Thread by @jenshow

Here is an example of a truly stupid article about cryptocurrency. You all know what a straw man argument is, right? This is one. Here is why. A thread. How Innovative Is Crypto? nationalreview.com/2021/10/how-in…

2/ this person, an academic, has a clear agenda to sing the praises of centralized, inflationary, government-controlled fiat money driven by the power of the state. “Not so fast on this crypto thing!” he yells as he dives in front of you for your own good.

3/ he rhapsodizes about how we already use digital money, as if digital currency was the point. This amounts to shining examples of why crypto is so popular: the government creates money. Every day, all day long, the central bank of the United States creates US dollars.

4/ through fractional reserve banking, the main system by which banks in the US operate, the Fed adds money to the system *all the time.* The US dollar is an inflationary money supply. Every time someone gets a mortgage, that money is created.

5/ Every time the money supply gets larger, the collective buying power of those dollars stays roughly consistent, but individual buying power of those dollars goes down. The Fed is content with 3% inflation per year, and with your 2% savings never actually making money.

6/ the entire system is predicated on lots of consumer spending, and saving does not positively influence the system in the same way. It effectively takes dollars out of the system. Why is this important? Because #bitcoin is deflationary.

7/ the supply of #bitcoin is finite. There will never be more than 21 million BTC in circulation, so Bitcoin is not subject to inflation’s steady devaluing. This is one thing that separates BTC from crapcoins.

8/ And this brilliant Johns Hopkins guy who 100% knows this does not mention the argument that crypto removes inflationary control of the money supply. While he’s arguing with himself about how great central banking is he distracted you from the ideological foundations of crypto.

9/ then he sets up@other straw men: crypto is used for criminal activity. Guess what Mr Money Expert: cash is used far more for criminal transactions than cryptocurrency and you don’t view that as a reason to ban the dollar. So that’s not why you don’t like it either.

10/ next, the tires, disproven canard of crypto mining using the energy of a medium sized country. This went directly from Buterin’s mouth to Elon Musk’s ears and from thence it became unquestioned gospel. Guess what? Elon is smart but not super smart when it comes to crypto.

11/ he chuckles to himself about these crazy crypto adherents and in doing so reveals himself to have Old Man Disease. Dear Johns Hopkins Professor: please go find a record label executive or magazine owner from 2002 and tell me how that worked for them.

12/ OMD got the recording industry. Magazines. Phone companies. Movie studios. Film cameras. It doesn’t take a lot to understand that being ubiquitous does not protect your industry from change.

13/ the best argument against what he talks about is this: institutional money has validated Bitcoin. Senators talk about it. Janet Yellen talks about it. Wall Street invests in it. It’s on CNBC constantly all day, every day. The rest of crypto less so - but it’s not going away.

14/ right now the brains in US banking are trying to figure out how to control, usurp, or otherwise rein in cryptocurrency and *they are not doing that because it’s a harmless threat.* The reason article like this get published is to detract *you* from@ buying in to crypto.

15/. If BTC can become a tool of elite bankers to further control money, they’d. E fine with that. What they don’t want is you owning very much of it. In other words, they’ll tolerate it and dismiss it right up@until they don’t anymore.

16/ you know the quote “‘how did your marriage go bad?’ ‘Gradually…and then suddenly.’” Guess what is happening when this article writer, a true believer, writes this stuff? No one will be more surprised than he when BTC hits a million dollars. Avoid dumb arguments. / TOUT FINI

Also. Proofreading. Sorry for all the @ s. Ugh.