The NY Times feature on Bitcoin Maximalism is full of surprises. Here are a few
Is the NY Times changing its tune? Not exactly, but it’s a start. And a big improvement over the mainstream media’s constant attacks on bitcoin. The paper interviewed notable bitcoiners, quoted them without mincing words, and let them present the case for bitcoin supremacy. Of course, The NY Times also sneaked in its usual anti-bitcoin points of contention. It’s only fair and we’ll take it.
The piece, a feature on bitcoin maximalism, comes with the odd title “The crypto market crashed. They are still buying Bitcoin.“And they are, but geez! At the center of The NY Times’ story is Swan Bitcoin’s Cory Klippsten. He denounced both Terra and Celsius’ flaws and vulnerabilities long before both projects crashed and burned and destroyed many lives. That’s where the article begins .
“In the crypto world, Mr. Klippsten is known as a Bitcoin maximalist, or ‘maxi’ – a hardcore evangelist who believes Bitcoin will transform the financial system even as fraud permeates the rest of the crypto ecosystem. The Maxis are only a subset of the crypto industry, but their ranks include influential figures such as Jack Dorsey, a founder of Twitter and an early Bitcoin supporter.
So far so good. The inaccuracies don’t take long to appear, but let’s take it easy on The NY Times. Bitcoin and cryptocurrencies are complicated subjects and not their strength.
“And as the market has melted, they have embarked on a public relations offensive, aimed at convincing investors and lawmakers that Bitcoin is different from the thousands of other digital currencies that have proliferated in recent years before the tank this spring.”
First of all, bitcoin is completely different. Second, bitcoin maximalists often decry other crypto projects’ shortcomings and vulnerabilities. They did so long before the current crash, and they will continue to do so. Their goal is to protect the public from Celsius and Terra-like situations. And they do it at a considerable cost, as they are constantly insulted and dragged into endless arguments.
NY Times Citing Notable Bitcoin Maximalists (and an SEC Guy)
Let’s give it to them, The NY Times let these controversial figures do the talking. For example, they quote Cory Klippsten predicting the future of the crypto industry:
“The only future for non-Bitcoin crypto is to seek to be co-opted by banks and governments and become part of the existing system.”
They notably quote bitcoin developer and thought leader, Jimmy Song. The NY Times wrongly qualifies him as “a crypto podcaster” and rightly as “an outspoken Bitcoin maxi”, but hey… They let him explain the difference between bitcoin and the rest of crypto.
“Bitcoin is decentralized, digitally scarce money. Everything else is centralized. There’s a world of difference between censorship-resistant, self-sovereign money and a gambling machine.”
They quote “John Reed Stark, a former official with the Securities and Exchange Commission,” who has apparently never heard of The Lightning Network. And comes armed with debunked arguments from the last decade.
“You can’t use it to buy anything – it’s too volatile and complex and full of fees. There’s no intrinsic value.”
The NY Times also quotes the now famous “Michael Saylor, CEO of MicroStrategy, a software company that has built up a large Bitcoin reserve.” He takes the opportunity to explain how difficult it is to be a bitcoin maximalist in this day and age.
“If you call out someone’s risks they take, and they’re otherwise healthy, you can be accused of hitting the bank or being a troll. It is a bit difficult to explain this theoretically before the crash happens. But now it has happened.”
Last but not least, The NY Times quotes the Bitcoin Policy Institute’s David Zell, who explains why bitcoin is worth it.
“What we’re saying is that Bitcoin has a set of characteristics that make it unique. Those differences are strong enough that if you’re going to have a serious policy conversation around the industry, it’s useful to draw that distinction.”
BTC price chart for 08/02/2022 on Kraken | Source: BTC/USD on TradingView.com
The attack you felt coming
The NY Times had to spread the usual FUD. They just had to.
“Hardly anyone uses Bitcoin to carry out regular transactions. Last year, El Salvador introduced Bitcoin as its national currency, but that project has been a resounding failure.”
The first point is quite true, especially if we consider that bitcoin is only a marginal phenomenon for most of the world’s population. The second point is a complete lie, and a misrepresentation of the facts. Consider this: other dollarized countries, such as Ecuador and Panama, are feeling the effects of America’s rampant money printing. Both countries hosted massive protests recently and remain in a state of turmoil. El Salvador, on the other hand, is one of the few countries in the world that reported some economic growth in recent quarters.
“Confirming Bitcoin transactions – a process known as ‘mining’ because it rewards participants with digital coins – is energy-intensive: Researchers estimate that Bitcoin mining can produce as much as 65 megatons of carbon dioxide per year, compared to the annual emissions of Greece. “
Bitcoinist has countered this misleading narrative once and againplus we have reviewed material proving the contrary. This time, surprisingly enough, The NY Times provides the counter itself.
“Now Bitcoin supporters are building their own political apparatus. This year, David Zell, a Bitcoin advocate, started the Bitcoin Policy Institute, a think tank that drives a pro-Bitcoin agenda in Washington. The institute has argued that concerns over Bitcoin’s energy consumption are exaggerated. »
The NY Times feature on bitcoin maximalism is a surprise in itself. We at Bitcoinist tip our hats to them for showing the other side of the coin for once. Let’s hope it happens again.
Featured Image by Jerzy Górecki from Pixabay | Charts by TradingView
