Read on Twitter
1/ Based on some recent conversations in interviews, I think I can summarize some of @profplum99's views on Bitcoin.
Mike disagrees with the premise that true scarcity for money is good because it might ultimately fail to incentivize investment or create a zero sum wealth game.
Mike disagrees with the premise that true scarcity for money is good because it might ultimately fail to incentivize investment or create a zero sum wealth game.
2/ Quote: "lost [coins have] created a windfall for those who continue to hold bitcoin. By doing nothing they have gained at the expense of the rest of society”
3/ Quote: "if [Bitcoin is lent] it to somebody who forgets the keys, that creates a windfall for the remaining holders and that discourages risk-taking the whole point in society is that we want to build a system that encourages risk-taking”
4/ Quote: "But bitcoin is actually too good at [scarcity]. By taking it out of the hands of human beings you cease to have the monetary system function on behalf of human beings and that's not a system you want to live in”
5/ Quote: "[Bitcoin creates] a place where our social dynamic becomes a game of monopoly the objective becomes to accumulate all the wealth not to build up and aggregate the number of hotels but to use your hotels to deprive your economic compatriots"
6/ Mike also thinks Bitcoin looks like a Ponzi scheme and because its price is so inelastic, when people start selling, price can go down quickly (or the reverse).
7/ Quote: "[Buyers of Bitcoin believe they will] become rich because of cryptocurrencies and “opting out” as a first mover into, effectively, a chain letter or a ponzi scheme.”
8/ Quote: "You have an inelastic product [in which] trying to put additional money in causes the price to go up and people interpret that as sign of success. "look it's protecting my wealth", "look it's working, this is a great thing!"
9/ Based on Twitter responses, Mike also believes Tether is unbacked and fears that China/Russia/Iran could (and have incentive to) use Bitcoin against the US by confiscating ASIC miners and conducting a 51% attack.
10/ Supporting Link: https://twitter.com/profplum99/status/1351615064793497605?s=20
11/ Supporting Link: https://twitter.com/profplum99/status/1351456787396890625?s=20
12/ Supporting Link: https://twitter.com/profplum99/status/1351267410402111491?s=20
13/ While I do not personally do not agree with Mike's conclusions, I hope this was helpful to others who are trying to understand his views on Bitcoin.
Also, I hope Mike will correct any inaccuracies or misunderstandings in this thread!
Also, I hope Mike will correct any inaccuracies or misunderstandings in this thread!
Source of quotes was this interview:
Another podcast referenced in the previous interview: https://twitter.com/lylepratt/status/1351973114247344128?s=20
My summary appears to be generally correct: https://twitter.com/profplum99/status/1352018022525878272?s=20
Potential further info on Mike's China/Tether hypothesis: https://twitter.com/DzhambalaHODL/status/1351942170253668352?s=20
On why Mike thinks bitcoin will be banned, summarized based on other context “China knows the US military is dependent on the USD. Thus, China will use Bitcoin to attack the USD to attack the US military.” https://twitter.com/_animal_spirits/status/1352437746653040642
. @nic__carter said on Clubhouse that Mike found may have found new information on the ownership structure of Tether that implies it is controlled by the Chinese State.
If someone else heard and I have this wrong let me know. Podcast of the conversation should be out tomorrow.
If someone else heard and I have this wrong let me know. Podcast of the conversation should be out tomorrow.
For the record: https://twitter.com/lylepratt/status/1347051798578737152
Mike has also found problems with the 3 academic papers written to debunk the tether-creation/BTC-price correlation. This will supposedly be covered in the upcoming Grant Williams podcast, but here are also some Twitter comments that indicate the view: https://twitter.com/profplum99/status/1351367789756338177
