In today’s Money Morning…best moments from US crypto hearings produce gag reel…here are two ways to leverage cluelessness…there’s a big opportunity here…and more…
There are three different hearings going on right now in Washington, as US politicians from across the political spectrum try to outdo each other in the ‘cluelessness stakes’.
I’ll get to some of the more laughable claims in a bit, but let’s take a look at how the Bitcoin [BTC] price is tracking:
It makes for interesting reading.
Yet to officially break out of that range between US$30,000 and US$40,000, the BTC price briefly flirted with puncturing the US$30,000 support line, then bounced strongly.
In the podcast I mentioned at the start, Ryan Dinse explains how it wasn’t really Amazon hype that triggered the sharp rise in the BTC price, but actually a short squeeze.
Despite whatever the mainstream media decided the story was.
Which brings me to those kooky US politicians and how completely out of touch they are.
Best moments from US crypto hearings produce gag reel
The US politicians I’m about to roast aren’t out of touch because they’re old — I think it’s more that they have limited motivation to try and learn something new.
There are plenty of older crypto types that get it, and that’s a credit to them.
In a few years I expect they will be far wealthier than the older folk that I have to listen to at dinner tables that parrot the ‘scam’ narrative.
From the mind of some of these older US politicians — ‘I don’t know how this here bitcoin works, but I don’t like the sound of it. I’m going to drag whoever runs it up here and give them a piece of my mind.’
The problem is a fundamental misunderstanding of decentralisation — what are they going to do, pull millions of people before the committee to tell them off for something they don’t run, but still like?
Anyway, here are the best bits from the hearings with commentary ranked:
- ‘They’re shipping ‘em around the world because they know these guys can raise hell with our financial system.’ — Senator Jon Tester (Democrat for Montana)
Wrong, completely off base, and this would be hilarious if it wasn’t so worryingly ignorant. Bitcoin miners make their own decisions, and their relocation is not a Chinese plot. Hell, it’s likely to be a good thing in the long run.
- ‘Instead of leaving our financial system at the whims of giant banks, crypto puts the system at the whims of some shadowy faceless group of super coders and miners, which doesn’t sound better to me.’ — Senator Elizabeth Warren (Democrat for Massachusetts)
Warren is at it again here. First of all, is having our financial system run on the whim of banks good? Shadowy? Super-coders? I guess these hooded-up young people who know how computers work need to get their hands on some suits and a landline for Warren to call when she gets worked up.
- ‘There’s nothing democratic or transparent about a shady diffuse network of online funny money… [We need] smart regulations [to protect us] from extortionists [and] their phony populist marketing.’ — Senator Sherrod Brown (Democrat for Ohio)
Oh no. Sherrod, where do I start with this one? First up, there’s no marketing department. Funny money? Have a look at the Fed and your own henhouse. Transparent? It’s all on-chain, maybe you tell me how the Caymans work. Talk to me about Switzerland, Luxembourg, Panama, Seychelles, Isle of Man, Hong Kong, Bahamas, Cyprus, Nauru, Mauritius, Malta, Curacao, Lichtenstein, Samoa, Jersey, and the British Virgin Islands. UBS and Nazi gold, HSBC and cartel money. JPMorgan’s commodity trading. Goldman Sachs’ 1MDB scandal. Nomura and Credit Suisse. Wells Fargo. Australia’s Big Four. Deutsche Bank. These are just the ones we know about. Do you have a grip on any of this?
Here are two ways to leverage cluelessness
There’s a big opportunity here. In fancy language it’s called informational asymmetry.
In more simple language, if you move quickly on crypto you can position yourself for a time when crypto cluelessness gives way to widespread adoption.
Definitely check out that podcast.
Whatever you do, don’t let the out-of-touch US politicians in Washington con you into thinking learning about these things is a waste of time.
Education and a willingness to learn often opens the doors to wealth and a more prosperous future.
Let the intellectually destitute elites sound off as much as they want, while you have the last laugh.
For Money Morning
PS: Lachlann is also the Editorial Analyst at Exponential Stock Investor, a stock tipping newsletter that hunts for promising small-cap stocks. For information on how to subscribe and see what Lachy’s telling subscribers right now, please click here.