Monday, December 11, 2017

How Much Bitcoin Do "Nazis" Hodl?

I can't find the tweet, but someone sent one around showing SJWs tracking Bitcoin addresses that donate to Alt-Right causes. Bitcoin is anonymous, but also public, thus your anon address can be "blacklisted" based on where it sends coins.

This could also presumably be used to figure out how many coins are held by the Alt-Right and various other social groups, since it is all 100% public information.

Which reminds me of a description of the Saudis and Wahhabism from Bernard Lewis I believe. Explaining how fundamentalist, jihadist Islam spread, he said imagine members of the KKK owned all the land containing oil in Texas.

In this case, the Bitcoin wealthy are most likely libertarians or former libertarians. I learned of Bitcoin back in 2010. I can't remember if it was discussed in the comments at a neoreactionary blog or a liberatarian one, but there was much cross pollination.

In the past couple of years came problems with funding the Alt-Right and a desire for anonymity. Presumably a bunch of these folks got involved.

Back in 2010 you could mine coins with a CPU. Just run the wallet. A 50 coin block is worth about $800,000 right now.

Presumably, libertarian/neoreactionary/alt-right causes will see a major uptick in funding over the next few years. Assuming the price stabilizes.

My view on the current mania: the blockchain is more important than Bitcoin itself. Although there's reason to think Bitcoin might be the "gold standard" for cryptocurrencies, Bitcoin definitely looks like a speculative bubble. If the price goes to $1 million and settles at $100,000, you will say I am wrong, but we can't see across the Event Horizon. That's why it is speculative. Internet stocks were a speculative bubble in 2000, but the Internet is still here, and you made money if you bought survivors such as Amazon. Housing was a speculative bubble in 2005.

Bitcoin's value is impossible to predict because it is based solely on future demand. Speculative demand is high in the expectation that there will be massive future demand from savers. This is why Bitcoin is a bubble. But Bitcoin will always be a bubble, like gold, because there is little intrinsic value. Gold has some industrial use and jewelry demand, but monetary demand exceeds it. Also, if the price of gold exceeds platinum, demand for platinum jewelry might increase, or industrial substitutes are found. But the monetary demand for gold goes up because like Bitcoin and other financial assets, the higher the price, the higher the demand.

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