1/ This clip of @garrytan on Bloomberg is well worth watching because it shows *exactly* how Silicon Valley investors like him either fail to understand or feel threatened by Bitcoin 🧵
2/ Garry is obsessed with dollar profits. In 7 minutes he doesn’t mention improving the world around him a single time. He instead talks about DeFi’s year-over-year returns and NFT sales. In this context says that it’s “unbelievable” that Bitcoin maximalism is still alive in 2021
3/ Garry doesn’t understand (or maybe realizes but hates) that Bitcoin is about separating money from state, giving people financial freedom, and ending insider monetary deals and central banking. BTC isn’t about making a trade in dollar terms, it’s about replacing the dollar.
4/ Garry describes Bitcoin maximalists as “religious” — a point that he hammers throughout the interview. This is a frequent altcoiner tactic to try and shun people who choose to work on Bitcoin-only for philosophical reasons as being somehow crazy, fringe, stupid, or inadequate.
5/ The great irony of course is that you can run Bitcoin at home cheaply with zero faith. You can verify everything with your own node. With every other cryptocurrency you must have faith in the administrators of that system. You must hope they make good decisions.
6/ This is especially apparent with Ethereum, which currently has an unknown monetary policy. It is unclear how much ETH will be minted in 2023, for instance. Investors in the project must have faith that the admins will do a good job and choose the right issuance.
7/ Garry is accurate, however, when he makes the point that Ethereum is “more like a company” than Bitcoin. This makes sense as Ethereum has an official foundation and a massive premine which went to early investors in the project. Its creators have massive stakes and influence.
8/ Next Garry pushes a falsehood popular among altcoin promoters: that “Bitcoin doesn’t change” — But all one needs to do is read the Optech newsletter to see the dizzying array of change that is happening in the Bitcoin ecosystem each week:

9/ Altcoiners like to say Bitcoin doesn’t change as it helps them promote their own projects, which can change much more easily on a centralized whim. Of course, major updates to Bitcoin can take years, but they happen routinely. For example, Taproot will activate in a few months
10/ If Garry actually *used* Bitcoin he would know how rapid the change is. There are wallets today that do things that were impossible even just 18 months ago: CoinJoin on an iPhone, for example, or super-slick non-custodial Lightning payments.
11/ Garry next mentions the proposed Warner amendment to the Senate infrastructure bill. He was very upset by it and says that it’s very important for Americans to protect Proof-of-Stake systems. While I agree it is of paramount importance to protect all software developers...
12/ The thing is, our current financial system is Proof-of-Stake and it is broken beyond repair.

It is exclusionary and elitist. It permits investors like Garry to back projects that are forbidden for the average American. Bitcoin was invented as a new financial foundation.
13/ If anything, Bitcoin’s commitment to free speech, property rights, individual freedom, and open markets is *much more American* than any centrally-planned Proof-of-Stake system:

14/ Next Garry attacks @jack, calling him an “adherent” of the Bitcoin religion. He again tries to paint Jack and other Bitcoiners as zealots, again not disclosing that other cryptocurrencies require enormous amounts of faith from users to operate.
15/ Garry is “surprised” that Jack takes a Bitcoin-only approach.

The irony is Garry would have *zero* problem if Jack was out there shilling scam coins like most of Silicon Valley.

He’s only upset because Jack is Bitcoin focused. This is worth reflecting on.
16/ Next Garry refers to Ethereum as “totally decentralized” — a huge falsehood and very misleading.

But I guess it works for his agenda.
17/ Garry then goes back to attacking Jack, saying that Jack “feels threatened” by Ethereum.

If that’s the case, Garry, then why isn’t Jack on TV bashing Ethereum?

Why are you on TV bashing Bitcoin?
18/ Next, though, more credit to Garry, for questioning claims that EIP-1559 makes ETH “ultrasound money” —soundness derives from the unchanging nature of money, not from constant tinkering. This, at least, he gets.
19/ In sum, this video is important because it contains the attacks that will continue to be directed at the Bitcoin community from Silicon Valley investors bent on making fortunes with new digital currencies that they can mint and control and manipulate.
20/ The Cantillon Effect, where those closest to the money spigot get the most benefits, is a powerful force in cryptocurrencies outside of Bitcoin, and Garry knows this. He’s made a killing off Ethereum and other coins, and will continue to do so.
21/ It remains critical to have these conversations, to remind the world that Bitcoin is not a company, not a stock, not a trade to get more dollars — but a way to reshape the system so that insiders like Garry don’t have an advantage over everyone else anymore.

• • •

Missing some Tweet in this thread? You can try to force a refresh

Keep Current with Alex Gladstein 🌋 ⚡

Alex Gladstein 🌋 ⚡ Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!


Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @gladstein

16 Sep
1/ My latest essay "The Village and the Strongman: the Unlikely Story of Bitcoin and El Salvador" is now live.

How did the smallest country in Central America—most known for its civil war and gang violence—become ground zero for a monetary revolution? 🧵

2/ It all started in the seaside village of El Zonte. With a population of just a few thousand, dirt roads, tarp and sheet metal roofs, and no supermarket, most residents don't even have bank accounts. Historically, it was a place where residents were caretakers or fishermen.
3/ Twenty years ago, no one would have thought such a place could change the world. But two young men in town received a gift—the ability to dream—from a social worker, who taught them how to hope for a better future. @jorgebitcoinES and @romanmartinezc began to build.
Read 61 tweets
14 Sep
1/ Today @HRF announces 375 million satoshis in Q3 gifts from its Bitcoin Development Fund to 10 projects spanning the globe.

This round focuses on Bitcoin privacy, ⚡, dev education in emerging markets, improving user onboarding experience, and continued core development 🧵 👇
2/ 50 million satoshis to @bernard_parah, @actuallyCarlaKC, Tim Akinbo, and @ihate1999 for the creation of qala.dev, a program to help train and grow new Bitcoin developers in Nigeria and wider Africa. Special thanks to @paxful for making this gift possible.
3/ 50 million satoshis to @diopfode for his efforts with bitcoindevelopers.academy to help individuals in West Africa and especially those living under the colonial CFA franc system to build and use Bitcoin applications. Special thanks to @ManuelStotz for making this gift possible.
Read 13 tweets
13 Sep
“The plan is for Ukraine to make Bitcoin legal tender by the start of 2023 and create a ‘duel-currency country’ where Bitcoin sits alongside the fiat hryvnia before potentially being phased in as the dominant financial structure”


Note: this seems like speculation based on recent public statements and actions of the Ukrainian government, which is pro-EU/NATO. What’s interesting to consider is that Ukraine today is very much a key piece of US foreign policy, and on America’s side vs Putin, etc
As @anilsaidso reminds us, some politicians in Ukraine have disclosed owning hundreds or even thousands of Bitcoin:
Read 4 tweets
10 Sep
1/ New @WSJ article laying out the statist case for Central Bank Digital Currencies and the war on cash:

“If people can’t hoard physical money, it becomes much easier to cut rates far below zero”

🧵 with key quotes👇

2/ “If people can’t hoard physical money, it becomes much easier to cut interest rates far below zero; otherwise the zero rate on bank notes stuffed under the mattress looks attractive. And if interest rates can go far below 0, monetary policy is suddenly much more powerful”

3/ “Initially, CBDCs will almost certainly be designed to behave as much like ordinary bank notes as possible, to make their adoption easy and minimize disruption, while use of physical cash will be allowed to wither away. But... monetary caution is unlikely to last.”

Read 9 tweets
5 Sep
1/ As Tuesday's Bitcoin legal tender law looms for more than 6 million Salvadorans, many if not most of them fear a big monetary change.

This is partly because of the dollarization which occurred exactly 20 years ago, in a similarly rushed, top-down way 🧵 🇸🇻
2/ Last week I attended the anti-Bitcoin law protest in San Salvador. This is the secretary of a union for judicial employees.

She was against the law for many reasons, but a big one was that last time the govt changed the money system in 2001, it was bad for the lower classes.
3/ Dollarization was fairly unique in El Salvador's case. The country wasn't experiencing high inflation, or any kind of economic crisis. But policymakers said it would help bring down interest rates and fuel the banking sector. Which it did. But it had unintended consequences.
Read 26 tweets
5 Sep
@joshtpm 1/ Josh, what's remarkable is your arrogance, ignorance, and financial privilege. 1.3 billion live under double or triple digit inflation and 4.3 billion live under authoritarianism. Millions of them have turned to BTC as a way out. That you would mock them is bizarrely cruel.
@joshtpm 2/ To give you an idea of the scale of what's happening here, @paxful is just one BTC p2p marketplace. They have ~ 2M users in Nigeria alone. Exchange operates in India peg Bitcoin users at north of 10M. There are millions more from Argentina to Turkey to the Philippines.
@joshtpm @paxful 3/ Why would they turn to BTC? Unlike you--who lives in a liberal democracy with a reserve currency--they live under weak currencies without proper rule of law and civil liberties. Hence they turn to an open-source money that can't be censored, remotely confiscated, or debased.
Read 7 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!