One big idea in cryptocurrencies is attempting to achieve decentralization through "governance tokens" whose HODLers can control a Decentralized Autonomous Organization (DAO) by voting upon proposed actions. Of course, this makes it blindingly obvious that the "governance tokens" are securities and thus regulated by the SEC. But even apart from that problem recent events, culminating in "little local difficulties" for Tornado Cash, demonstrate that there are several others.
Below the fold I look at these problems.
Tuesday, May 23, 2023
Nakamoto's goal for Bitcoin was:
What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party.Below the fold I examine how this earliest cryptocurrency story changed.
Thursday, May 18, 2023
This post is a quick shout-out to two excellent pieces documenting the corruption of the venture capital industry:
- Molly White's Narrative over numbers: Andreessen Horowitz's State of Crypto report
- Matt Levine's Crypto Had Its Bank Runs Too
Thursday, May 11, 2023
My immediate reaction to the news of ChatGPT was to tell friends "at last, we have solved the Fermi Paradox". It wasn't that I feared being told "This mission is too important for me to allow you to jeopardize it", but rather that I assumed that civilizations across the galaxy evolved to be able to implement ChatGPT-like systems, which proceeded to irretrievably pollute their information environment, preventing any further progress.
Below the fold I explain why my on-line experience, starting from Usenet in the early 80s, leads me to believe that humanity's existential threat from these AIs comes from Steve Bannon and his ilk flooding the zone with shit.
Thursday, May 4, 2023
|Paul Le Roux|
By Farantgh - Own work
One of the (many) times I have been heckled during a panel on crypto was when I argued that it shouldn’t be thought of as money. The only reason to use it other than for speculation, I said, was to buy drugs on the internet. This was a preposterous idea, the heckler retorted; crypto is used for so much more than that.and ends:
So in a funny way, my heckler was right: crypto isn’t just used for speculating on and buying drugs on the internet: it’s used for much murkier criminal activities, too.Below the fold I discuss the details of the "murkier criminal activities".