Bloomberg journalist Zeke Faux explores the world of cryptocurrencies, from superyachts to parties in Miami. He buys a Bored Ape and sends Tether to a scammer. He discusses NFTs, investor behavior, and crypto's association with criminality. The podcast also touches on a video game crash in the Philippines and the mystery of Tether. FTX's 'Sanbankman free' is mentioned as well.
Celebrities' endorsements in the crypto world may lack sincerity and be driven by financial incentives, undermining the sense of community.
The crypto space is plagued by scams, money laundering, and criminal activities, posing challenges for law enforcement and overshadowing its potential as a revolutionary financial system.
Crypto's appeal primarily lies in the belief that it can make people rich, but to attract a wider audience, it needs more compelling use cases beyond the promise of wealth.
Deep dives
Crypto as a Social History
The book 'Number Go Up' by Zeke Fox provides a social history of cryptocurrencies rather than a technical manual. It explores the crypto market, key players, and real-life stories, including the highs and lows of this financial mania. The author, initially skeptical about crypto, embarked on a thrilling adventure by delving into the world of hustlers, zealots, and con men. From owning a mutant ape NFT to witnessing the darker side of the crypto world, the book offers a captivating account of the crypto craze and its societal impact.
Celebrity Endorsement and Bizarre Communities
The podcast episode discusses the involvement of celebrities in the crypto world and how it creates a sense of community. From Paris Hilton to Jimmy Fallon, many celebrities jumped on the crypto bandwagon, promoting various projects and NFTs. However, the idea of community within crypto isn't always what it seems, as the celebrities' endorsements can come across as insincere or driven by financial incentives. The episode highlights that the crypto community doesn't always have a solid foundation, and the absurdity of being associated with a certain coin or token takes precedence over genuine engagement.
Crypto's Dark Side and Crime Association
The podcast episode sheds light on the association between crypto and criminal activities. It explores the prevalence of scams, money laundering, and human trafficking within the crypto space. The discussion delves into the difficulties law enforcement faces in combating these crimes, given the decentralized nature of cryptocurrencies and the lack of accountability. Additionally, the episode reveals the inherent risks of crypto investments, with stories of scams and fraudulent companies collapsing, leaving investors in financial ruin. It brings attention to the fact that crypto's potential as a revolutionary financial system may be overshadowed by the presence of bad actors and criminal behavior.
Crypto's Appeal Based on Getting Rich
The appeal of crypto to many people boils down to the belief that they can get rich. The idea that investing in crypto can lead to significant financial gains has been a driving force for its adoption. However, without the prospect of getting rich, crypto becomes less appealing and loses its purpose for many 'normies.' To attract a wider audience, crypto needs to offer use cases that are more compelling and applicable to everyday life, rather than just focusing on the promise of wealth.
The Scams and Illusions of the Crypto World
The crypto world is filled with scams and illusory promises. Many venture capitalists invest in crypto companies with the intention of profiting from price increases rather than considering the long-term profitability or usefulness of the projects. One example is the game Axie Infinity, which was hailed as a replacement for work and a way for poor people to earn a living. However, this ultimately led many people in the Philippines into debt and financial ruin. Another instance is the mysterious and controversial crypto company Tether, which claimed to be backed by real money, but faced accusations of fraud and lacked transparency. These examples highlight the lack of regulation and the potential dangers of the crypto market, where untrustworthy individuals thrive in a trustless system.
Send us a textBloomberg journalist Zeke Faux travelled around the world to better understand the world of crypto currencies, meeting the biggest names in the space on superyachts in the Caribbean and at parties in Miami and travelling to El Salvador to see how bitcoin is being used in the real world.Along the way he buys a Bored Ape with his book advance and sends Tether to a scammer in Cambodia to learn the real-world uses of cryptocurrencies.Here is a link to the book on Amazon - https://am...
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