David Yaffe-Bellany, a crypto industry reporter, and John Herrman, a technology reporter, discuss OpenAI's plan to combat disinformation in elections. They also talk about the debut of Bitcoin ETFs and the impact on the crypto industry. Additionally, they explore the emergence of TikTok as a platform for selling items and TikTok's venture into e-commerce. The podcast offers insight into the intersection of AI, cryptocurrency, and social media trends.
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Quick takeaways
The approval of Bitcoin ETFs by the SEC opens up a more accessible and regulated way for investors to participate in the crypto economy, while the regulatory environment remains skeptical of crypto.
The approval of Bitcoin ETFs has sparked a range of reactions within the crypto community, with optimists highlighting increased accessibility and potential institutional investment, and skeptics expressing concerns about the erosion of crypto's original proposition.
TikTok is evolving into an e-commerce platform, offering users the ability to sell products directly on the app, but there are concerns about the disconnect between the types of products being sold and user interests.
Deep dives
Bitcoin ETFs approved by SEC
The US Securities and Exchange Commission (SEC) has approved the trading of Bitcoin exchange-traded funds (ETFs) by several Wall Street firms, including BlackRock and Fidelity. This is a significant development for the crypto industry, as the approval of ETFs allows investors, including those with retirement accounts, to gain exposure to Bitcoin without the need for direct ownership. The approval has generated optimism and interest in the market, as it provides a more accessible and regulated way for investors to participate in the crypto economy.
SEC's Gary Gensler's cautious stance
While the SEC approved the Bitcoin ETFs, SEC Chair Gary Gensler expressed his reservations about Bitcoin, calling it a speculative, volatile asset used for illicit activities. His statement emphasized that the approval of the ETFs should not be interpreted as an endorsement of Bitcoin. Gensler's cautious stance reflects the regulatory environment's overall skepticism towards crypto, despite the recent approval.
Crypto community reactions and implications
The approval of Bitcoin ETFs has sparked a mix of reactions within the crypto community. Optimists highlight the increased accessibility, potential influx of institutional money, and recognition of Bitcoin's store-of-value role. Skeptics, however, express concerns about the erosion of crypto's original proposition, as traditional financial institutions become more involved. Additionally, debates over crypto regulation persist, with ongoing lawsuits challenging the SEC's classification of crypto as securities. While the approval of ETFs is seen as a positive development, the long-term implications for the industry and its revolution remain uncertain.
Broader impact and market response
The approval of Bitcoin ETFs has had wider implications for the crypto market, resulting in increased interest and trading volume. In the first few days of trading, ETFs garnered substantial attention, with billions of dollars in trading volume. While the initial price reaction may not have met expectations, it is seen as a positive debut, attracting interest from both speculators and investors seeking exposure to crypto. The optimistic sentiment has extended beyond Bitcoin, with other coin prices experiencing a boost as well.
The Rise of Selling on TikTok
TikTok is evolving into a platform for e-commerce, with more users selling products directly on the app. Users can set up their own storefronts and promote their items through livestreams and affiliate selling. TikTok is streamlining the selling process, offering deep discounts, and providing promotional firepower to sellers. Although the shop feature is still relatively new, TikTok's attention-grabbing ability and its massive audience make it an attractive platform for sellers looking to monetize their content. However, some users express frustration over the increased ad load and the variety of products being sold on TikTok.
Selling a Pencil on TikTok
A fascinating experiment conducted by John Herman of New York Magazine revealed the possibilities and challenges of selling on TikTok. Herman attempted to sell his used mechanical pencil through the TikTok shop feature, generating a live stream where he showcased the product's features and pitched its selling points. Although the experience was somewhat comical, it highlighted TikTok's efforts to transform into a commercial platform. While TikTok is making it easy for users to sell, offering tools for setting up a store and generating AI-generated product listings, there are concerns about the disconnect between the types of products being sold and user interests. TikTok is working with logistics partners to enable real store operations on the platform, signaling its intention to become a serious player in e-commerce. However, its success may ultimately depend on how well it can navigate the balance between monetization and maintaining a unique and enjoyable user experience.
OpenAI has released its plan to fight disinformation in elections in 2024, but will its policies be consequential compared to those of other generative A.I. companies? Then, a watershed moment had crypto fans celebrating for the first time in maybe more than a year. And finally, what one writer’s attempt to sell a used mechanical pencil on TikTok says about how the platform is changing.
Today’s guests:
David Yaffe-Bellany covers the crypto industry for The New York Times
John Herrman covers technology for New York Magazine
