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A hardcore evangelist who loves Bitcoin but hates cryptocurrencies

Bitcoin advocates have sought new adopters since the digital currency was invented in 2008 by a mysterious person known only by the pseudonym Satoshi Nakamoto. At the time, Bitcoin proponents were disillusioned with the mainstream financial system and wanted to create a form of cryptocurrency that could be exchanged without banks or other intermediaries. With supply limits built into the underlying code, Bitcoin was supposed to provide a hedge against inflation.

Many subsequent cryptocurrencies lacked these features. New coins are often issued by a group of founders who have significant control over circulation. This is a dynamic that can replicate the centralized structure of traditional finance.

“Bitcoin is decentralized, digitally scarce money. Everything else is centralized,” said crypto podcaster and outspoken Bitcoin Maxi Jimmy Song. “There is a big difference between a censorship-resistant self-sovereign currency and a gambling vehicle.”

A former McKinsey consultant, Mr. Clipsten became interested in cryptocurrencies in 2017 when a new currency wave was born and prices skyrocketed. He bought some bitcoin, but also a new experimental token.credit:Megan Miller/New York Times

Maxis’ utopian vision of a stable, decentralized yet universally accepted alternative currency is far from reality. Bitcoin’s price is volatile and investors often treat it as a kind of risky stock, no different than stocks of companies traded on the tech-heavy Nasdaq index.

Few people use Bitcoin for regular transactions. last year, El Salvador introduces Bitcoin as its national currency, but that project was a spectacular failure. Validating Bitcoin transactions, a process called “mining” because participants are rewarded with digital coins, consumes a lot of energy. Researchers estimate that bitcoin mining could emit as much as 65 megatonnes of carbon dioxide per year, comparable to Greece’s annual emissions.

Former Securities and Exchange Commission official John Reid Stark said of Bitcoin: “No intrinsic value.”

Still, Maxis seizes the recession to argue that Bitcoin is the only cryptocurrency worth taking seriously. Yes,’ read a recent headline Bitcoin magazine.

“If someone points out the risks they are taking, if they are otherwise healthy, they could cause bank runs or be accused of being trolls. “It’s kind of hard to rationalize this before the crash happened. But now it happened.”

Thaler and others at Maxis have sometimes complained that Bitcoin is underrepresented in Washington.

Some of the crypto advocacy work in Washington is funded by companies that offer cryptocurrencies built on alternative verification systems that require less energy to maintain. In April, billionaire co-founder of cryptocurrency company Ripple, Chris Larsen, announced that he would donate $5 million to a marketing campaign calling on Bitcoin to abandon its energy-intensive mining infrastructure. safe and fair.

Bitcoin proponents are now building their own political machinery. Earlier this year, Bitcoin advocate David Zell launched the Bitcoin Policy Institute, a think tank in Washington to advance a pro-Bitcoin agenda. The Institute claims that concerns about Bitcoin’s energy consumption are exaggerated.

“What we want to say is that Bitcoin has a set of properties that make it unique,” ​​Zell said. “These differences are so stark that it is useful to draw them out when we have serious policy discussions about the industry.”

Bitcoin maximalists consider Bitcoin to be outside the crypto market.

Bitcoin maximalists consider Bitcoin to be outside the crypto market.credit:Getty

Klippsten traces his Bitcoin maximalism to a chance encounter five years ago. (He considers the term “maximalist” derogatory and prefers to call himself a bitcoiner.) Former McKinsey consultant Crippsten said 2017 saw the birth of a new currency wave. , became interested in cryptocurrencies when prices soared. He bought some Bitcoin, but he also bought a new experimental token.

“I was really preoccupied with all this other stuff,” he said.

At the October conference, he met Bitcoin podcaster Song and was convinced by his pitch. Klippsten has also come to believe that many new currencies are unregistered securities, more like stocks that people trade than currencies used in trading. (Regulators have declared Bitcoin to be a commodity, not a security.)

In 2019 Klippsten launched Swan Bitcoin. It works with wealthy families, businesses and retailers to set up Bitcoin investment plans, often through automated buying programs. The company offers customized financial advice and charges a 1% fee to execute bitcoin purchases, he said.

According to Kripsten, the business caters to Bitcoin aficionados. Swan’s customers spent twice as much on bitcoin in June, the month after the market crash, as they did in April, the month before it. Several customers said they bought $5 million in bitcoin in June.

Klippsten automatically invests a portion of his savings in Bitcoin each day, a process known as dollar cost averaging. He kept buying at the same rate throughout the recession.

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However, if he received an unexpected benefit, he said, “I would argue very loudly with my wife to try to put most of it into bitcoin.”

This article was originally new york times.

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A hardcore evangelist who loves Bitcoin but hates cryptocurrencies

Source link A hardcore evangelist who loves Bitcoin but hates cryptocurrencies

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