Bitcoin tumbled again. Finally, American authorities seem to be awakening for the real problems with bitcoin and other crypto-assets. “The US Treasury announced on Thursday that any crypto transfers worth more than $10,000 must be reported” to the tax administration 1/11 
Obviously, that works only for honest citizens and firms. Importantly, the Treasury text recognises that “Cryptocurrency already poses a significant detection problem by facilitating illegal activity “ The problem is the absolute anonymity they ensure 2/.
There are various types of blockchain technology, open decentralised or permissioned ones. Crypto assets use the forme, and no one can access the true identity of entities transacting in the network using a number and a password only they know. A paradise for criminals.3/
For that reason, I have been puzzled by how American authorities have been condoning the Wall Street embrace of crypto. Suddenly, there are now rumours about other agencies preparing regulations for crypto assets. Still, I think the US will allow crypto to survive as “assets” 4/
When I was in office, in international meetings, Europeans were suspicious of crypto developments, but the Americans wanted the experiment to continue, revealing two of their traits: almost blind trust in new technologies, and that markets innovations are in principle good 5/
The Americans think that if there is already a market and demand is significant, in principle, the State shouldn’t block the innovation. Despite the role played in the 2008-9 crisis by CDOs, CLOs, ABS and securitisations, non-consolidating SIVs, Repos, OTC derivatives 6/
Besides the security reasons, its high energy consumption is also that threatening bitcoin ft.com/content/1aecb2… . “Bitcoin alone consumes as much electricity as a medium-sized European country,” Worse: Bitcoin alone could increase global warning above +2 degrees in 30 years.7/
My recent tweets on bitcoin & its clones having assured their future as “assets” and becoming competitors to gold got some reactions: Gold would be a totally different thing. It’s true that it has marginal industrial uses and serves to make jewellery, but that demand..8/
..could never justify the high price of gold that mostly remains idle in vaults. Gold and crypto, are speculative assets as they don’t generate a regular income stream, and their price depends entirely on buyers believing that they can sell it later at a higher price. 9/
For its fans, crypto-assets compare to gold in that they believe they are durably secure and have limited supply. Younger generations intrinsically trust virtual digital “things” and believe that they, being new, will increase their price faster, providing higher gains. 10/
Gold has the “advantage” of having lasted millennia, benefiting from all kinds of myths and a reputation for being a good hedge against inflation. It´s all based on crowds beliefs and memes (Dawkins). Gold and crypto assets have a price and don´t need an “intrinsic value.”11/11
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