In the last week Cryptocurrencies have again made headlines globally, as both Ethereum and bitcoin have pushed to fresh All-Time-Highs. Today we’ll be looking at the rising interest in crypto, the politics of cryptocurrencies, as well as the anti-crypto movements and media misinformation.
Strap yourself in, today will be an interesting read!
FTX Volumes Skyrocket
FTX’s US daily volumes have skyrocketed in Q3 by 512% against the previous quarter. Their volumes peaked on September 7, with over $807 million traded in 24 hours.
They recorded an average daily volume of $360 million, and increased its user count by 52% against the previous quarter.
FTX’s acquisition of LedgerX will allow the company to provide licenced & regulated crypto futures and options. This acquisition will allow them to shape the retail and institutional market in the United States.
By offering crypto futures and options provides institutional access to cryptocurrency exposure without the risks associated with actually holding crypto.
All of this points again to the increasing adoption of cryptocurrency by mainstream finance!
Politics In the Crypto World?
Cryptocurrencies are built to be a decentralised solution to the increasingly centralised systems of power in the world; i.e governments, banks & regulators.
Despite this, people have attempted to label crypto (especially Bitcoin) as a right wing, conservative associated tool.
Author Dave Troy labelled Bitcoin as a “sequel to the January 6th attack”.
I can't stress this enough: the crypto attack on the dollar is not strictly a "pump and dump" or a "grift." It's an ideologically-driven attack on the legitimacy of fiat currency, the @federalreserve, and the incumbent financial system. It is the sequel to the January 6th attack.— Dave Troy 🇺🇸 (@davetroy) November 9, 2021
Troy’s scathing take on Bitcoin advocacy is an uninformed opinion, focusing on one singular group’s adoption of cryptocurrency. It’s the equivalent of saying that computers are an ideologically driven weapon as extremist groups can use them to communicate…
Sounds quite ridiculous right? That’s because it is. But that doesn’t mean bitcoin doesn’t appeal to certain “political” groups.
As Bitcoin is a decentralised and largely anonymous solution it offers freedom of transaction. This is a fantastic lever for resistance against unjust governments and laws, offering a means to evade abuses of Authoritarian regimes globally.
Perhaps this is why China has banned it? There are many theories regarding China’s Bitcoin regulation.
In my opinion Troy is not correct in saying that Bitcoin is an attack on Fiat currencies and the Federal Reserve, however the sentiment is not far off.
Bitcoin acts as a check against the Central Banks of the world, who have progressively devalued fiscal currency throughout the last 100 years. Bloomberg has offered insight into how BTC has acted as an inflation hedge in recent years.
Rather than BTC being an attack on the Federal Reserve & fiat currency, Bitcoin is actually a defence mechanism against against Central Banks attacks on fiat currencies.
The US’ Central Bank and Government has failed to preserve the USD’s value (see below). Between the currency printing presses working overtime and the US Government’s raising of the debt ceiling, the United States’ systems have undermined the legitimacy of the USD by themselves.
Bitcoin has not undermined fiat’s legitimacy. Bitcoin is a solution to fiat currencies that have been undermined by their own governments and central banks.
At NGT8R.com we love cryptocurrencies. Despite the increasing adoption of cryptocurrencies in the mainstream, there are still groups that hate crypto.
Discord recently discovered this the hard way, facing backlash to a possible integration of Ethereum wallets to discord.
The founder & CEO of Discord, Jason Citron, reassured users that Discord will not integrate crypto. This comes after he had shared screenshots showing Discord connecting to Ethereum saying “probably nothing.”, the phrase used by crypto users to signify that something is a big deal.
The backtrack was a result over many tweeting threats to cancel their paid Discord subscriptions, and tweeting screenshots of cancellation.
The activists made claims of Eth’s energy use, crypto scams on the platform, and how annoying crypto and NFT “bro’s” can be.
For those that aren’t knowledgeable or warm to crypto, cryptocurrencies are an unwanted extension into a digitalised, capitalistic, and neo-liberal world.
This is a fair perspective – does crypto offer a new system of freedom, or does it play into the ever increasing wealth divide seen globally?
Crypto Lies, Scams & Media
Lets be honest. Understanding cryptocurrencies and blockchain is difficult enough without scams, misinformation and the media all leveraging the lack of crypto education to their advantage.
Crypto fundamentalists have learnt to ignore much of the misleading news and media regarding crypto as well as the dubious promotions of meme coins.
Unfortunately for those new to crypto, many choose to trust content creators and media. Many content creators etc. receive endorsements for Crypto promotions, or are attempting pump & dump tactics in the largely unregulated market.
There are two main formats that misleading Crypto news is spread to the mainstream masses.
Lets address the first – mainstream media. Publications such as The Sun tote alt-coins as potential windfall opportunities. This particular publication has pushed Doge coin more than a broken down car. There are numerous publications misleading the masses, without making their interests public.
The second format is through content creators – mainly via TikTok and YouTube. These promotions are typically incentivised with cash or a significant amount of coin. An example of this was the Save The Kids coin, which was promoted by 4 ex-members of Faze clan (they were fired following the scam). The promoters were compensated in the coin, and triggered a pump and dump scandal.
These highly unethical promotions leave uneducated investors holding the bag.