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Cryptocrash… November 28, 2018

Posted by WorldbyStorm in Uncategorized.
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I mentioned during the year, I think, that last Christmas I was at a party where I had a long chat with someone heavily involved in cryptocurrencies. This person was reasonably young, living a life where they had limited access to financial resources and it struck me then as remarkable how they were both literally and figuratively investing so much of themselves in what seemed even then to be a shaky concern.

The news that Bitcoin is now at its lowest level in thirteen months and this on a foot of a near enough continual decline since the peaks reached late last year is beginning to lend substance to the idea that the cryptocurrency boom may be fading away with a whimper. And the following contains a good question:

“The crypto bloodbath continues,” said Neil Wilson, the chief market analyst at Markets.com. “Things looks like they only get worse from here. Where is the incentive to buy? It does rather look like the bottom is coming out of this market.”

That’s the key. In a process of decline there’s no incentive to buy (and keep in mind that other cryptocurrencies are in similar situations). The process requires values to be increasing near enough continually.

Mind you, there’s always one late to the party… this from July:

Despite all the bad news, bitcoin still has its believers, including Steve Bannon. In an interview with the New York Times, the former White House strategist said that he has a “good stake” in bitcoin and is interested in working with entrepreneurs and countries interested in creating their own cryptocurrencies. Bannon may also have ambitions to create a currency of his own. Earlier this year, in a meeting at Harvard University, he apparently discussed creating a new digital currency called “deplorables coin”.

But it’s not just about the money…oh no:

Bannon says he isn’t interested in cryptocurrencies solely for the financial potential; he sees decentralized money as a key component of his political mission. Cryptocurrency is “disruptive populism, it takes control back from central authorities”, said Bannon. “It was pretty obvious to me that unless you got somehow control over your currency, all these political movements were going to be beholden to who controlled the currency … control of the currency, is control of everything.”

In a way it’s a wonderful illustration of the utter contradiction bound up in Bannon and his thoughts. The man who argues for ‘nationalism’ wants currencies entirely detached from nations. And not too many working class people have the disposable income to dabble in this sort of thing.

The piece linked to notes that for portions of the alt-right and Neo-Nazism there’s been quite some interest in crypto-currencies… indeed…

In 2014 Andrew Auernheimer, a neo-Nazi who goes by the name “weev”, wrote on his blog: “I heartily encourage you to consider cryptocurrency, including bitcoin.” And in March 2017 Richard Spencer declared on Twitter that “Bitcoin is the currency of the alt-right.”

One can only hope they put their money where their mouth was this last few years and have remained loyal to this vision.

Meanwhile, it keeps dropping.

Comments»

1. EWI - November 28, 2018

‘Libertarian pyramid scheme exposed as scam SHOCKAH’

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2. GW - November 28, 2018

According to Roubini Bitcoin et al now constitute the biggest Ponzi scheme evs.

However electronic currencies (most currencies are in fact mostly electronic these days) are not necessarily libertarian and deflationary. That was a political choice made by the Bitcoin designer and its operators.

I suggest that a countercurrency to the Euro could be an essential part of the revolt against the Fiscal Pact needed within the Eurozone.

A parallel electronic currency or a federation thereof within the EU would not subject the repressive austerianism of the ECB and the fiscal pact, and could be genuinely democratically controlled for social ends.

And we have Bitcoin I guess to thank that such a currency is now thinkable.

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EWI - November 28, 2018

‘Local’ currencies gave been mentioned before over the past ten years as a way to break the iron grip of the ECB, IMF etc. I’d be interested to hear of any successful implementations of this via digital currency.

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GW - November 28, 2018

I’m thinking larger scale here – you need to invest in democratic management and in technology, especially security. Any currency in which you can’t pay taxes can’t have much of an impact in political economy terms – believe me, I have experience of such projects. So either national or better still transnational in scale.

Imagine if a social democratic tending democratic socialist UK was to offer to trade using a social-euro currency (who’s management committee is tasked with bringing about wealth redistribution and a green economy) agreed by revolting Eurozone members!

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3. Tomboktu - November 28, 2018

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