VESA Podcast Ep.I – David Orban

Today we’re taking a look at an important first. It is the start of the VESA Podcast, and as the first guest, we meet David Orban, who was generous with his time to record this conversation. A previous iteration of a podcast was already started in 2017, with some notable guests like Charlie Lee, but now the time was right for a rebrand and a jump up to speed on connecting with people in the scene.

It was also a blessing in disguise that the zoom recording of this podcast was recorded on zoom, and VESA erroneously remembered that the recording quality is HD, which it wasn’t. Luckily the upscaling of the 360p video with AI came to make it a crisp 4K, even if the titles of the books are washed out.

New Podcast

David is an investor, entrepreneur, author, keynote speaker, and thought leader of the global technology landscape. His entrepreneurial accomplishments span several companies founded and grown over more than twenty years. VESA and David first met in Dubai during VESA’s exhibition at the Dubai Mall. Their initial conversation spanned over many in depth topics, touching on the ever changing technology space, entrepreneurship, AI and ethics, and what the future holds for the scene itself. This is an interpretative summary of David’s appearance on the VESA Podcast recently and what that conversation looked like.
To listen to the entire episode on the VESA Podcast on You Tube, click here:
Listen on Spotify
Listen on Youtube

David joins the podcast from his home in Northern Italy, where he feels comfortable surrounded by his impressive library of books and high quality Italian food.
As a starting point, VESA dove into David’s view on his inner science, as he knew based on their previous conversation that David had completed a Vipassana, or a silent retreat. Complete silence with no technology, or any kind of entertainment or study material might seem counterintuitive for a technologist, but David credited the retreat as hugely impactful and positive.

–       It is actually not easy, David says.

He describes the amount of discipline it requires to completely withdraw to a world without electronics, books, newspapers or even eye contact with other people. The discipline was self-administered, understanding the benefits of the practice.
He adds that the recommendation is to meditate one to two hours a day after completing the retreat, but that he hasn’t applied this yet to his daily routine.
The conversation then turns to the opposite end of the spectrum, a world of total electronic or machine integration. How far down the pike are we? Will we even realize, when the chip is installed, or has it indeed already been installed years ago due to our association with technology?


David offers that everything we experience can be dissected on the objective-subjective axis, and further by taking into consideration time and place. What is a subjective experience with little to no relevance to others, versus timeless truths will depend greatly on how the information is curated and presented. Technology as we know it is deeply entwined with the time and place aspect. Technology socializes us and points us in the direction of necessary skills and behaviours. This influence has to be modulated, he states.

MMA of Religion

VESA then wants to present an idea to David that he has been developing in his mind for a little while. The concept pertains to the evolution of religion and what the next step could look like in what could arguably be called a post-Christian world. He suggests that there could emerge an amalgam of religions that takes traditions from different faiths, an MMA (Mixed Martial Arts) of religion, as he calls it.
–       I recommend people be immodest, but humble, David starts as he describes a person capable of connecting the dots across different fields and from various sources of authority.

–       Many are uncomfortable in accepting revealed religions as the answer to essential questions, but as I saw after the collapse of the Berlin wall, people have a need for religious experiences and I respect that, so I feel an evolution to bridge that gap might very well be underway.

 

In many ways you have to regress 200 years in order to resonate with the current church paradigm of wooden long benches and hymns.

VESA notes that a similar ‘religious’ belief surfacing from different fields is the idea that we live in a simulation. This, he says, brings about an attitude which paired with rapidly evolving AI might lead to a pathologically Godless society, lacking spiritual nourishment and transcendence.
The perplexing phenomenon of our time is that at the same time we have the most advanced non-biological technology and the demand to return to being the centre of the universe, so to speak.

Do we live in a simulation?

Inspired by his revelations with his new AI Series Juxtaposers, VESA presents an idea that in the current cultural context of left vs right, what seems to be missing is differentiation between establishment and anti-establishment, and how some times these labels can flip on their heads simply because of provoking thought, as in the case of Russel Brandt, who is now seen as a right-wing person simply because he has vocalized anti-establishment views. This axiom is at the heart of the Juxtaposers- series, which includes polarizing figures like Andrew Tate, Ben Shapiro, AOC and more.

–       If you think about it, the Amish are more anti-establishment than most, it’s just a low dopamine ride, he explains as to why he wanted to draw parallels between Andrew Tate as an Amish apple picker.

As a segway to another cultural context, VESA tells that he had mixed feelings about a video he viewed with Sam Altman and Android Jones discussing AI. To him, Android’s very name and his fervent opposition to AI was in stark contrast.
–       In times gone past, we used to organize ourselves in guilds as a way to control who has the right to express certain trades. Now, perhaps for the first time, we have the opportunity to open the arts for everyone, David says.

–       The current situation is a dam about to burst. The label ‘artist’ is open to everyone and we will devise new metrics of value as a result, he explains.

Listen on YoutubeVESA gives an example of him commissioning a rap song via AI that was purely produced as a soundtrack for him painting in his studio, and how not even the most indulgent king would have dreamed of doing something like that before.

Actioneer

Next, VESA wants to learn more about David’s company Actioneer. He offers himself up as an example of someone who is masterful at their craft and quite observant, but hesitates in fulfilling a role of a CEO or a COO in a company setting, which modern day artists need to consider. What can a company like Actioneer do for artists and others who find themselves in a similar position?
–       The world is so complex that we need all the help we can get. AI can help us decode our questions better  than ever before, as we look into a paradigm where the old system of educating, gaining a job, working and dying is being challenged, David says.
–       The spearhead of this are the founders of startups, and the entrepreneurial spirit is what Actioneer supports. To a select few this has been available for a while through incubators and mentorships, and Actioneer can democratize this help and make it very abundant, he explains.

–       We believe that the world will be as saturated with tools like Actioneer, as it is presently with access to the Internet, because they are such an integral part of our modern lives, he says.

VESA sums up the necessity of these tools by noting that if you don’t become an entrepreneur as an artist, you won’t be an artist for long.

To follow David Orban’s message, you can find him at:
David Orban Dot Com
All socials etc

______

Until next time, 

VESA & Lotta
Crypto & NFT Artist
All links to physical, NFTs, and more below
http://linktr.ee/ArtByVesa

 

Crypto Market Bleeds As Missiles Rain Down On Ukraine

On the heels of Ukraine’s economic troubles, Bitcoin and Ethereum have taken a pounding in the crypto market.

According to multiple news reports Thursday, around two dozen Russian cruise missiles have hit specific targets in two cities in Ukraine, including its capital, Kyiv.

Russia’s attack undoubtedly is the cause of the current tremor shaking the world’s crypto and stock markets.

In the previous 24 hours, the crypto market was valued at $1.66 trillion, down $1.4 trillion from the $3.01 trillion it registered in November as transaction volumes plunged.

Stablecoins accounted for $72.07 billion in total volume during the previous 24 hours, while the total volume of the DeFi space was $12.87 billion.

Related Article | Ukraine Is Better ‘Armed’ Than Russia In Crypto Adoption As War Breaks Out

Crypto Market Hemorrhages

The price of Bitcoin as of this writing has plunged to $34,852.90, down 6.48%, while the price of Ethereum is at $2,343.16, down 12.02%.

Coins such as Cardano lost 10.88% of their value, and Avalanche (AVAX) was down 12.27%.

As of yesterday, Polkadot (DOT) price dropped by 7.26%, while Litecoin (LTC) shed 7.98%, Memecoin Shiba Inu (SHIB) fell 7.28%, and Dogecoin (DOGE) retreated by 9.88%.

BTC total market cap at $667.125 billion in the daily chart | Source: TradingView.com
Wrapped Bitcoin Supply Stagnant

According to research from cryptocurrency financial intelligence service CoinMetrics this week, Wrapped Bitcoin’s supply increase has stalled since December of last year.

Ethereum tokens backed by Bitcoin are known as “wrapped bitcoins.” BitGo’s multi-signature wallet holds all BTC.

Wrapped Bitcoin accounts for around 1.4% of the entire Bitcoin supply of over 19 million units.

Decentralized exchanges and lending protocols are employing 66% of the 263,000-plus tokens locked up in smart contracts.

Between January and December of 2021, the number of WBTC in circulation more than quadrupled but has since remained stable at about 260,000 units.

Related Article | Bitcoin Price Nosedives As Russian Missiles Strike Ukraine’s Cities

DeFi Industry Not Spared In Crypto Market Onslaught

The DeFi industry is seeing a similar trend. The total wealth locked in decentralized finance protocols had dropped below $200 billion, down from about $251 billion on December 27, 2021.

Crypto Crisis Worsens as Russia Invades Ukraine

Russian President Vladimir Putin said the operation is in reaction to Ukraine’s alleged threats in a live television speech.

According to Putin, Russia has no intention of attacking Ukraine, but he did.

The World Reacts In Anger

An assault on Ukrainian cities that U.S. President Joe Biden characterized as “unprovoked and unwarranted” elicited condemnations around the world.

Russia’s invasion on Ukraine has not only jolted the broader crypto market, but the global financial markets as well.

Meanwhile, in the face of the ongoing Ukrainian crisis, cryptocurrency has failed to act as a substitute for gold as a safe-haven investment option, some analysts said.

Since July 2020, gold has traded at some of its best levels since Russia’s attack on Ukraine.

Featured image from Blockworks, chart form TradingView.com

Meet The Two Alleged Bitfinex Hackers: Ilya Lichtenstein and Heather Morgan

The recovery of the stolen BTC from the 2016 Bitfinex hack was the news of the day.  That story’s protagonists, though, they’re legends in the making. You can already tell that Ilya Lichtenstein and Heather Morgan will live forever in meme form. The story is so unlikely that many people in the Bitcoin community are doubtful that it happened as reported. 

Related Reading | Bitcoin Stolen From Bitfinex Hack Moved For The First Time In Five Years

Could this tech entrepreneur and this writer/ rapper have hacked a cryptocurrency exchange? Or are they just the money launderers for a bigger operation? And, did they really save the private keys to billions in BTC on the cloud? Or were they set up? Is law enforcement playing tricks on the public or are they the heroes of the day? 

Imagine being a hacker (or money launderer) and keeping the unencrypted private keys to $3.5billion of #Bitcoin in an online account linked to your name

Mind blown 🤯

— Alistair Milne (@alistairmilne) February 8, 2022

We can’t answer those questions at the moment. What we can do is explore the Bitfinex hackers’ social media to get a sense of who they are. But first, a summary.

What’s The Bitfinex Hack All About? And, Why Is It Relevant Now?

The “Statement Of Facts” available at the justice.gov website does a good job setting the stage: 

“In or around August 2016, a hacker breached Victim VCE’s security systems and infiltrated its infrastructure. While inside Victim VCE’s network, the hacker was able to initiate over 2,000 unauthorized BTC transactions, in which approximately 119,754 BTC was transferred from Victim VCE’s wallets4 to an outside wallet (Wallet 1CGA4s5 ). At the time of the breach, 119,754 BTC was valued at approximately $71 million. Due to the increase in the value6 of BTC since the breach, the stolen funds are valued at over $4.5 billion as of February 2022.“

That money ended up in a Bitcoin address associated with Ilya Lichtenstein and Heather Morgan, but notice that law enforcement never says they’re the Bitfinex hackers. In fact, the couple has only been charged with money laundering. But, what’s the story here? Our sister site Bitcoinist does a good job thickening the plot: 

“The suspects were arrested in Manhattan, New York. Deputy Attorney General Lisa Monaco called the arrest, one of the largest in terms of financial seizure in history.

In that sense, the government official stated that Bitcoin and cryptocurrencies are not a “safe haven” for criminals. The statement contradicts others made by public officials, such as Senator Elizabeth Warren, which have emphasized the alleged use of crypto in criminal activities. Monaco added:

“In a futile effort to maintain digital anonymity, the defendants laundered stolen funds through a labyrinth of cryptocurrency transactions. Thanks to the meticulous work of law enforcement, the department once again showed how it can and will follow the money, no matter what form it takes.”

Imagine sitting on $4,000,000,000 in stolen bitcoin, knowing you're being hunted by nation states, and deciding that NYC is a smart place to hole up.

— Jameson Lopp (@lopp) February 8, 2022

Who Is Dutch Ilya Lichtenstein?

Reportedly, Ilya Lichtenstein is a tech entrepreneur and YCombinator alum. In his Twitter, he defines himself as a “Human angel investor, web3 developer, serial entrepreneur.” In his most crucial tweet, Dutch criticizes a New York Magazine article by saying, “Oh god no. So many words about posering on Twitter, almost nothing about how to secure your keys, send a transaction or get a Defi loan.”

Oh god no. So many words about posering on Twitter, almost nothing about how to secure your keys, send a transaction or get a Defi loan. @atsaraharrison Why??? https://t.co/vTU7w7xfsm

— Dutch Lichtenstein (@unrealdutch) November 30, 2021

Does that seem like the Bitfinex hacker to you? Or, more importantly, does that seem like a person who would store his private keys in the cloud? We wouldn’t know. However, the justice.org report says:

“On January 31, 2022, law enforcement gained access to Wallet 1CGA4s by decrypting a file saved to LICHTENSTEIN’s cloud storage account,8 which had been obtained pursuant to a search warrant. The file contained a list of 2,000 virtual currency addresses, along with corresponding private keys. Blockchain analysis confirmed that almost all of those addresses were directly linked to the hack.”

Bitfinex hackers… LOL… yeah sure pic.twitter.com/rFKwm3Eico

— Psychedelic El ₿arto (@PsychedelicBart) February 8, 2022

In any case, in an article titled “Rethinking the Ethereum Wallet for Mass Adoption,” in the “People are terrified of hackers and malware” section, Ilya Lichtenstein says:

Related Reading | All Altcoin Innovations Will “Ultimately Benefit Bitcoin”: Bitfinex Whale

“The biggest threat to mass adoption is without a doubt, security. It’s still way too hard to properly secure plain text private keys without making a mistake along the way. We cannot expect mainstream users to be security experts in a world where the most common password is still “123456”. Security needs to be built in to the product by design, not left up the user.”

BTC price chart for 02/09/2022 on Oanda | Source: BTC/USD on TradingView.com
Who Is Heather Morgan AKA Razzlekhan?

Reportedly, Heather Morgan is a successful copywriter who grew her own business without outside investors. On her Twitter page, she defines herself as a “Serial entrepreneur. SaaS Investor. Razzlekhan. Surrealist Artist, Rapper & Fashion Designer with synesthesia. Also Forbes writer.” 

Her most crucial tweet says: “Good guiding compass to live by: How much of a POSITIVE IMPACT does your life have on others, including society & nature?”

Good guiding compass to live by:

How much of a POSITIVE IMPACT does your life have on others, including society & nature?

— Heather R Morgan (rzk.eth) (@HeatherReyhan) January 15, 2022

The reason she’s much more interesting than her husband is her rap alter ego, Razzlekhan. Her videos are not available on YouTube anymore, but you can still listen to the songs on Soundcloud. And, some Twitter users captured clips of the videos before they disappeared:

This is who stole 120k from the bitfinex hack https://t.co/CixE4XLbzj pic.twitter.com/Qm4dBeDq0I

— RSN (@puttinyadown) February 8, 2022

Below, there’s another track. Above, there’s a sample of the couple’s Tik Tok content:

pic.twitter.com/LQCNHUiLEf

— Warren Buckets 🔺 (@shillingbears) February 8, 2022

More interesting yet, though, is Morgan’s career as a Forbes writer. In her article titled “Experts Share Tips To Protect Your Business From Cybercriminals,” the supposed Bitfinex hacker says:

“Companies that didn’t already have distributed teams or work from home policies have struggled to transition to going fully remote amidst the pandemic.

Cybercriminals and fraudsters are taking advantage of this unexpected disruption, leading to a spike in scams and cybercrime.”

Protect your company and clients from cyber crimes. BitGo's Chief Compliance Officer, Matt Parrella, discusses strategies with @HeatherReyhan. Experts Share Tips To Protect Your Business From Cybercriminals via @forbes https://t.co/MaNzge6vKq

— BitGo (@BitGo) June 18, 2020

Wacky music aside, does that sound like a person who would launder money through gift cards registered under her real name? We wouldn’t know, but the justice.org report says:

“Records showed that portions of the $500 gift card were then redeemed through three transactions for personal items via the Walmart iPhone application. Each of the three redemptions were conducted online under MORGAN’s name, using one of MORGAN’s email addresses, and providing MORGAN and LICHTENSTEIN’s home address for delivery.”

What Does The Twitterati Think About The Alleged Bitfinex Hackers?

Bitcoin investor Alistair Milne questions the couple’s Opsec, “Imagine being a hacker (or money launderer) and keeping the unencrypted private keys to $3.5billion of Bitcoin in an online account linked to your name.” Bitcoin security expert Jameson Lopp questions their choice of location, “Imagine sitting on $4,000,000,000 in stolen bitcoin, knowing you’re being hunted by nation states, and deciding that NYC is a smart place to hole up.”

Featured Image: The alleged Bitfinex hackers from this tweet | Charts by TradingView

China Banned Bitcoin Mining. What Happens To Small Hydropower Stations Now?

This China Business News article about hydropower stations will blow your mind. It contains revelation after revelation and clears the situation up. Now that Bitcoin mining is prohibited, who’s consuming that energy? How has the government decision affected private enterprises? Well, you’re not going to believe this.

It all started with this tweet by Chinese journalist Colin Wu.

The first paragraph of that article clears up what Colin Wu’s first tweet’s all about. Namely, that in the “largest second-hand trading platform, private hydropower stations are being sold in large numbers.” Why is that? Well…

In the power industry, a hydropower station is sometimes regarded as a tireless money printing machine. But after ten years of investing in a small hydropower station in Sichuan, Zhang Huifa decided to sell the power station for more than 60 million yuan on the second-hand trading platform Xianyu.

It’s mind-blowing that China has a second-hand trading platform that sells whole hydropower stations, but that’s neither here nor there. The plants are “mainly distributed in Sichuan, Guangxi, Gansu and Yunnan.” Both Sichuan and Yunnan were Bitcoin mining hubs, according to Nic Carter’s report. The reason all of this is happening is that “the huge initial investment and long return on investment often pose huge challenges to investors.” 

Related Reading | Bitcoin Hash Rate Goes On Death Spiral Post China’s Crackdown On Miners

Apparently, many of the owners had to take out loans. A decade later, in order to finish paying them, they have to sell the power stations. Or at least that’s what the article tries to convey. 

Abandonment Of Electricity

According to the article, the heyday of private power plants in China was the beginning of the century. Investors built thousands of hydropower stations because they saw them as a constant cash cow. For their part, the regions nearby saw them as a sign of progress and a solution to their energy problems. 

However, with the gradual surplus of electricity in China in recent years, the electricity generated by hydropower stations is often destined to being abandoned (commonly known as “abandonment of electricity”)

Now, Google did most of the translations. So, maybe the phenomenon is not “commonly known as “abandonment of electricity” in other areas of the world. However, the fact remains: Bitcoin mining tends to go where there’s surplus energy available, as our sister site Bitcoinist already told you. The reason for that is simple: energy is cheaper in those areas.

BTCUSD price chart for 07/07/2021 - TradingView

BTC price chart on FTX | Source: BTC/USD on TradingView.com

Are They Selling Hydropower Stations Due To China’s Ban On Bitcoin Mining?

According to China Business News, nothing could be further from the truth:

Some people have linked this selling behavior to the ongoing rectification of virtual currency “mining” operations. Many small hydropower stations have indeed benefited from “mining”, but the sellers contacted by the CBN reporters all stated that they had their own reasons for the sale.

To prove this, they go into the numbers. In 2011, this one plant sold all the power it generated to the State Grid. 

But in 2016, the operator built a Bitcoin “mining” plant near the power station. He rented it out to companies that came to Sichuan to “mine.”

After that, the wind shifted and the tables turned:

In 2016, the power station’s electricity revenue from the State Grid was 4.6 million yuan, and the electricity revenue from Bitcoin mining companies was 1.8 million yuan. However, by 2018 the two numbers turned into 2.7 million yuan and 4.1 million yuan respectively.

Losing all of that revenue is reason enough to sell, and that was Colin Wu’s interpretation of the situation. However, the article’s subjects offer another perspective:

Zhang Huifa said that the main reason for the sale of the small hydropower station was the difficulty of capital turnover in the real estate sector he invested in. Li Chengming said that the reason for the sale of the small hydropower station was that he did not want to continue taking care of it, even though the hydropower station produced a stable income of hundreds of thousands of yuan per year.

But, are they telling the truth?

The Human Side Of Hydropower Stations

The article does a great job selling the story. They immediately explain the psychology and the mental state of its subjects in a way that makes the reader identify with their situation:

They are all in their 50s and 60s and need to return home to look after their families. The younger generation prefers to go to big cities. No one wants to go to the deep mountains and old forests where these small hydropower stations are located.

And to top it all off:

“Many small hydropower stations generally require only one employee to be guarded. Staying in that kind of place all the year round can make a person feel very lonely.” Some of them said, “You don’t know how to deal with the sound of running water every day. Someone say something!”

That sounds terrible. A question arises: What’s the article’s game? Are they trying to make sure those private hydropower stations don’t sell? Or… is this some kind of reverse psychology play?

The Revelation: They Might Be Trying To Get Rid Of These Hydropower Stations!

The article finishes with a bomb that explains everything:

According to 2020 statistics from the Sichuan Provincial Department of Water Resources, there are 5025 small hydropower stations in Sichuan. Out of those, 4774 are involved in rectification and decommissioning. It’s estimated that 1091 will be decommissioned and 3683 will be rectified. 

There’s a reason for that:

“Hydropower stations have always been one of the important factors restricting the ecology of Sichuan’s rivers.” Wang Hua, deputy director of the Sichuan Provincial Water Resources Department, said in 2020

It’s possible that the government is trying to get rid of those plants. That would explain the article’s tone, it seems like it was trying to get investors to stay away from those hydropower stations. In light of this, China’s ban on Bitcoin mining could just be part of an even bigger play. They’re serious and methodically shaking things up over there. 

Related Reading | Pakistan to build Bitcoin mining farms in pilot program

What could be their end-game? Is China just trying to go carbon neutral and repair the original flow of the rivers? Or is there something else at play here?

Featured Image by Gary Yost on Unsplash - Charts by TradingView

Litecoin Foundation’s Project Director Makes The Case For LTC’s Network Effect

Old faithful Litecoin turns 10 years old on October 7th. After a decade of activity, it’s still going strong. A faster and lighter Bitcoin fork, LTC’s objective has always been to be the silver to BTC’s gold. And this crazy year of high fees, Litecoin might’ve proved its worth. For many, it became the instrument of choice for sending money around without paying an exorbitant fee.

Our sister site, Bitcoinist caught wind of this development and reported:

Data compiled by @MASTERBTCLTC shows the number of Litecoin transactions is just under 75% of that of the number of Bitcoin transactions.

“Litecoin transactions are 75% of the total bitcoin transactions.
When will litecoin transactions flip bitcoin transactions?
Sometime in 2021 I predict.
227k BTC vs 168k LTC transactions.”

More significantly, @MASTERBTCLTC suggests this could be the start of an uptrend leading to a flippening in transaction count sometime this year.

We wouldn’t go that far, but it definitely is an interesting development that deserves further study. Luckily for us, Litecoin Foundation’s David Schwartz broke the case for its “network effect + ever growing status over the near past 10 years.”

Related Reading | Grayscale Loads Up On Litecoin, Dumps BTC & Other Coins, But Why?

Litecoin’s Transactions Are Cheaper And Faster 

This is by design. The cheaper and faster transactions are the reason for Litecoin’s creation. However, the case hereby presented is that LTC “has changed from mostly a method to transfer BTC during peak cycle to one of more ‘regular’/payment” and transaction usage. The asset seems to be changing.

The Litecoin project boasts a decade of name recognition, it shows resilience and adaptability. While no blockchain is as busy as BTC’s, the LTC blockchain is far from a ghost town. It’s bursting with activity and ready for your transactions. There’s also proven liquidity in the market. Litecoin is basically a pristine asset.  

Back to the metamorphosis, here we can see that “Transactions are well above average & growing exponentially each cycle.” Does that mean that Litecoin is becoming a payment instrument?

The “comparable growth rate in overall, new & non-zero addresses with both” ETH and BTC is an interesting statistic. And the point about the lack of headlines LTC receives is well taken.

LTCUSD price chart for 06/07/2021 - TradingView

LTC price chart on Kraken | Source: LTC/USD on TradingView.com

Is LTC Undervalued? Is This a Buying Opportunity?

Obviously, David Schwartz has a vested interest in Litecoin. However, the case he presents has merits. A ten-year-old coin with new use cases is not something we face every day. In any case, as long as you know that this isn’t financial advice of any kind, we can keep exploring the case and doing our own research.

So, Litecoin is part of many financial instruments including a Grayscale Trust. Is the price reaction to that fact lagging or non-existent? Also, there’s a halving on the horizon and the always faithful hard cap or fixed supply. Plus, as we said in the intro, the number of transactions keeps growing. 

The picture Schwartz paints sure it’s interesting. The tide may be turning for Litecoin.

The last point is pretty compelling

LTC also benefits from developments done by Bitcoin devs, requiring less full time direct devs unless necessary and less github activity.

By not trying to stand in Bitcoin’s spot and always knowing its place, Litecoin gets to benefit from all the incredible developments the Bitcoin community offers to the world. The activity around Bitcoin’s chain is second to none. Litecoin is a direct beneficiary of that. 

Related Reading | New Litecoin All Time Highs Are Still In The Cards

People used to say Litecoin was redundant but, if Schwartz is right, this classic coin might’ve found its lane. A decade later. What an inspiration. Now the question is, will the new status as a transaction asset reflect on LTC’s price? 

Featured Image by Alina Grubnyak on Unsplash - Charts by TradingView

Top Economist Calls Bitcoin As Legal Tender “Stupid”. Here’s Why He’s Wrong.

Let’s not kid ourselves, a person like Steve Hanke has enormous incentives to defend the status quo. He’s benefited tremendously from it. It could be argued that his livelihood depends on Bitcoin failing. A project to make it legal tender in any country goes directly against Hanke’s interests, and it’s no wonder he spoke against it. The insult was over the line, though.

We´re going to take the higher road and elegantly answer all of his points. The tweet in question was this one:

Is Bitcoin A Store Of Value?

Who decides this? The people. If one person uses an asset to safeguard his wealth, then it’s a store of value. The question then is, is Bitcoin an effective store of value? Well, considering it’s the only commodity in the history of the earth that presents absolute scarcity, it’s probably a safe bet. Make no mistake, though, it’s still a bet. The Bitcoin experiment is an ongoing process and nothing is set in stone.

Related Reading | Why Bitcoin Declared Legal Tender Could Have Major Implications Beyond El Salvador

Scratch that, one thing is set in stone. There will only ever be 21 million bitcoins. The supply is fixed, so if the demand increases, the price will go up. It’s as simple as that. To add credibility to the argument, let’s quote Saifedean Ammous’ “The Bitcoin Standard”:

Until Bitcoin’s invention, all forms of money were unlimited in their quantity and thus imperfect in their ability to store value across time. Bitcoin’s immutable monetary supply makes it the best medium to store the value produced from the limited human time, thus making it arguably the best store of value humanity has ever invented. To put it differently, Bitcoin is the cheapest way to buy the future, because Bitcoin is the only medium guaranteed to not be debased, no matter how much its value rises.

Did you know that 40% of all US Dollars that have ever existed were printed in the last twelve months? That’s what debasement looks like. And the whole world is feeling its effects. 

Is Bitcoin A Medium Of Exchange?

Our friend Steve Hanke was answering Paraguay’s congressman Carlos Rejala but, as you probably know, the first country to approve bitcoin as legal tender was El Salvador. This is not a coincidence, since “a real village with real Bitcoin uses in daily life” is right there in El Salvador. 

The Bitcoin Beach project is also the main real-life use case for the Lightning Network. If there’s a place in which small Bitcoin transactions are an everyday thing, it’s this one. As Nasdaq informed last year, when the project was still developing:

In the flagship Bitcoin village of El Zonte, for example, you can use bitcoin to pay for a haircut, get your nails done and chow down on some local dishes (like some delicious pupusas). Soon, you’ll even be able to buy a cup of coffee with it and go to the doctor’s office for a checkup.

If there’s any doubt that Bitcoin Beach was the inspiration for El Salvador’s historic move, Stephan Livera paraphrases what President Bukele said on Clubhouse: 

So yeah, Bitcoin is a proven medium of exchange with real-life use cases. We could include the incredible amount of Bitcoin transactions that the virtual world sees every day, but there’s no need.
BTCUSD price chart for 06/09/2021 - TradingView

BTC price chart on Bitbay | Source: BTC/USD on TradingView.com

Is Bitcoin A Reliable Unit Of Account?

Let’s admit it, Bitcoin’s price is volatile. Why is that? Let’s quote “The Bitcoin Standard” once again:

As it stands, given that Bitcoin constitutes less than 1% of the global money supply, large individual transactions in Bitcoin can have a large impact on price, and small variations in demand can cause large swings in price. This, however, is a feature of the current situation where Bitcoin as a global settlement network and currency is still a tiny fraction of global settlement payments and money supply.

Bitcoin is still in its infancy. You can’t ask a 12-year-old child to behave like an adult. What does it need to grow? Nurture. And since it IS a currency, nurture is equivalent to widespread adoption. This is exactly what’s happening, with all of these countries considering emulating El Salvador in making Bitcoin legal tender. 

Related Reading | Time To Pay Attention: Bitcoin Indicator Behavior Mimics Historic Rally

If Bitcoin becomes the global reserve currency of the world, volatility won’t be a problem. And the whole planet will be a level playing field because one country won’t have the immense privilege of issuing the global reserve currency. And debasing it at will.

What If Elon Musk Is Just Making “Noob” Crypto Mistakes?

Is Elon Musk playing 4D chess or is he just making rookie mistakes? It’s easy to judge the unfortunate and inaccurate message those tweets contained, but, what if Elon simply doesn’t know better? What if the billionaire doesn’t have a master plan and instead is just learning right in front of our eyes? It’s certainly a possibility. At least that’s what TV personality and Bitcoin advocate Max Keiser thinks:

Even though Mr. Musk has been around cryptocurrencies for a long time, he’s only been into cryptocurrencies for a few months. Luckily for us, our sister site Bitcoinist is on the case from the very beginning. Let’s examine Elon’s history with blockchain-technology-related projects and try to figure out his master plan or lack thereof. It’s the least we can do.

Could Elon Musk Be Satoshi Nakamoto?

Three years ago, the billionaire had to respond to the world:

“Not true. A friend sent me part of a BTC a few years (sic), but I don’t know where it is,” he wrote in response to a recent blog post whose author, Sahil Gupta, said Musk was “probably” Nakamoto.
Satoshi could be a collaboration of Musk, Nick Szabo, and Hal Finney. But it seems more likely that Elon read their research papers, took inspiration from them, and built the product solo,” Gupta had mused.

Even though back then Musk had nothing to do with cryptocurrencies, he was in the same orbit. And the crypto community tried to pull him in using various tactics.
DOGE price chart for 05/27/2021 - TradingView

DOGE price chart on Bitfinex | Source: DOGE/USD on TradingView.com

The CEO Of Dogecoin

Two years ago, the Dogecoin community crowned him CEO. As you might imagine, the coin registered its first Elon-pump: 

The effect on Dogecoin was immediate and decisive: as of press time, the altcoin had made daily gains against the US dollar of almost 35 percent.

DOGE/USD currently trades around $0.0033, its highest since early November.

Elon Musk quickly gained the attention of the cryptocurrency community on Twitter, with traders extrapolating potential endorsement of the wider industry beyond DOGE.

And even though Musk immediately resigned to the Doge CEO position, the relationship between the billionaire and the joke-cryptocurrency would prove to be stronger than anyone thought.

Related Reading | Goldman Sachs Exec Says Much Nope To Firm After Making Millions On Dogecoin

Elon Musk’s Initial Views On Crypto

A year ago, the billionaire finally spoke publicly about cryptocurrencies in his own “Third Row Tesla Podcast”. Bitcoinist reported:

He likes the concept and thinks that it is ‘clever.’ However, he also has concerns regarding their role in making illegal transactions. He said,

There are transactions that are not within the balance of the law. And there are, obviously, many laws in different countries. And, normally, cash is used for these transactions. But, in order for illegal transactions to occur, cash must also be used for legal transactions. You need an illegal-to-legal bridge. That’s where crypto comes in.

Oh, the “criminals use Bitcoin” argument. The first question every noob encounters. We hope that Elon already figured out that every transaction made stays engraved in the blockchain forever. And that fact is not ideal for criminals, as the DarkSide saga proves.

Tesla Adds Bitcoin To Its Balance Sheet

A mere four months ago, Bitcoin got the Elon-pump. His company was in the process of acquiring BTC and:

Elon Musk’s addition of “#Bitcoin” to his Twitter bio and potential buying activities undoubtedly played a huge role in this rally.

The coin went from $32K to $38K, and then it was up-only for a while. A few months later, Elon answered “true” to a tweet about Bitcoin and renewable energy. Bitcoinist reported:

An April tweet that proves that Elon had been thinking about the subject. Not only that, he agreed with Jack Dorsey when he made this statement: “Bitcoin incentivizes renewable energy.” Talk about a smoking gun.

A few weeks later, Elon announced in an infamous tweet that Tesla wasn’t accepting more Bitcoin payments for environmental concerns. And all hell broke loose. 

BTC price chart for 05/27/2021 - TradingView

BTC price chart on Gemini | Source: BTC/USD on TradingView.com

Maybe Elon Musk Has Not Done His Homework?

It’s hard to believe that Tesla invested more than a billion dollars in Bitcoin without researching the environmental part of the equation. But then again, while defending his position, Elon made clear that he doesn’t know the difference between the nodes and the miners:

While the fact that most miners were in China is not ideal, the nodes control the Bitcoin network. And those are spread all over the world. And anyone could start operating one by following a few easy steps, even you.

And then, just three weeks ago, he said the darndest thing about Dogecoin. Bitcoinist reported:

With his distinctive sense of humor, Musk finds it ironic that this nascent class, with the potential to be the world’s reserve currency, to be spearhead by a project that started as a joke. Musk said:

Which one it is going to be? Maybe it’ll be multiple, it should be considered speculation at this point. The point is that Dogecoin was invented as a joke, as essentially to make fun of cryptocurrencies. Fate loves irony, what it would be the most ironic outcome? That the currency that was invented as a joke, in fact becomes the real currency. To the moon!

That’s cute! Nevertheless, Doge fundamental characteristics make it an impossible outcome. The supply is unlimited and the system mints an absurd amount of new coins every day. If the world wants a perpetual-printing machine that devalues the holder’s coins by the minute, it already has the Fiat system.

And, mind you, the perpetual printing was the main part of the Doge joke. It seems that the punchline flew over Elon’s head.

Related Reading | Binance Burns Record $600 Million BNB In Its 15th Quarter

So, Could Elon Be Just Making Noob Mistakes? 

When a great mind accompanied by a big ego encounters Bitcoin, it immediately gravitates towards trying to fix it. Elon is not the first and will not be the last. Every great Bitcoin thinker out there had an Altcoin phase. They all thought that maybe a new idea had come along that made Bitcoin obsolete. 

Eventually, they all realize that Bitcoin is more of a miracle than a technology. That the economic incentives are right where they belong, and that it’s a machine with the potential of improving the world for everyone.

Maybe Max Keiser is right and Musk just isn’t there yet. 

If that’s what’s happening, we can probably count on his genius to figure all of this out.

Let’s hope he does it sooner than later.

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Reliving The FUD That Led To This Week’s Bitcoin Crash

It is the worst of times. It is the best of times. It is the age of fear, uncertainty, and doubt. Nevertheless, Bitcoin’s fundamentals remain intact. The project’s value is still there, despite the disastrous drop in price. It was all going so well. How did we get here? Actually, there are a lot of valid reasons. Let’s review all of the causes that lead to this FUD.

As you know, everything started through Elon Musk’s fingertips…

Tesla’s “Environmental Concerns”

When Bitcoin was on its way up, Elon’s company gave it the push it needed. Tesla announced ownership of $1.5B worth of Bitcoin that, apparently, remain on its balance sheet. The crypto community celebrated the move, profits followed. The coin’s legitimization seemed to take a step forward. And then…

Inexplicably, Tesla announced they were not accepting BTC as a form of payment anymore. Despite wild speculation, no one knows what happened. In his tweeted announcement, Elon cited “rapidly increasing use of fossil fuels for Bitcoin mining” as the reason. Few people inside the crypto community believed it. Everyone outside of it did. And even though Tesla clarifies they didn’t sell any of their Bitcoin, the FUD set in. And retail investors started selling.

If you want to learn about Elon’s real views on the matter and about everything the crypto mining industry is doing regarding green energy, head over to Bitcoinist, our sister site.

Related Reading | Bitcoin TA: Here’s What Could Trigger A Bullish Reversal Above $40K

China’s Tightening Up Its Bitcoin Policies

This generated lots of FUD. The People’s Bank of China seemed to announce clear and unfavorable rules regarding cryptocurrencies. Yahoo Finance reports: 

“This is the latest chapter of China tightening the noose around crypto,” said Antoni Trenchev, managing partner and co-founder of Nexo in London, a crypto lender.

Virtual currencies should not and cannot be used in the market because they’re not real currencies, according to a notice posted on the PBOC’s official WeChat account. Financial and payments institutions are not allowed to price products or services with virtual currency, the notice said.

Nevertheless, as with most things on this list, the announcement didn’t amount to anything specific yet. 

BTC price chart on Bitstamp | Source: BTC/USD on TradingView.com

The US OCC Turns Its Eye To Cryptocurrencies

The newly announced Acting Comptroller of the Currency, Michael Hsu, revealed that the agency he presides, the Federal Reserve, and the FDIC are reviewing their policies on cryptocurrencies. This isn’t necessarily a bad thing, it might lead to clearer laws and stronger governmental support. Nevertheless, the FUD doesn’t mind that fact. 

Hsu’s statement to the Committee Of Financial Services reads:

Shortly after I started, I requested a review of key regulatory standards and matters pending before the agency. Those items include the 2020 Community Reinvestment Act (CRA) final rule and associated NPR related to performance benchmarks, interpretative letters and guidance regarding cryptocurrencies and digital assets, and pending licensing decisions. For each, the review is considering a full range of internal and external views, the impact of changed circumstances, and a range of alternatives.

Binance Under Investigation

The US government turned its eye towards Binance. Apparently, blockchain investigator firm Chainalysis found a pattern. It showed a considerably higher percentage of funds from criminal enterprises flowed through Binance, compared to other exchanges. Bitcoin Magazine reports:

The world’s largest cryptocurrency exchange, Binance, is under investigation by the U.S. Department of Justice and Internal Revenue Service (IRS), according to a report from Bloomberg.

“As part of the inquiry, officials who probe money laundering and tax offenses have sought information from individuals with insight into Binance’s business.”

Even though it’s just an inquiry and nothing might come of it, the FUD it generated within the community cannot be ignored. 

Related Reading | Market Sentiment Hits Low As Binance Has Largest Bitcoin Inflow Ever

India almost bans cryptocurrencies

A total crypto prohibition was on the table once again, but India’s lawmakers turned the ship at the last minute. Word on the street is that they’ll pass clearer regulatory laws instead. The Economic Times reports:

The central government may form a fresh panel of experts to study the possibility of regulating cryptocurrency in India, three sources privy of the discussions told ET. This comes amid the prevailing view that the recommendations by a committee headed by former finance secretary Subhash Garg in 2019 for a blanket ban on these assets had become outdated.

This new rumor arrived yesterday, but the FUD that a total ban inspires was around for a while. 

Is This A Coordinated Attack? Or Is The World Just Going Nuts?

We can’t confirm or deny this was a coordinated attack on Bitcoin and cryptocurrencies in general. Maybe the upper class, transnational corporations, and high rollers of all kinds want to buy your BTC at a discount. Market manipulation is as old as markets. But, maybe, this perfect storm of bad news is what happens when the best performing asset that the world has ever seen takes over the world’s headlines. All eyes turn to it, and all fingers start poking.

However…

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