in a virtual space, with virtual others. Decades of research has shown that this sense of embodiment improves the quality of online interactions. This sense of presence is achieved through virtual reality technologies such as head-mounted displays.

Interoperability means being able to seamlessly travel between virtual spaces with the same virtual assets, such as avatars and digital items. ReadyPlayerMe allows people to create an avatar that they can use in hundreds of different virtual worlds, including in Zoom meetings through apps like Animaze. Meanwhile, blockchain technologies such as cryptocurrenciesand nonfungible tokens facilitate the transfer of digital goods across virtual borders.

Standardization is what enables interoperability of platforms and services across the metaverse. As with all mass-media technologies – from the printing press to texting – common technological standards are essential for widespread adoption. International organizations such as the Open Metaverse Interoperability Group define these standards. 

Why the metaverse matters

If the metaverse does become the successor to the internet, who builds it, and how, is extremely important to the future of the economy and society as a whole. Facebook is aiming to play a leading role in shaping the metaverse, in part by investing heavily in virtual reality. Facebook CEO Mark Zuckerberg explained in an interview his view that the metaverse spans non-immersive platforms like today’s social media as well as immersive 3D media technologies such as virtual reality, and that it will be for work as well as play.Hollywood has embraced the metaverse in movies like ‘Ready Player One.’

The metaverse might one day resemble the flashy fictional Oasis of Ernest Cline’s “Ready Player One,” but until then you can turn to games like Fortnite and Roblox, virtual reality social media platforms like VRChat and AltspaceVR, and virtual work environments like Immersed for a taste of the immersive and connected metaverse experience. As these siloed spaces converge and become increasingly interoperable, watch for a truly singular metaverse to emerge.

Originally published on The Conversation by Rabindra Ratan & Yiming Lei and republished under a Creative Common License (CC BY-ND 4.0).

Related Articles:

Check out Lynxotic on YouTube

Find books on Sci-Fi, VR and The Metaverse and many other topics at our sister site: Cherrybooks on Bookshop.org

Enjoy Lynxotic at Apple News on your iPhone, iPad or Mac.

Lynxotic may receive a small commission based on any purchases made by following links from this page

Breaking News, Crypto, Finance

China Central Bank declares Bitcoin & all crypto transactions illegal

China is at the forefront of government opposition to cryptocurrencies

The central bank of China stated as a declaration that all transactions involving Bitcoin and any “virtual” currencies illegal, according to the AP.

This seems to be an escalation of the various methods being used to block and prohibit the use of any currency or “money” outside the direct control of the Chinese government.

In a notice released by the central bank the reasoning was elaborated on – stating that digital currencies such as Bitcoin, Ethereum and others disrupt the current financial system and encourage and help facilitate money-laundering and other crimes.

“Virtual currency derivative transactions are all illegal financial activities and are strictly prohibited,”

–the People’s Bank of China

The price of Bitcoin fell, to $41,180, in the hours after the announcement. Other major cryptocurrencies also fell. . Ethereum dropped almost 10%, falling from $3,100 to around $2,758.

Those levels appeared to be a short term low as there has been a recovery bounce since the initial reaction selloff.

China is gearing up for it’s own ‘innovations’ involving digital currencies and transactions

This clampdown follows the banning of Bitcoin mining and an exodus of a large number of Chinese mining operations, many relocating to the US, Europe, Southeast Asia and elsewhere. At the peak, Chinese miners accounted for around 3/4 of the world’s electricity consumption related to crypto mining, according to the Cambridge Bitcoin Electricity Consumption index.

That share is still the highest, though far lower, with the USA being the second largest consumer of electricity used for Bitcoin mining.

There is a worldwide “showdown” of sorts building, with cryptocurrency adherents touting, often with great resolve, the privacy, anonymity and “freedom” of using the coins, while many governments, China, and Turkey being outspoken, consider the potential losses that could come from allowing private actors to control financial transactions.

Although fiat currencies all have cash, paper bills, that can also be used anonymously, the potential criminal laundering has government controls and laws in place to minimize (or at least attempt to minimize) the magnitude of the problem.

tumbles

Governments getting increasingly worried as crypto adoption continues to expand worldwide

Many governments, including the People’s Bank of China, are developing electronic versions of the local fiat currency, such as China’s yuan for example. to facilitate cashless transactions which, unlike with Bitcoin, can be more easily tracked and controlled by the local authorities, communist or otherwise.

Calls and warning are also building with Regulators in many countries, including the US, warning of the dangers and emphasizing that they want cryptocurrencies to have greater oversight.

For example, Gary Gensler, chairman of the Securities and Exchange Commission, recently said that investors need more protection in the cryptocurrency market, calling the current state of the largely unregulated market “rife with fraud, scams and abuse” and compared it to the “Wild West.”

The SEC has already cracked down on cases of alleged freud involving crypto, but Gensler believes that the agency will need more authority from Congress to and funding to adequately regulate the market..

As a result, miners have been moving operations out of China.

Two years ago, China alone accounted for around three-quarters of all the electricity used for crypto mining, by far the most in the world, according to the Cambridge Bitcoin Electricity Consumption index.

Expect more government announcements involving crypto and new ways to try to control or inhibit its proliferation

The looming showdown appears heading for a significant and dangerous climax, with both sides, crypto enthusiasts and private holders and users of the coins on the one side, and, in some cases, terrified governments on the other wanting to outlaw and stamp out the entire sector.

In the US this will be difficult, with so many high profile and powerful individuals and companies already embracing the idea that the future will contain, at least for the foreseeable time frame, both the government controlled fiat system and the surging and diverse cryptocurrency systems.

Find books on Music, Movies & Entertainment and many other topics at our sister site: Cherrybooks on Bookshop.org

Enjoy Lynxotic at Apple News on your iPhone, iPad or Mac.

Lynxotic may receive a small commission based on any purchases made by following links from this page

Crypto, Entertainment

Reese Witherspoon Crashes into Cryptocurrency

Above: Photo Collage / Lynxotic

Receives Lots of commentary: Support, Suggestions, NFT Requests and Memes

Actress, producer, entrepreneur – and now a recently, new owner and proponent of the Ethereum (ETH) cryptocurrency.  Aside from her characteristically ebullient tweet announcing her purchase there has, as of yet been little verbiage to to expand on her reasoning or perspective on the space.

Also not clear how she arrived at the choice of ETH rather than the obvious #1 crypto BitCoin.

While some twitter reactions were slanted toward the negative, implying that her entry into the space implies some sort of over commercialization that is a sign of impending decline or decay.

This could well be a possibility but there appears to be more going on here beneath the surface.

Though most of the attention toward Cryptocurrencies revolves around speculation on a given coins price vs. the US $, there is much more to the phenom than that very recent trend.
Even after the mania and the get-rich-quick schemes are long gone the use and existence of Bitcoin and Blockchain is likely to go on.

A new cryptocurrency called “Pi” (π) allows anyone to “mine” the currency from a cell phone. With over 23 million “Pioneers” mining the goal of 100 million is in sight and when reached the coin will launch. Until then there is no price for the coin and it can only be earned by mining with your phone.

The egalitarian and decentralized concept behind the coin is new and could take cryptocurrency to a whole new level, all without price speculation being the main driver. Learn more about Pi here.

Witherspoon launched Hello Sunshine back in 2016 to provide a digital space to showcase women storytelling.

The company recently sold, earlier this year, for a whopping $900 million.  And it sounds like she’s using some of that payout to test the crypto waters.

The “Legally Blonde” actress took to her social media account to trumpet the news, “Just bought my first ETH! Let’s do this #cryptotwitter”. As of this writing the current price of 1 ETH is $3,942.21 (although prices can fluctuate quickly in either direction).

This is not far off the all time high of over $4100 that was breached in May of this year.

Her tweet was liked instantly by 60k and her followers quickly sky rocketed, now at 2.9 million.

Many took the opportunity to comment on her account giving the actress a taste of Crypto Twitter (which as you read the comments, you can see are quite intense).  

Vocal Youtuber, social media star, brother to Jake and “boxer” Logan Paul didn’t waste any time by responding to Reese’s tweet offering her a NFT of the World of Women collection (a project aimed to foster diversity within the NFT space). 

This is not likely without a self-promoting aspect as Paul launched his new native ZOO” crypto token for his NFT game called CryptoZoo.

Another high profile blonde added to the Crypto Twitterati conversation with her preferred takes in digital coin.

It’s just more evidence that the crypto future is not going to disappear anytime soon – there are just too many strata of society that are taking a stake in the continued existence and growth of blockchain and crypto.

Other crypto coin users were compelled to let Witherspoon know how they feel, flooding her account with tweets explaining the benefits of competing crypto coins, sending unsolicited pitches for a varie f the obvious choices including Bitcoin and Dogecoin. 

DogeCoin is likely best known as the crypto alt-coin that Elon Musk has often championed from his twitter account, along with Mark Cuban and others.

During his stint hosting Saturday Night Live the billionaire (Musk) also broadcast his involvement with the Doge, and has received the moniker “DogeFather” as a result.

Related:

Find books on Music, Movies & Entertainment and many other topics at our sister site: Cherrybooks on Bookshop.org

Enjoy Lynxotic at Apple News on your iPhone, iPad or Mac.

Lynxotic may receive a small commission based on any purchases made by following links from this page

Crypto

Anyone got Norton 360? Now you’re a Crypto Miner

Norton has announced integrated Ethereum mining software

Norton Antivirus software, and the company that makes it, NortonLifeLock , best known for being bundled annoyingly in new Windows computers, has announced via press release that they intend to bundle a feature they call “Norton™ Crypto”.

The feature which they say will be added to Norton360 starting tomorrow for “early adopters” to begin mining from within the already installed software.

They are also, with a very helpful tone, declaring that they will also bundle an ethereum wallet which will be safely stored in “the cloud” so it won’t be lost.

They do not specify any minimum computing requirements but they do say that :

“Norton Crypto is expected to become available to all Norton 360 customers1 in the coming weeks.”

Yo’ dude this shit’s getting real

So, although this comes off as a somewhat desperate attempt to try and maintain relevance after likely millions of forced installations are never monetized (just a guess) it nevertheless could send millions of civilians into crypto mining without “just a few clicks”.

This brings up so many questions immediately it’s a bit mind-boggling. Although the first media reactions, predictably, mention “environmental” issues and take a negative tone, doubting why anyone would want to risk “taxing” the computer’s GPU for such a task.

Of course questions such as how mining efficiency would be affected by millions of “micro-miners” there is also the question of why wouldn’t a virus software subscriber want to essential use their idle computer resources to pay for the software itself (cut to happy Norton execs congratulating themselves on the genius idea).

Above:Photo Credit / Norton

Could there be another story here? Mainstream experience with crypto, demystifying the blockchain?

Further and more interestingly. If more mainstream software companies and even service subscription software companies follow suit and millions if not hundreds of millions of average people begin collecting small months ethereum “dividends”, even if only $10 per month, how easy is it to put the Genie back into the bottle, so to speak?

When millions are not “irresponsibly” using dollars or euros to purchase cryptocurrencies, but rather, instead “earn” a few extra dollars, once the coins are traded for local “hard” (read: fiat) currencies, here and there for each computer or GPU they own, can the whole thing, like green stamps, air miles, credit card loyalty program be suddenly outlawed?

As appears everywhere more and more on a daily basis, isn’t crypto, via Bitcoin, Ethereum and many various alt coins, become more and more woven into the financial system? Isn’t the number of people who own, buy or even mine crypto exploding exponentially on a daily basis?

Isn’t this just one more sign that the trend of crypto becoming “normalized” and woven more and more deeply into the fabric of our lives is not likely to reverse itself?

Yes. That’s the answer. More news tomorrow, probably.

Find books on Money and many other topics at our sister site: Cherrybooks on Bookshop.org

Enjoy Lynxotic at Apple News on your iPhone, iPad or Mac.

Lynxotic may receive a small commission based on any purchases made by following links from this page

Apps, Crypto, Social Media, Tech, TikTok

Crypto-Kids of TikTok will Never Give Up on Blockchain

Video

Above: ‘Photo Collage / Lynxotic / Unsplash

The TikTok indicator is saying crypto is here to stay…

It was, astoundingly, less than a month ago, May 8th, 2021, that Ethereum reached an all time high of $4,169. That was two days after Dogecoin, full of Musk momentum, hit .69 cents, after starting the year around .10 cents. Bitcoin had peaked about a month earlier at $63,674 on April 12th.

As is so often seen in manias, bubbles and feeding frenzies, at the time you could not find a person in America who was not talking about crypto. The proverbial shoe-shine boy was now your cousin, your uncle even your grandmother and they were all bursting with FOMO after reading the articles, especially the ones about the Dogecoin millionaires, who had made fortunes starting with a tiny sum.

Now, many of those same people are seeing a typical reversal, correction, bear phase, whatever you want to call it, and they are just as convinced of crypto’s demise today as they were that it was a sure-thing less than a month ago.

The kids get it and are not backing down

Much like TikTok itself, the later arrivals to the huge phenomena that is Crypto are the old and out-of-touch, not the young and fast. Interestingly, an anecdotal survey of young and successful crypto “influencers” on TikTok and other social media are not shocked about the downturn. They get it.

Many have been learning about and actively involved with the crypto world for years. There is a real sense that the corrupt events that led to the financial crisis and near collapse in 2008 shaped their thinking and hardened their resolve to search for a better way. Crypto’s ideals and independent foundations have provided that in a real, tangible way, it seems.

While the mainstream of the media and the bulk of the financial establishment swing from an almost grudging respect to complete derision and rejection, it appears to be the underlying concepts and ideologies that present such a stark contrast in the perspective of up and coming generations.

https://www.tiktok.com/@cryptocita/video/6954932256267980037?sender_device=pc&sender_web_id=6967902097740793350&is_from_webapp=v1&is_copy_url=0

While perhaps no less vulnerable to the excitement of 20,000 % gains and other sensational enticements, there is a somewhat surprising depth and resolve that is demonstrated in a level headed and clear thinking allegiance to the reasons crypto was created in the first place.

The outlandish price gains (and drops) are only window dressing

At the core of the question of crypto’s eventual widespread adoption and long term success lies a simple truth: fiat currencies and the governments that print them are a big problem for the world’s future. And, naturally, the new generations of the future will be those that are most affected.

@kenny.finance

My attempt to learn about Bitcoin 📚 #bitcoin #crypto #moneytok

♬ Astronaut In The Ocean – Masked Wolf

What Elon Musk recently called “The true battle… between fiat & crypto” is one that Gen-Z appear to understand in ways that 100-year-old billionaires like Warren Buffet and his side-kick Charlie Munger do not. Or maybe they just side with the financial establishment they helped build, to the bitter end.

@pandtbusiness

Here are my biggest crypto positions #crypto #bitcoin #stockmarket

♬ Pieces (Solo Piano Version) – Danilo Stankovic

For any reading this that also “get it”, it would be wise to understand that, even at this early phase in the future of “the true battle” there is an army rising. It is not one of suicidal fossil fuels and battlefield tanks but one of ideology and belief in the possibility of a better way.

The army that will stand up for the survival and continued development of cryptocurrencies and blockchain and “DeFi” are not a few random conscripts, they are the generations of the future and they have chosen a side.

For that reason, all signs point to an unlikely permanent collapse of cryptocurrencies and an impossibility of banning or stopping them. It is already too late to prevent their eventual rise.

@cryptomasun

E A R L Y. #crypto #bitcoin #cryptocurrency #investing

♬ Daddy Issues Slowed – Remix – Eduardo Luzquiños & RH Music

Find books on Money and many other topics at our sister site: Cherrybooks on Bookshop.org

Enjoy Lynxotic at Apple News on your iPhone, iPad or Mac.

Lynxotic may receive a small commission based on any purchases made by following links from this page

Cutting Edge, Observation, Politics, Tech

Why Web Scraping Is Vital to Democracy

Photo Credit / Fabio / Unsplash

Journalists have used scrapers to collect data that rooted out extremist cops, tracked lobbyists, and uncovered an underground market for adopted children

By: The Markup Staff

The fruits of web scraping—using code to harvest data and information from websites—are all around us.

People build scrapers that can find every Applebee’s on the planet or collect congressional legislation and votes or track fancy watches for sale on fan websites. Businesses use scrapers to manage their online retail inventory and monitor competitors’ prices. Lots of well-known sites use scrapers to do things like track airline ticket prices and job listings. Google is essentially a giant, crawling web scraper.

Scrapers are also the tools of watchdogs and journalists, which is why The Markup filed an amicus brief in a case before the U.S. Supreme Court this week that threatens to make scraping illegal.

Web Scraping with Python: Collecting More Data from the Modern Web

The case itself—Van Buren v. United States—is not about scraping but rather a legal question regarding the prosecution of a Georgia police officer, Nathan Van Buren, who was bribed to look up confidential information in a law enforcement database. Van Buren was prosecuted under the Computer Fraud and Abuse Act (CFAA), which prohibits unauthorized access to a computer network such as computer hacking, where someone breaks into a system to steal information (or, as dramatized in the 1980s classic movie “WarGames,” potentially start World War III).

In Van Buren’s case, since he was allowed to access the database for work, the question is whether the court will broadly define his troubling activities as “exceeding authorized access” to extract data, which is what would make it a crime under the CFAA. And it’s that definition that could affect journalists.

Or, as Justice Neil Gorsuch put it during Monday’s oral arguments, lead in the direction of “perhaps making a federal criminal of us all.”

Investigative journalists and other watchdogs often use scrapers to illuminate issues big and small, from tracking the influence of lobbyists in Peru by harvesting the digital visitor logs for government buildings to monitoring and collecting political ads on Facebook. In both of those instances, the pages and data scraped are publicly available on the internet—no hacking necessary—but sites involved could easily change the fine print on their terms of service to label the aggregation of that information “unauthorized.” And the U.S. Supreme Court, depending on how it rules, could decide that violating those terms of service is a crime under the CFAA.

“A statute that allows powerful forces like the government or wealthy corporate actors to unilaterally criminalize newsgathering activities by blocking these efforts through the terms of service for their websites would violate the First Amendment,” The Markup wrote in our brief.

What sort of work is at risk? Here’s a roundup of some recent journalism made possible by web scraping:

  • The COVID tracking project, from The Atlantic, collects and aggregates data from around the country on a daily basis, serving as a means of monitoring where testing is happening, where the pandemic is growing, and the racial disparities in who’s contracting and dying from the virus.
  • This project, from Reveal, scraped extremist Facebook groups and compared their membership rolls to those of law enforcement groups on Facebook—and found a lot of overlap.
  • Reveal also used scrapers to find that hundreds of millions of dollars in property taxes should have never been charged to Detroit residents who then lost their homes through foreclosure.
  • The Markup’s recent investigation into Google’s search results found that it consistently favors its own products, leaving some websites from which the web giant itself scrapes information struggling for visitors and, therefore, ad revenue. The U.S. Department of Justice cited the issue in an antitrust lawsuit against the company. 
  • In Copy, Paste, Legislate, USA Today found a pattern of cookie-cutter laws, pushed by special interest groups, circulating in legislatures around the country.
  • Reuters scraped social media and message boards to find an underground market for adopted children whose parents, who had usually adopted the children from abroad, decided the children were too much for them. A couple featured in the piece was later convicted of kidnapping as a result of the investigation.
  • Gizmodo was able to use similar tools to find the probable locations of tens of thousands of Ring surveillance cameras.
  • The Trace and The Verge, using scrapers, found people using an online market to sell guns without a license and without performing background checks.

This article was originally published on The Markup and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.

Recent Articles:

Find books on Music, Movies & Entertainment and many other topics at our sister site: Cherrybooks on Bookshop.org

Enjoy Lynxotic at Apple News on your iPhone, iPad or Mac.

Lynxotic may receive a small commission based on any purchases made by following links from this page

Business, Crypto, Economics, Finance

Elon Musk is taking sides in the ‘True Battle’ between Crypto & Fiat

Video

Above:Photo Credit / Unsplash / Collage / Lynxotic

If you are stuck on the word ‘fiat’ this post can help you (everyone else too)

In a single, 14 word reply to a follower (@TheRealShifo) that asked “Yo Elon what do you think about the peeps who are angry at you because of crypto?” He gave a simple answer that is the often unmentioned, yet most important, question regarding crypto vs. fiat, government issued, currency such as the US dollar.

Looking around during the ongoing frenzy surrounding crypto and digital finance you’ll see countless ‘news” stories and blog posts comparing, or pretending to compare cryptocurrencies, especially the two biggest Bitcoin and Ethereum (as coin sometimes referred to as “Ether”) and they virtually always quote the “price” fluctuations of those coins as a certain number of dollars and cents.

Interestingly I have yet to see any of these “comparisons” use the reverse valuation method, such as, “the US dollar is currently worth .00002703 Bitcoin. Can you imagine everything using that as a standard – CNBC quoting stock prices in Bitcoin, your house is “worth” 32 Bitcoins (if you’re in California, for example).

The reason this comes off sounding strange and ridiculous is that all communication related to the US dollar, which has been a fiat currency since abandoning any “backing” (such as gold) and continuing on by decree (or fiat) of the government with no backing other than than decree, also carries a decree (tacit) not to undermine it in public.

So when Elon says:

“The true battle is between fiat & crypto. On balance, I support the latter.”

Simple and straightforward and yet intentionally shrouded in mystery

Musk is directly comparing crypto, generally, and fiat currencies around the world that “float” against each other. And by inference, doing so in terms of the difference between a fiat currency like the US Dollar and a crypto currency, like Bitcoin.

A fiat currency is money that is not backed by a physical commodity like gold, but instead backed by the government that issued it. Most modern currencies, such as the U.S. dollar, euro, pound and yen, are fiat money.

from Wikipedia

The term fiat derives from the Latin word fiat, meaning “let it be done” used in the sense of an order, decree or resolution.

— common Definition

The fact that Bitcoin was created as a digital alternative to fiat money stands at the forefront of that point. The fact that it was designed precisely to counter the drawbacks and dangers of a system based on fiat paper money (or digital ledgers of those paper dollars such as your bank balance or any method to keep track of how many “imaginary” paper dollars you “have”) is exactly the real issue at hand.

photo credit: twitter

It’s no secret that many attack those goals and intentions superficially and dismiss the entire discussion with a wave of the hand. They willfully use the complexity of the cryptographic solutions, at the heart of cryptocurrency, as a way to gloss over the real and substantive problems being targeted.

They prey on the ignorance of the majority to try and discount out of hand any value at all for the movement and the various products.

Opening up the door to this exact exchange and characterizing it as a “battle” in one fowl swoop clarifies and simplifies the real issues and the real reason for the existence, and according to many, including Elon Musk, the need for monetary “reform” or change via a shift toward crypto.

Opening up the door to this exact exchange and characterizing it as a “battle” in one fowl-swoop clarifies and simplifies the real issues and the real reason for the existence of, and the need for, monetary “reform” or change via a shift toward crypto.

D.L.

The “price” of Bitcoin or any other crypto currency on any given day has almost nothing whatsoever to do with that debate.

Speculation abounds but not just in Crypto

The “price” is a function of, mostly, speculation and scarcity, due, in the case of Bitcoin to the mining cap, or at least a perceived scarcity. And additionally the various perceived advantages of crypto such as privacy, decentralization, use of block chain systems, etc.

But the price is like the smoke above the battlefield, not the reason for the battle or any indicator who is winning or who is on the side of might or right.

Two major questions that arise from this tweet and the potential shift toward a clearer and simpler dialogue on crypto are the following:

  1. Is crypto generally, and Bitcoin / Ether more specifically established and entrenched enough to withstand the coming backlash from governments that feel threatened and other status quo institutions that will do whatever it takes to discourage or even stamp out crypto usage?
  2. Will the very battle itself, that Elon Musk says is the current “true” battle, bring even more attention to the weaknesses and problems with the current fiat money system and thereby increase, perhaps inadvertently yet massively, the size of the battle and its stakes?

Alternative systems of trade have been tolerated in the US for some time now. How are those air miles doing? What about the chips and points for perks you got at the Indian Casino? Is it too late to outlaw all crypto without causing a revolution in the streets?

The other side of the (clipped) coin

It is truly surprising to see how little is to be found in the media about the deeper reasons for the rise of crypto. How it sometimes seems like direct criticism of fiat currency is almost taboo.

Naturally any internet search will find many “rabbit hole” sources for all kinds of information critical of the current monetary system, the same system the near total collapse of which in 2008 inspired the creation of bitcoin.

It appears that Elon Musk is emphasizing, in a subdued manner, exactly the way that the nonsense-furor over huge price gains or declines is completely missing the actual point. The “true battle”.

Many stories in the media and millions of private comments are currently following a kind of convoluted logic – first the popularity of crypto (which is linked to the unpopularity of the very messed up fiat system) artificially and massively increases prices in many crypto assets.

This “bubble”, a typical outcome of human herding behavior in financial markets, inevitably bursts or sees large setbacks. Then the coin or crypto system itself is blamed for the human stupidity and greed that caused the distortions of price, just like happened in the dot-com bubble and the 2007 housing bubble and subsequent crash.

The difference is that the crypto bubble, in an interesting way, is in reality due to a surge in skepticism toward fiat currencies, a boom in the prevalence of mistrust toward governments and a combination of fear and greed that is growing, not dissipating.

Although many have rightly criticized Elon Musk’s tweets and odd Saturday Night Live appearance, and there is a kind of mini-backlash (growing?) against all things Musk, in this case it is a healthy and wise tweet that we have shown above.

Reframing, or more aptly refocusing the discussion away from prices and speculative profits and back to the real reasons that cryptos were initially created and why it has gained such massive support is a welcome shift. That this reframing comes from the likes of Musk himself, is fitting and who better to put forth a message to simplify and clarify the nature of the real “battle” at hand.

The following video has some interesting data and arguments for, and mainly against, the fiat regime under which we have lived for most of the last century. Although, in a sense, a kind of advertisement for Gold and Silver, the overview is nevertheless accurate and does not exaggerate the dangers and issues that revolve around the fiat system.

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Lynxotic does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Find books on Money and many other topics at our sister site: Cherrybooks on Bookshop.org

Enjoy Lynxotic at Apple News on your iPhone, iPad or Mac.

Lynxotic may receive a small commission based on any purchases made by following links from this page

Business, Economics, Finance, Observation, Tech

There’s more to Money than Dead Presidents: Crypto is Alive and Well

Above: photo – Dead Presidents Collage – Lynxotic

Haters like Buffet and Mark Cuban’s cheerleading are off base and spreading confusion

Disclaimer first: This opinion article is not investment advice and does not advocate buying any investment vehicle or currency

There are so many misconceptions propagated far and wide these days that it’s hard to choose a place to start. First it’s important to recognize that crypto currencies are not stocks or companies, yes that’s obvious but one of the biggest “anti” argument these days is that there’s an absurdity to the aggregate total value of a “coin” being more than the market cap of the stock of a particular company.

“Ethereum is now worth more than Bank of America”, this nonsense comparison goes, as if the market cap of a stock and the price of a coin times the number of coins in existence has any meaning whatsoever.

Following this logic, however, beneath all the hype, both pro-crypto and anti-crypto, lies a hidden thread to an actual underlying truth.

Though based on obvious common sense, this thread is potentially confusing and convoluted, to say the least. But without seeing it clearly the misconceptions will just keep getting more ridiculous.

In order to illustrate the conundrum a bit of background is needed. For example:

Stocks, in the US are priced in dollars. But how are dollars priced? Isn’t just as accurate to say that when the “price” of the DJIA moves higher (3,4050 at this writing) it is the value of the dollar, in relation to the DJIA that went down?

While this requires a kind of mental gymnastics, these are only due to the constant bombardment meant to keep you from seeing this 100% valid way of viewing stock valuations based in dollars.

There’s another kind of tacit misinformation and that is stating that “inflation” is only relevant when it’s measured by the government. For example if the “bull market” that began in 2009 and continues into 2021 represented a huge increase in stock prices, that is asset inflation.

The inverse of asset inflation is a reduction in dollar value. Less shares of a given stock can be bought for the same number of dollars. The dollars are worth less.

Read more:

And further, crypto, such as BitCoin is measured as having more or less value in dollars. Who is to say the massive rise in the dollar “value” of BitCoin is not representative of a decline in the “intrinsic” value of dollars.

The truth is often hidden in plain sight and that is what drives traditional markets

And that is precisely the point. BitCoin’s existence, which is locked in the mind of Satoshi Nakamoto (if he indeed exists) was indicated cryptically (no pun intended) to be a kind of answer to the instability of the global financial system as was evidence in the crisis of 2008. Taking place nearly concurrently with the birth of the idea of BitCoin.

Seeing the dollar as having a “stable” value and measuring a companies value, via it’s share price, is, let’s just say, perhaps 100 times more absurd than the Dogecoin dog.

Why? Because, for nearly a century the dollar is not backed or moored to anything but the government’s hope that it will retain value and laws that prohibit you and I from using other vehicles as “legal tender”.

The data (and opinions) on this are seemingly endless and yet absolutely critical to understanding our monetary system and where crypto may or may not fit in.

Horseshoe Nails and The Isle of Yap

Many interesting historical facts point toward the reality that money and coinage has always been just as much about the abstract belief in the system, more than any particular “intrinsic” value.

On the Micronesian Isle of Yap there was a functioning monetary system based on huge stones. A New York Times article, published in 1971 described the curious system:

“Every piece has an owner, and everyone knows who the owner is. Even when the money changes hands, it usually stays put. Yapese stone money is the largest and heaviest “coin” in the world.

In earlier days, brave islanders paddled by canoe 300 miles across open ocean to Palau where they cut slices from huge stalactites and brought them back as money. The value depended on how many men were drowned bringing them back. Nowadays, value is usually determined by measurements. We heard various versions, ranging from $10 radial inch to $42 a foot.”

Another article explains that many “wealthy” home (hut) owners displayed their money by leaving it leaning against the front of the house, where all could see the prosperity.

And, as for the prevention of fraud and corruption in any monetary system? Could any be more corrupt than the one that led to credit default swaps and mortgage-backed securities imploding and all the BS that nearly brought down the world’s banking system?

And that is not new either. In the 1800s traveling bank examiners journeyed throughout the US to check on the gold reserves claimed by various banks. More often than not, they found far less gold than was claimed (in today’s fractional banking system little attempt is made to reduce the leverage in the system).

A common, clever, trick to try to “leverage” what little gold was actually on hand was to pile gold coins and ingots on top of a bed of horseshoe nails, hoping that the examiner would weigh the entire concoction only, and never notice the bogus hidden attempt to bolster the weight.

Bitcoin’s system at least attempts to circumvent this typically human brand of fraud and corruption.

In the article “What is Cryptomining” on Techspot a chart was published to illustrate how Satoshi Nakamoto tried to solve the classic trust delimma with the proof of work mining system.

“For example, if Alice has $100 at the beginning of the day, she could promise Bob, Charlie, and David independently that she’d send them each $100 by the end of the day. While Alice could show them that she owns $100 and they’d all be content and agree to the transaction, Alice only has $100. Thus, if at the end of the day, the public ledger (which once finalized is set in stone, so to speak) includes 3 transactions initiated by Alice for $100, the system would be broken and no one would want to use it.

With a centralized system such as in modern day banks, there would exist a single ledger that can validate how much money a certain individual has, and thus it can guarantee that the customer cannot spend more than they own. When talking about a decentralized, peer-to-peer system, however, who’s there to stop a clever individual from spending their money multiple times quickly before getting caught?

To address this potential issue, crypto miners enter the playing field. Essentially, miners play the role of the decentralized banker, and will perform the required gruntwork to ensure that the system is functioning as expected without double-spending. In return for their work, they will be rewarded with some cryptocurrency.”

Buffet, Cuban, Musk & Munger

In clonclusion, Buffet, Munger and The Wall Street Journal may have knowledge and experience but they have also derived benefit from a system that favors those already holding capital, one that also has a tendency to crush those trying to build it.

So, it’s fairly obvious that they are “talking their book” and data mining to produce a self-congratulatory outcome, when they expound on all the reasons that they hate crypto (Munger even called it “disgusting”).

Recent Articles:

As for Musk and Cuban, what’ve they got to lose? At least they “get it”, at least they are open to the idea of a future that has crypto as a part of the financial system. But where will they stand if there is government resistance in a big way, and if attempts to stop the entire crypto movement or “de-fang” it in ways that make it less viable as a true alternative to the status quo? That, my friend, will be the 1000 BitCoin question.

Find books on Music, Movies & Entertainment and many other topics at our sister site: Cherrybooks on Bookshop.org

Enjoy Lynxotic at Apple News on your iPhone, iPad or Mac.

Lynxotic may receive a small commission based on any purchases made by following links from this page