Crypto News Updates

Elon’s FUD Is A Problem For Tesla, Not Bitcoin

While the Tesla founder has proven inspirational in the past, with Bitcoin, he has fallen prey to his own eccentricities.

Tesla’s FUD bitcoin announcement doesn’t mean bitcoin is overvalued; it does mean Tesla is overvalued. Tesla cars are expensive luxury items and their purchase is justified by Tesla being an aspirational brand. That brand is extremely dependent on the mystique of Elon Musk; can Musk lose that mystique? Well, he just did with Bitcoiners and soon with others too.

There are many types of inflation in the world. The Federal Reserve prints money to fund an economic system that has become wasteful and corrupt. Elon Musk has been spending the currency of his reputation to build a company that currently can’t justify its valuation. In both cases, bitcoin is the antidote.

For over a decade, I have been an unabashed Elon Musk fanboy. The scope of his world-changing ambition was a shining beacon of hope in a world that had surrendered to pessimistic malaise. They promised us flying cars, instead we got dumb mobile apps. Elon proved that the human spirit could think bigger.

Over the years, my Elon fandom has become more mainstream. Elon Musk has become a household brand. He has used that well-deserved fame to turn Tesla into an aspirational luxury brand. He has used the goodwill of his fanboys to be forgiven for everything from building his company on government handouts, to missing deadlines, to calling a rescue diver a pedophile. All the while, Tesla shares grew to a market cap larger than the big-five automakers combined — just as competition in electric cars has heated up from the likes of Mercedes on the luxury scale and Toyota for the everyman.

In the final stages of inflation, things tend to come off the rails. This seems to be happening to Musk. We should have some sympathy for his “fake it, till you make it” approach to building Tesla. Every truly ambitious idea must be fueled by hopium initially. The pressure on Musk now, however, is immense. With the scope of the ambition, and the elevated, unattainable expectations, things are now coming off the rails.

You either die a hero, or you live long enough to see yourself become the villain. The problem for Musk is that he has increasingly been building the hopium around a cult of personality rather than an idea. As he has become the focal point of attention, his reputational currency has lost touch with the fundamentals and become about celebrity. Musk is driving the Tesla brand rather than the other way round. The result is he has been needing to spend more and more of this currency just to stay in place. He has had to go from wrestling with Mars to a memelord wrestling with nonsense.

This is a very dangerous game. Any teenager who has had a disappointing crush knows how quickly adoration turns to hate. Musk has been setting up impossible expectations and betraying them at a faster and faster pace. He has already lost the Bitcoiners. What do you think will happen when an entire generation — the most social media–savvy generation — realize that the “Dogefather” has been hustling them?

I hope Musk can pull himself out of this erratic orbit around superficial, meme-driven fandom and return to the fundamentals. Here, he can take a lesson from Bitcoin. Bitcoin has died a thousand deaths in the media and always come back stronger. Why? Because Bitcoin is a pure idea. There is no cult of personality. Satoshi left so his idea could live. You cannot kill an idea whose time has come. Come back to the land of long-term thinking, Elon. Come back to Earth, so you can take us to Mars.

This is a guest post by Edan Yago. Opinions expressed are entirely their own and do not necessarily reflect those of BTC, Inc. or Bitcoin Magazine.

Source: Bitcoin magazine

Crypto News Updates

The Sudden, Unexpected End of Crypto Tribalism

“The lower the stakes, the more intense the dispute.” 

Sayre’s Law

The Narcissism Of Small Differences

Bitcoin and the crypto world have enjoyed a phenomenal decade. Despite the fact that Bitcoin is perhaps the most disruptive technology to the status quo since the printing press, the powers-that-be have mostly left us alone. Sure, exchanges have been obliged to perform KYC measures, there’ve been a few darkmarket arrests, China banned Bitcoin a few times and the U.S. Securities and Exchange Commission went after some ICOs. But these regulatory responses are the bare minimum, the same regulations are applied to the very scary antiques market. 

For a decade, we have been left largely to our own devices while enjoying the unprecedented luxury of a growth rate that has averaged thousands percent. To be extremely successful, all you had to do was buy some bitcoin and then do nothing. In fact, you didn’t even need to do that, you could have chosen the cryptocurrency you were going to buy by throwing darts while drunk and blindfolded and you still would have seemed like a genius for buying XRP. 

So, we did what people always do when they are free from any real troubles — we turned on each other. Bitcoin hated Ethereum. BCH hated Bitcoin. Monero hated Zcash. And everyone hated Ripple. We whiled away the hours of our idyllic age of innocence, by going to Twitter and telling people to “have fun staying poor… idiot.” It felt important. 

Undoubtedly there are important differences between Bitcoin and, say, Ethereum. There might also be a very real sense in which they are competing with each other. While we had no problems more important to attend to, the rivalry, and its intensity, perhaps made sense. 

End Of Innocence

This tribalism is soon going to come to a very sudden end. Bitcoin and crypto have become too big to ignore. Leviathan is stirring. Even in the minds of the most unimaginative of bureaucrats, the realization is starting to dawn: “This is not a toy, this is not some millennial fad. This is our control over the monetary and financial system that these kids are coming after…”

Monero is being delisted from exchanges. An Ethereum Core dev and the BitMEX CTO have been arrested. The Travel Rule is being adjusted special, just for us. In the U.S., in Europe, in Israel and soon everywhere, you must disclose your crypto holdings, not just when you sell but always. 

“First they laugh at you, then they ignore you, then they fight you…” 

Congratulations everyone, they are getting ready to fight us. No pretendsies anymore. This fight will be for keeps. Are you ready? They say you can’t fight City Hall. Well, how about fighting a global coalition of nations with nuclear weapons and interpol at its disposal that can make the financial rules up as they go along? 

We are going to need every ally we can get, even if they are an imperfect shitcoiner. 

New Battle Lines

It’s actually even worse than that. Those closest to us are going to be the ones to turn the knife. For a decade, we have been entrusting our funds to exchanges and relying on them as our on- and offramps. We have also been praying that this would be the “year the institutions come.” Well, the exchanges have built huge businesses that they now need to protect. They have shareholders to whom they must answer. They have precious regulatory licences that were expensive to acquire and are easy to lose. 

Coinbase is going to conduct an IPO. Kraken has become a bank. Banks were an invention of the free market. They have been co-opted into a quasi-arm of the government and have become the primary enforcers of the financial surveillance state. How long before Kraken has its tentacles in your finances, operating under instructions from the regulator? How long before we  begin to see all those institutions we summoned digest crypto companies in an orgy of M&A?

If you imagined that institutions getting interested in Bitcoin meant that they would begin to lobby on our behalf, you were mistaken. They will lobby on behalf of their own interests: to be mandatory middlemen, who must approve your every transaction and who take a cut for the trouble. The exchanges that served us so well over all of these years, who offered us great convenience in exchange for the mere trifle of controlling our keys — these exchanges run by Bitcoin OGs — they are no longer our friends. The age of innocence is over. 

Together, We Shall Overcome

Nothing unites a community like a common foe. As large as the perceived differences between the different crypto tribes might be, they pale in comparison to the gulf between us and the nocoiners. Right now, we live in a nocoiner world. A fiat world of central authorities, financial surveillance and crony capitalism. The nocoiners have the power by default. We must choose to either unite, or allow them to succeed through a strategy of divide and conquer. 

The great underdog success stories have always required the revolutionaries to put aside their differences and unite. The squabbling Greeks came together to defeat the Persians and defend their democracy. The competing houses of England paused their fighting and forced King John to sign the Magna Carta. The States of America forgot their ideological and religious differences, defeated the Red Coats and won their independence.

This hour calls for us to unite. While I am sure we will struggle to do so, I am confident that as the battle lines become clear, we will rise to the occasion and focus on the mission we have in common. This is why I am excited to see projects like Sovryn and TBTC; mission-driven projects, true to our trustless values, bringing together the worlds of Bitcoin and Ethereum.

The higher stakes, the more intense the need for unity. 

At the Hot Gates, the Spartans were outflanked and massacred. At Marathon, however, they stood shoulder to shoulder with their arch-enemy, the Athenians. That day, free men won a victory for liberty that we benefit from to this day. Even the Spartans couldn’t HODL alone.

This is a guest post by Edan Yago. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

The post The Sudden, Unexpected End of Crypto Tribalism appeared first on Bitcoin Magazine.

Source: Bitcoin magazine