My guest this week is Yaya Fanusie, former CIA analyst, author of the audio thriller The Jabbari Lincoln Files, and adjunct senior fellow at the Center for a New American Security.
For the first time, I finally understood something fundamental about BitCoin thanks to your guest. The “move vs. copy” part of discussion is fascinating. From a data management perspective, I view the entire BitCoin system as if it were a single account or wallet that is partitioned into sections for each customer. Likewise if you have a file named “GL2.doc” in a folder on your computer, you are forced to give the copy a different name if housed within the same folder.
One of my co-workers got into bitcoin around 2012. He spent a few thousand dollars, and I'm told that he ended up with over $40 million.
I don't fully understand crypto-currency and it's implications, but I do think that it makes sense to embrace new technologies. At the beginning of 2024, I moved $100,000 of my IRA money into Fidelity's Bitcoin Fund (FBTC). I felt that this was enough money to make some impact, but it was low enough that I could afford to lose all of it (although I would not be happy about that happening). The value doubled so I have taken my original $100,000 investment out, and I still have a little over $100,000 in the fund. My investments have gotten very good returns since I retired in 2018, and Fidelity's semiconductor fund has averaged annual returns close to 30%, but the bitcoin fund has been even better so far.
All of this being said, I also believe that safeguards should be set-up to prevent criminals, terrorists, and other bad actors from using crypto currencies for nefarious purposes.
This was great for me. My overriding question was answered with the comments about the "public ledger." So why did I have that question? Let me explain with gentle criticism of Glenn...
Glenn, why not just name them! The $TRUMP meme coin, and its sidekick MELANIA. Sleazy is the mildest word I can come up with. The reason I had the question -- about what I learned today is the public ledger -- was a comment I heard on a podcast by what I'll call a crypto bro. He said someone bought $1,000,000 worth of the $TRUMP coin immediately upon its release. This person sold a day or two later and reaped a sweet $300,000,000 profit. The hypothesis is that the person acted so quickly that he or she probably had a heads-up. The person sold when the coin was trading in the neighborhood of $75, a level the coin has been nowhere near since. (It's currently at $12.85.)
Did Donald Trump give young Barron a $300,000,000 birthday present? We elected Trump to eliminate the corruption in DC. How can Trump do that when his meme coin is sleazier than any 100 NGO wives?
Poor Elon threw away his good name with half the nation by choosing a side. Trump pulls this meme coin nonsense before taking office, and now he is pushing for a budget that will explode deficit spending to more than offset any DOGE cuts.
I think it's time to throw in the towel on the U.S. Was democracy a failure? Would a peaceful national divorce be a solution? Maybe China, a seemingly serious nation, is the future of the planet. I won't be around long enough to ever know, but I'd bet on that last one.
I would have liked to ask the guest to steel man the argument AGAINST crypto currency. Or more specifically, Bitcoin. With bond prices going up, the US debt going up, and Bitcoin going up, will we see Bitcoin supplant the US dollar. Or, will Bitcoin -- which until recently moved in sympathy with the stock market, acting like not like a currency, but an equity -- dry up and blow away when the next serious economic calamity occurs.
Anyway, today's podcast was super relevant and useful to me.
“Sometimes I call it crypto ‘crappo,’ sometimes I call it ‘crypto s---.’ It’s just ridiculous that anybody would buy this stuff,” Munger, 99, told CNBC’s Becky Quick during a livestream of the event, adding: “It’s totally absolutely crazy, stupid gambling.”
Here's a link to a YouTube video if you want to see Munger make his arguments against cryptocurrencies:
For the first time, I finally understood something fundamental about BitCoin thanks to your guest. The “move vs. copy” part of discussion is fascinating. From a data management perspective, I view the entire BitCoin system as if it were a single account or wallet that is partitioned into sections for each customer. Likewise if you have a file named “GL2.doc” in a folder on your computer, you are forced to give the copy a different name if housed within the same folder.
One of my co-workers got into bitcoin around 2012. He spent a few thousand dollars, and I'm told that he ended up with over $40 million.
I don't fully understand crypto-currency and it's implications, but I do think that it makes sense to embrace new technologies. At the beginning of 2024, I moved $100,000 of my IRA money into Fidelity's Bitcoin Fund (FBTC). I felt that this was enough money to make some impact, but it was low enough that I could afford to lose all of it (although I would not be happy about that happening). The value doubled so I have taken my original $100,000 investment out, and I still have a little over $100,000 in the fund. My investments have gotten very good returns since I retired in 2018, and Fidelity's semiconductor fund has averaged annual returns close to 30%, but the bitcoin fund has been even better so far.
All of this being said, I also believe that safeguards should be set-up to prevent criminals, terrorists, and other bad actors from using crypto currencies for nefarious purposes.
Cat and mouse!
This was great for me. My overriding question was answered with the comments about the "public ledger." So why did I have that question? Let me explain with gentle criticism of Glenn...
Glenn, why not just name them! The $TRUMP meme coin, and its sidekick MELANIA. Sleazy is the mildest word I can come up with. The reason I had the question -- about what I learned today is the public ledger -- was a comment I heard on a podcast by what I'll call a crypto bro. He said someone bought $1,000,000 worth of the $TRUMP coin immediately upon its release. This person sold a day or two later and reaped a sweet $300,000,000 profit. The hypothesis is that the person acted so quickly that he or she probably had a heads-up. The person sold when the coin was trading in the neighborhood of $75, a level the coin has been nowhere near since. (It's currently at $12.85.)
Did Donald Trump give young Barron a $300,000,000 birthday present? We elected Trump to eliminate the corruption in DC. How can Trump do that when his meme coin is sleazier than any 100 NGO wives?
Poor Elon threw away his good name with half the nation by choosing a side. Trump pulls this meme coin nonsense before taking office, and now he is pushing for a budget that will explode deficit spending to more than offset any DOGE cuts.
I think it's time to throw in the towel on the U.S. Was democracy a failure? Would a peaceful national divorce be a solution? Maybe China, a seemingly serious nation, is the future of the planet. I won't be around long enough to ever know, but I'd bet on that last one.
I would have liked to ask the guest to steel man the argument AGAINST crypto currency. Or more specifically, Bitcoin. With bond prices going up, the US debt going up, and Bitcoin going up, will we see Bitcoin supplant the US dollar. Or, will Bitcoin -- which until recently moved in sympathy with the stock market, acting like not like a currency, but an equity -- dry up and blow away when the next serious economic calamity occurs.
Anyway, today's podcast was super relevant and useful to me.
Cryptocurrencies are controversial. Some people love them, but others hate them.
Eric Adams took his first paycheck, after becoming mayor of New York, in cryptocurrency:
https://www.nyc.gov/office-of-the-mayor/news/041-22/mayor-adams-receive-first-paycheck-cryptocurrency
The late Charlie Munger, when he was vice chair of Berkshire Hathaway, condemned cryptocurrencies in no uncertain terms:
https://www.cnbc.com/2023/02/16/billionaire-charlie-munger-cryptocurrency-is-crazy-stupid-gambling.html
Here's an excerpt:
“Sometimes I call it crypto ‘crappo,’ sometimes I call it ‘crypto s---.’ It’s just ridiculous that anybody would buy this stuff,” Munger, 99, told CNBC’s Becky Quick during a livestream of the event, adding: “It’s totally absolutely crazy, stupid gambling.”
Here's a link to a YouTube video if you want to see Munger make his arguments against cryptocurrencies:
https://www.youtube.com/watch?v=Uf7OZld47K4
Place your bets and take your chances.
I agree with Warren Buffet, it’s rat poison. This guy’s explanation sounds like snake oil selling.