Dogecoin co-founder blames 'dangerous' capitalism, 'won't return' to cryptocurrency

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Fox Business 15 July, 2021 - 11:50am 19 views

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Rocketfuel Blockchain CEO Peter Jensen discusses the emergence and future of cryptocurrency.

"After years of studying it, I believe that cryptocurrency is an inherently right-wing, hyper-capitalistic technology built primarily to amplify the wealth of its proponents through a combination of tax avoidance, diminished regulatory oversight and artificially enforced scarcity," Palmer wrote.

He said that despite "claims" that cryptocurrency is decentralized, meaning it is not controlled by a central bank or authority, "the cryptocurrency industry is controlled by a powerful cartel of wealthy figures who, with time, have evolved to incorporate many of the same institutions tied to the existing centralized financial system they supposedly set out to replace."

Palmer likened the industry to a "cult-like ‘get rich quick’ funnel designed to extract new money from the financially desperate and naive" and help "those at the top" make "profiteering more efficient."

Palmer went on to describe what he believes to be an unfair system for average investors. 

"Lose your savings account password? Your fault. Fall victim to a scam? Your fault. Billionaires manipulating markets? They’re geniuses," he tweeted. "This is the type of dangerous ‘free for all’ capitalism cryptocurrency was unfortunately architected to facilitate since its inception."

Palmer went on to explain that because crypto investors are sensitive to "modest critique," on top of everything else, he is "no longer" willing to "engage in public discussion regarding cryptocurrency," adding, however, that he applauds "those with the energy to continue asking the hard questions."

Reactions to the Dogecoin co-founder's thread were mixed. Palmer posted his thoughts the same day film director Spike Lee released an advertisement praising Bitcoin as a currency that everyone can take part in. 

"Old money is not going to pick us up; it pushes us down. The digital rebellion is here," Lee says in the ad.

Congressional hearings about crypto, however, have been ramping up in recent months. Most recently, the Senate Banking Committee held a hearing on digital currencies on June 9.

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Bitcoin Doesn't Care if You Think It's Right Wing | P. Byrne - CoinDesk

Coindesk 15 July, 2021 - 11:29am

Dogecoin co-founder Jackson Palmer says bitcoin is "inherently right-wing, hyper-capitalistic" but, really, it's whatever you want it to be, says our columnist.

As some estimates indicate there are currently north of 100 million cryptocurrency users worldwide, or roughly the population of Japan, limitations of time, availability of information and human working memory mean we are necessarily blind to the fullness of cryptocurrency as an ecosystem. There are use cases we cannot comprehend, inventions we have not yet seen, motivations we do not understand. When we criticize cryptocurrency, we must be mindful that the content of our critique may have more to do with what we cannot see than that which we can.

Preston Byrne, a CoinDesk columnist, is a partner in Anderson Kill's Technology, Media and Distributed Systems Group. He advises software, internet and fintech companies. This is not legal advice.

We are long past the stage where generalizations about crypto are intellectually useful. This has not prevented some from trying to make them, often in 280 characters or less. Jackson Palmer’s recent tweetstorm on bitcoin is one such example. Palmer is the co-founder of Dogecoin, a project that requires no introduction. Palmer eventually retreated from cryptocurrency to work at Adobe after the joke project acquired a life of its own.

In his tweetstorm, Palmer refers to cryptocurrency as an “inherently right-wing, hyper-capitalistic technology built primarily to amplify the wealth of its proponents through a combination of tax avoidance, diminished regulatory oversight and artificially enforced scarcity[.]” He criticized the industry as being a hive of dishonest media and billionaire hustlers who exploit the vulnerable, move markets with tweets and cynically evade their legal obligations.

Is Palmer right? In some cases, sure, but this is still a cheap shot, one first made – unconvincingly, in my view – six years ago by Virginia Commonwealth University academic David Golumbia. Yes, crooks and fascists use bitcoin; they also breathe air and use TCP-IP. Yes, they were disproportionately prominent in the early cryptocurrency days; this is no longer the case.

Palmer’s critique hits all the right notes, using all the right language that would under normal circumstances could set off a letter writing campaign of the type that makes most PR departments panic (“Did you hear, our service is being used by – gasp – right-wingers!?”). This necessarily precipitates a deplatforming and groveling public apology, a pattern that, in the recent past, has resulted in the removal of politically radioactive individuals – Alex Jones comes to mind – from web platforms, payment processors and banks alike.

The difference is bitcoin and any cryptocurrency worthy of the name runs on game theory powered by proof-of-work, not politics. It feels nothing and answers to no one. Increasingly, we see other functions – social media, content distribution and monetization, and even entire businesses – adopting a bitcoin-style modality of decentralized operation. These services, too, will have no opinions and no masters.

Designing such systems well is no easy task. Apart from bitcoin itself there are no clear early winners. We can be sure that whatever winds up becoming decentralized PayPal or Twitter will not be cognizant of partisan language or hit pieces from think tanks or news magazines long past their prime. 

Whatever conversations we choose to have in public about these systems, we will conduct them with the knowledge that however angry we get, however loudly we yell, whatever rhetoric we employ, these systems will ignore us, continue to run and continue to be used by people we loathe. One can only hope this makes us more civil with one another.

Dogecoin Co-Founder Says He’s Done with Cryptos, They Don’t ‘Align With His Belief System’

Yahoo Finance 15 July, 2021 - 10:42am

Palmer slammed everything about the industry, from the lack of regulation to the “cult-like,” get-rich-quick schemes and bought influencers, as well as the “powerful cartel of wealthy figures” who control it.

“It doesn’t align with my politics or belief system, and I don’t have the energy to try and discuss that with those unwilling to engage in a grounded conversation,” he tweeted.

Dogecoin was created as a joke — its name is a reference to a popular internet meme, according to Coinbase.

While it has gained incredible traction in the past few months as well as celebrity endorsements, notably Elon Musk, but also Mark Cuban and Snoop Dog, just like any other crypto, it’s extremely volatile. Unlike Bitcoin, where the supply of which is capped 21 million, it doesn’t have the important supply and demand factor embedded in it. Dogecoin currently has 130 billion tokens in circulation and no hard cap on the number of coins that can be produced.

This morning, Doge was at $0.18. down 3.7% in the past 24 hours, according to CoinMarketCap.

Palmer went on to tweet that the cryptocurrency industry “leverages a network of shady business connections, bought influencers and pay-for-play media outlets to perpetuate a cult-like ‘get rich quick’ funnel designed to extract new money from the financially desperate and naive.”

“Financial exploitation undoubtedly existed before cryptocurrency, but cryptocurrency is almost purpose-built to make the funnel of profiteering more efficient for those at the top and less safeguarded for the vulnerable,” he added.

“Cryptocurrency is like taking the worst parts of today’s capitalist system (eg. corruption, fraud, inequality) and using software to technically limit the use of interventions (eg. audits, regulation, taxation) which serve as protections or safety nets for the average person,” he posted.”Lose your savings account password? Your fault. Fall victim to a scam? Your fault. Billionaires manipulating markets? They’re geniuses.”

Palmer ended by saying he applauded “those with the energy to continue asking the hard questions and applying the lens of rigorous skepticism all technology should be subject to.”

New technology can make the world a better place, but not when decoupled from its inherent politics or societal consequences.”

This article originally appeared on GOBankingRates.com: Dogecoin Co-Founder Says He’s Done with Cryptos, They Don’t ‘Align With His Belief System’

Jackson Palmer said cryptocurrency was an 'inherently right-wing, hyper-capitalistic technology built primarily to amplify the wealth of its proponents'.

Dogecoin co-founder Jackson Palmer says bitcoin is "inherently right-wing, hyper-capitalistic" but, really, it's whatever you want it to be, says our columnist.

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Why Bitcoin, Dogecoin, and Etherium Crashed Today | The Motley Fool

The Motley Fool 15 July, 2021 - 10:20am

Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.

Cryptocurrencies are under attack Thursday -- and it was an inside job. On Twitter yesterday, Dogecoin co-creator Jackson Palmer launched a broadside attack on cryptocurrencies in general, deriding the entire industry as "right-wing, hyper-capitalistic technology" that "is controlled by a powerful cartel of wealthy figures."

In 9:45 a.m. trading, the prices of several of the biggest names in cryptocurrency are tumbling:

And that was just the tip of the iceberg. In a 10-part tweet, Palmer laid out his thoughts on why he really hates crypto. Here are a few highlights:

And in general, the whole enterprise is downright "shady" and reflects "the worst parts of today's capitalist system (e.g. corruption, fraud, inequality)." Here -- read the whole diatribe for yourself:

I am often asked if I will "return to cryptocurrency" or begin regularly sharing my thoughts on the topic again. My answer is a wholehearted "no", but to avoid repeating myself I figure it might be worthwhile briefly explaining why here...

Is Jackson right or wrong about the corruption of crypto? Maybe the insiders on Wall Street know -- but I don't. What I do know is that Palmer's broadside just gave powerful ammunition to the forces working to impose new regulations on cryptocurrency.

Case in point: Later Wednesday evening, after Palmer's tweet thread came out, CNBC reported that the IRS is "determined to crack down on tax cheats" and determined to get "a piece of the action" by taking a bigger bite out of cryptocurrency investors' profits.

"New data analytic tools" are being deployed and letters sent to taxpayers suspected of earning profits from cryptocurrency and not reporting them. And if that doesn't work, efforts are in the works to "subpoena centralized crypto exchanges for information about noncompliant U.S. taxpayers." The IRS may even require businesses to report directly to it on any cryptocurrency transactions valued at more than $10,000.  

The IRS is warning crypto investors to take all of this "very seriously by reviewing their tax filings." Today's falling prices on Bitcoin, Ethereum, and Dogecoin suggest they are taking that advice to heart. 

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Dogecoin creator says cryptocurrency is a right-wing 'funnel of profiteering'

CNET 15 July, 2021 - 08:06am

Cryptocurrency is a purpose-built profiteering system funneling cash from the poor to the rich, according to the co-founder of a popular currency. Dogecoin co-creator Jackson Palmer argues that the virtual currency market is the same old grift as the financial sector it's supposed to replace.  

Palmer returned to social media Wednesday for the first time since 2019 to explain why he no longer wants anything to do with the newfangled form of virtual money. "After years of studying it," he tweeted, "I believe that cryptocurrency is an inherently right-wing, hyper-capitalistic technology built primarily to amplify the wealth of its proponents through a combination of tax avoidance, diminished regulatory oversight and artificially enforced scarcity." 

Entertain your brain with the coolest news from streaming to superheroes, memes to video games.

"Despite claims of 'decentralization', the cryptocurrency industry is controlled by a powerful cartel of wealthy figures," said Palmer, "who, with time, have evolved to incorporate many of the same institutions tied to the existing centralized financial system they supposedly set out to replace."

Dogecoin began as a meme-inspired joke in 2013 before becoming one of the most popular alternatives to market leader Bitcoin. Frequently referenced by Tesla founder Elon Musk, Dogecoin hit an all-time value in May. But cryptocurrency remains a roller coaster: Record highs in March for Bitcoin and altcoins like Dogecoin and Ethereum led to a corresponding slump in June.

Palmer argues that cryptocurrency's independence from mainstream financial systems also means it has no systems to protect the less wealthy. "Fall victim to a scam? Your fault," he said. "Cryptocurrency is almost purpose built to make the funnel of profiteering more efficient for those at the top and less safeguarded for the vulnerable... like taking the worst parts of today's capitalist system (eg. corruption, fraud, inequality) and using software to technically limit the use of interventions (eg. audits, regulation, taxation) which serve as protections or safety nets for the average person."

Palmer posted the thread to explain why he no longer wants to be involved in or even discuss cryptocurrency, as he doubts the good faith of those who benefit from the system.

I am often asked if I will “return to cryptocurrency” or begin regularly sharing my thoughts on the topic again. My answer is a wholehearted “no”, but to avoid repeating myself I figure it might be worthwhile briefly explaining why here…

If it is a scam, crypto has some high-profile fans: the likes of Musk and Kim Kardashian West have got involved, Facebook has planned its own currency, Libra, and Spike Lee just narrated an influencer-packed advert for CloudCoin crypto ATMs.

Dogecoin creator blasts crypto as capitalism run amok

Business Insider 15 July, 2021 - 08:05am

"After years of studying it, I believe that cryptocurrency is an inherently right-wing, hyper-capitalistic technology built primarily to amplify the wealth of its proponents through a combination of tax avoidance, diminished regulatory oversight and artificially enforced scarcity," the software engineer said in in a 10-part Twitter thread on Wednesday.

Palmer, who rarely comments on the coin he helped create, also criticized cryptocurrency's supposed and much touted "decentralization." 

"The cryptocurrency industry is controlled by a powerful cartel of wealthy figures who, with time, have evolved to incorporate many of the same institutions tied to the existing centralized financial system they supposedly set out to replace."

He said the industry leverages a "network of shady business connections" that perpetuates a "cult-like 'get rich quick' funnel."

Cryptocurrencies, he said, take the worst parts of today's capitalist system — corruption, fraud, and inequality — and use software to limit regulation, audits, and taxation.

Palmer also lamented the fact that even small criticisms of the space draw the anger of its proponents, and that "good-faith debate" is no longer possible. 

"I applaud those with the energy to continue asking the hard questions and applying the lens of rigorous skepticism all technology should be subject to. New technology can make the world a better place, but not when decoupled from its inherent politics or societal consequences."

In 2013, Palmer along with co-creator Billy Markus created dogecoin as a joke on the wider crypto space. Markus and Palmer didn't intend for dogecoin to be taken seriously and both have left the space and sold their holdings.

But the coin has since exploded in popularity, driven in part by the support of prominent figures such as Elon Musk.

Dogecoin is the eighth-largest cryptocurrency by market value according to CoinGecko, skyrocketing 5,714% in the last 12 months.

Dogecoin co-creator blasts crypto as a scam to help the rich get richer

MarketWatch 14 July, 2021 - 07:59pm

Palmer, who co-created the mock cryptocurrency in 2013 with Billy Markus, took to Twitter on Wednesday to denounce the state of crypto in no uncertain terms:

Far from being a decentralized, libertarian alternative to traditional monetary systems, crypto “is controlled by a powerful cartel of wealthy figures,” he said, who have “evolved to incorporate many of the same institutions tied to the existing centralized financial system they supposedly set out to replace.”

Meanwhile the rich get richer and the most vulnerable investors are exposed to the most risk, he said.

“The cryptocurrency industry leverages a network of shady business connections, bought influencers and pay-for-play media outlets to perpetuate a cult-like ‘get rich quick’ funnel designed to extract new money from the financially desperate and naive,” he continued in a 10-tweet thread. “Financial exploitation undoubtedly existed before cryptocurrency, but cryptocurrency is almost purpose built to make the funnel of profiteering more efficient for those at the top and less safeguarded for the vulnerable.”

Read the full thread here:

In a tweeted response Wednesday, Palmer’s dogecoin co-creator, Markus, conceded “his points are generally valid.”

This isn’t the first time Palmer had railed against cryptocurrencies. After dogecoin reached a market cap of $2 billion in 2017, he wrote in Vice that “something is very wrong,” and that the crypto industry had been hijacked by “scammers and opportunists.”

Both Palmer and Markus stepped away from dogecoin years ago. But while Markus is still active in the crypto world, Palmer is done. In the 2017 Vice article, Palmer said he ended his involvement with dogecoin and crypto in 2015 and donated his proceeds to charity. And don’t ask him about it again — Palmer’s tweet-thread Wednesday began: “I am often asked if I will ‘return to cryptocurrency’ or begin regularly sharing my thoughts on the topic again. My answer is a wholehearted ‘no.'”

Investors may want to pay closer attention to earnings quality metrics when thinking about what to Buy, Hold, and Sell going into second-quarter earnings season.

Dogecoin Creator Says Crypto Is a Scam

Gizmodo 14 July, 2021 - 04:50pm

“After years of studying it, I believe that cryptocurrency is an inherently right-wing, hyper-capitalistic technology built primarily to amplify the wealth of its proponents through a combination of tax avoidance, diminished regulatory oversight and artificially enforced scarcity,” he tweeted out on Wednesday afternoon.

Palmer’s full thread itself is well worth the read, even if you disagree with what he’s saying—and there are going to be plenty that do. One of the many awful traits of the crypto community that Palmer points out is that “even the most modest critique of cryptocurrency will draw smears from the powerful figures in control of the industry,” not to mention the ire of everyday investors terrified of losing it all. Just something worth remembering when those figures inevitably fart out some bad-faith tweets saying Palmer’s just jealous he never cashed in when he had the chance.

The co-creator of dogecoin explains why he doesn't plan to return to crypto: It's 'controlled by a powerful cartel of wealthy figures'

CNBC 14 July, 2021 - 03:52pm

Jackson Palmer, the co-creator of the meme-inspired cryptocurrency dogecoin, made a rare return to Twitter on Wednesday with some harsh words about crypto in general.

"I am often asked if I will 'return to cryptocurrency' or begin regularly sharing my thoughts on the topic again. My answer is a wholehearted 'no,'" Palmer tweeted on Wednesday.

In 2013, Palmer and Billy Markus created dogecoin as a joke based on the "Doge" meme, which portrays a shiba inu dog. Markus and Palmer didn't intend for dogecoin to be taken seriously.

But the coin has recently taken off, and dogecoin is currently one of the top 10 cryptocurrencies by market value. Earlier this year, it hit an all-time high of nearly 74 cents. Despite its recent surge in popularity, Markus and Palmer haven't profited, as they both sold out before dogecoin's meteoric rise.

In his Twitter thread, Palmer criticized those in power in the cryptocurrency space, saying that it is "controlled by a powerful cartel of wealthy figures" who "have evolved to incorporate many of the same institutions tied to the existing centralized financial system they supposedly set out to replace."

Palmer also criticized how crypto is shared and marketed. In another tweet, he alleged that "the cryptocurrency industry leverages a network of shady business connections, bought influencers and pay-for-play media outlets to perpetuate a cult-like 'get rich quick' funnel designed to extract new money from the financially desperate and naive."

Palmer admits this type of "financial exploitation" existed before cryptocurrency, but says he still believes that the crypto industry hurts the "average" people who join it. He also believes it is susceptible to fraud, similar to other cryptocurrency critics.

Supporters of cryptocurrency see things differently. For example, bitcoin, the largest cryptocurrency by market value, was made to be a decentralized, peer-to-peer financial system. It is seen by its holders as a hedge against inflation, among other things.

In response to Palmer's thread, Markus, dogecoin's other co-creator, tweeted that Palmer's "points are generally valid."

"There's a lot of terrible people who are involved in the crypto space, and I completely understand why he would feel negative about it," Markus wrote. "I understand his perspective and we both saw mostly the negative side of all this," he said in another tweet.

Markus has been much more active on social media, despite not currently being involved with dogecoin's development.

"The crypto community can be pretty elitist and not very inclusive, and we wanted to make a community that was more fun, lighthearted and inclusive," Markus previously told CNBC Make It about creating dogecoin. "It worked, and is why the dogecoin community consistently maintains a presence."

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