The last crypto post
Let’s go back to the 1970s, when the infrastructure of the internet we use today was being formalized. In those days, most networks were localized, contained in single buildings, and had different, competing network protocols.
In order to expand the network to encompass the world, standards had to be set at the lower, base layers of the system. That’s when TCP/IP came out on top of the competition. Transmission Control Protocol and Internet Protocol, the two protocols that define the pathing and data transfer of the internet, have not fundamentally changed since 1983.
When you search for a website in your browser, your computer makes a request of a server, located somewhere else in the world, and receives an answer. The requests and answers are formulated as little packets of data, organized with headers and footers, and routed along ports for fastest transmission. TCP/IP is the part of the system that defines this act.
Forget everything you know about so-called cryptocurrency - what it really is, is an update to TCP/IP. An evolution, really.
Well, at least BitCoin is. The others serve different purposes - money laundering, passion projects, scams, dark web drug dealing, anonymity, etc. But they’re almost all useless - 99.9% of them are like digital pet rocks, which is why they’re all crashing and burning now. Most are captured by ideology and have no value to the common person or entrepreneur. Only utility will survive now - the most useful wins.
People talk about the different cryptocurrencies as if they will all co-exist, but that makes no sense at all if you really think about it. That’s like having multiple internets. The reality is that only one will survive over the long term. I have my predictions but I’m trying my best not to evangelize. All I can say is that you have to be resourceful and erudite, and the idea of holding an object that goes up in price for no reason is counter to all that is good and true in this world.
There is a word for things that go up in value over time - assets. Most assets depreciate, but some, like my Pokemon cards, go up. But thinking about BitCoin or Ethereum as an asset is also silly - what restaurant accepts Pokemon cards as payment?
There’s another word for things that you hold for a higher value over time - securities. Securities, such as stocks and bonds, promise a return on investment. But you can’t spend a security, and you have to be investing in something that returns some value. Thus far, most people have been investing in coins like Ethereum as if they are indices of the creative potential of its users. For example, my shares of Apple go up when Apple sells more products. This is how most people who consider themselves above the rabble invest in cryptocurrencies.
But does that make sense really? I ask this question because at this point, amidst the crashing and burning (and I personally don’t believe it will ever go up again, certainly not to where it was), the entire narrative of the ‘cryptocurrency industry’ should be thrown out the window. I really don’t keep up with the news and I’m freejazzing so I’m not going to link to anything, but it should be crystal clear by now that any idea of:
Hedge against inflation
Decoupled from regular financial system
Empowering the little guy
is complete bullshit. If you need examples, hit me up. And typically, it’s actually more of the worst elements of today’s financial systems but amplified due to absurdity. It’s making people greedy, feeding their worst tendencies.
There’s a final category of things that go up in value over time - commodities. Commodities follow the simple rule of supply and demand. They are the most used, and thusly the most valuable for the human race, though they aren’t particularly expensive. Some of the major commodities are cotton, oil, gas, corn, wheat, oranges, gold, and uranium.
Commodities are the oldest form of financial investing. I believe that BitCoin is a data commodity. It’s like natural gas, for the Internet of Things, or cotton for the Web3. It’s like wheat for the garden of ideation. It’s a thing that has a price determined by utility, and has a very specific use - to transfer data over the internet in a decentralized fashion. Simple as. Well it can get more complicated, but considering we’re over a decade from its invention and few people understand this, we have to keep it Kindergarten.
It’s difficult to write about this stuff because so much of it is dumb, it really makes me upset. People are being taken advantage of, entire industries built on houses of cards, people being lead astray. People are being lied to, people are thinking in the short term. Instead of writing about it and trying to convince people, I will now be demonstrating what to do, and documenting the process. It’s harder than buy the coin and hold, but as an artist it’s the only way forward.
I watched a good interview with my friend John Pitts, a diamond equities trader, who explained that the ‘crypto bubble’ is actually very similar to the South Sea Company Bubble of the 1700s. This was a British company that exported slaves and was given a monopoly to do so by the English Crown. Many, many people, including Isaac Newton who was the head of the Treasury of England at that time, and the king, were invested into this company and thought it was going to the moon. But then they lost it all, and we know for a fact on record that Isaac Newton lost a significant portion of his wealth in this bubble.
Isaac Newton, one of the smartest and most capable people of his century, fell for it. He probably told all his friends to buy into it; he certainly convinced the king. The man who wrote the Principia Mathematica fell for what is in hindsight an obvious scam.
Who else is falling for it today?