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Mr. Gensler’s central claim is simple: For all their novel attributes, most cryptocurrencies are securities, like stocks or other investment products. That means the developers who issue cryptocurrencies must register with the U.S. government and disclose information about their plans.

Even before FTX’s collapse, the debate was reaching an inflection point: A federal judge is expected to rule in the coming months in a lawsuit brought by the S.E.C. that charges the cryptocurrency issuer Ripple with offering unregistered securities. A victory for the government would strengthen Mr. Gensler’s hand, establishing a precedent that could pave the way for more lawsuits against crypto companies.

A former Goldman Sachs partner, Mr. Gensler became one of the most aggressive financial regulators in Washington after the 2008 recession. As chairman of the Commodity Futures Trading Commission, an agency that regulates the financial markets, he helped carry out the 2010 Dodd-Frank Act, which aimed to protect consumers and rein in Wall Street.

when Mr. Gensler took over the S.E.C., the crypto industry hailed him as an enthusiast who understood the technology’s potential. Bitcoin “is in good hands,” one venture investor tweeted.

But it soon became clear that Mr. Gensler would take a hard-line approach. In July 2021, he met with a group of industry representatives, including the leader of the Blockchain Association, a prominent crypto trade group. He bluntly informed her that most of the organization’s members were probably violating federal rules, two people familiar with the meeting said.

Rather than devise new rules for crypto, Mr. Gensler has focused on enforcing the current ones as broadly as possible.

A few days later, Mr. Gensler called crypto “the Wild West” while speaking at a national security conference in Washington.

Behind closed doors, Mr. Gensler has been equally aggressive. “I’ve heard about other groups going in and getting in arguments,” said Perianne Boring, the founder of the Chamber of Digital Commerce, a crypto advocacy group. “You want to have a fight, you can have one.”

In crypto circles, mentioning Mr. Gensler’s name elicits quivers of fury. A Twitter account for the crypto company LBRY once called him “a demon wearing human flesh.”

The basis for Mr. Gensler’s claim that cryptocurrencies are securities is a legal analysis known as the Howey Test, which the Supreme Court outlined in 1946. Under the framework, a financial product is deemed a security when it offers the chance to invest in a “common enterprise” with the expectation of profiting from the efforts of others.

FTX’s collapse has unleashed a new level of scrutiny. Screenshots of Mr. Gensler’s public meeting schedule, which show multiple sessions with Mr. Bankman-Fried, have circulated on Twitter, where crypto fans who once said Mr. Gensler was overly aggressive have now accused him of cozying up to a criminal.

“If you don’t like him, you don’t like the current S.E.C., then of course you’re just going to blame him, regardless of the facts,” Mr. Reiners said. “If Sam Bankman-Fried tried to get a meeting with the S.E.C., and Gary Gensler said absolutely not, I’ll never talk to you, the Republicans would’ve gone ballistic prior to the collapse.”

“Why we often separate these things out is so that the public is better protected about the inherent conflicts,” he said. “It’s really important to make sure that this field comes in, gets registered, gets regulated.”

In public remarks shortly after FTX imploded, Mr. Gensler argued that too many crypto companies performed multiple financial roles at the same time — like running an exchange and making trades, an apparent reference to the close relationship between FTX and Alameda.

The outcome will also draw attention in Congress, where a slate of crypto-related bills was introduced this year. When Mr. Gensler testified in front of the Senate Banking Committee in September, he was grilled by Republican senators, who said the S.E.C. was offering insufficient legal guidance to crypto companies that wanted to comply with federal law.“Not liking the answer from the S.E.C.,” he shot back, “doesn’t mean there isn’t guidance.”

If all of this sounds familiar, it’s because we basically saw this same environmental dynamic play out several years ago with tech’s last big obsession: Crypto and web3. In that case, Bitcoin emerged as the industry’s obvious environmental sore spot due to the vast amounts of energy needed to mine coins in its proof of work model. Some estimates suggest Bitocin alone requires more energy every year than Norway’s annual electricity consumption.

rs of criticism from environmental activists however led the crypto industry to make some changes. Ethereum, the second largest currency on the blockchain, officially switched last year to a proof of stake model which supporters claim could reduce its power usage by over 99%. Other smaller coins similarly were designed with energy efficiency in mind. In the grand scheme of things, large language models are still in their infancy and it’s far from certain how its environmental report card will play out.

While small businesses have had to adapt reluctantly to a cashless world, many tech firms, banks and credit card companies have pushed for one, said Jay Zagorsky, a professor at the Questrom School of Business at Boston University.

“The economy is bifurcating, sort of splitting in two parts, and there’s one part that’s taking a beating,” he said.

For many people paying for things digitally is a convenience, but for the growing segment of the population in poverty, “going cashless is quite expensive,” he said. Hidden fees, such as for failing to keep a minimum balance in an account or on a prepaid card, can be debilitating.“If you can’t keep $10 to $15 on a credit card — that’s a great sum of money for some people,” he said.

Cryptocurrency advocates like Catheryne Nicholson, the chief executive of BlockCypher, have proposed Bitcoin as a solution to problems in the existing financial system, such as getting loans to the millions of people who do not have bank accounts.

“The designs don’t just happen out of happenstance,” he said. “You can learn so much about our culture from just learning about what appears on our coins.”

But Dr. Kemmers said that aside from their symbolism, she was “not that optimistic about the long-term future of coins.” With one exception: “Commemorative coins might be something that will last.”

the major transactions currently conducted with crypto may be remittances from rich countries to developing economies and emerging markets, and capital flight in the other direction. In both cases, the parties’ desire to avoid exchange controls and taxes implies a premium on anonymity.

On the other hand, Vitalik Buterin, the co-founder of the ethereum blockchain and one of the crypto industry’s most influential thinkers, has argued that the real lesson of FTX’s collapse is that crypto needs to return to its decentralised roots

The problem with having only decentralised exchanges is their inefficiency compared with, say, Visa and Mastercard, or normal bank transactions in advanced economies.

It is certainly possible that ways to duplicate the speed and cost advantages of centralised exchanges eventually will be found. But this seems unlikely in the foreseeable future, making it hard to see why anyone not engaged in tax and regulatory evasion (not to mention crime) would use crypto

Perhaps regulators should push toward decentralised equilibrium by requiring that exchanges know the identity of anyone with whom they transact, including on the blockchain. Although this may sound innocent, it would make it rather difficult to trade on the anonymous blockchain on behalf of an exchange’s customers.

rather than simply banning crypto intermediaries, many countries may ultimately try to ban all crypto transactions, as China and a handful of developing economies have already done. Making it illegal to transact in bitcoin, ethereum and most other crypto would not stop everyone, but it would certainly constrain the system. Just because China was among the first does not make the strategy wrong, especially if one suspects that the main transactions relate to tax evasion and crime, akin to large denomination paper currency notes such as the $100 bill.

Eventually, many other countries are likely to follow China’s lead. But it is unlikely that the most important player, the US, with its weak and fragmented crypto regulation, will undertake a bold strategy any time soon. FTX may be the biggest scandal in crypto so far; sadly, it is unlikely to be the last.

Melissa Carrion, a professor at the University of Nevada, Las Vegas, who studies the rhetoric of health and medicine, spoke to 50 mothers who had refused one or more vaccines for their children for a study published in 2017.“Across the board, every single one of them gave some variation of the advice that a mother ‘should do her own research,’” she said in a phone interview. “It was this kind of worldview that was less about the result of the research than the individual process of doing it themselves.”

One of the enticing aspects of cryptocurrencies, which pose an alternative to traditional financial institutions, is that expertise is available to anyone who wants to claim it. There are people who’ve gotten rich, people who know a lot about blockchains and people who believe in the liberating power of digital currencies. There is some recent institutional interest. But nobody’s been around very long, which makes the idea of “researching” your way to prosperity feel more credible.

Cryptocurrency trading, in contrast to medicine, might represent DYOR in pure no-expert form. Virtually everyone is operating in a beginners’ bubble, whether they’re worried about it or not, betting with and against one another, in hopes of making money.

ere, so-called research materials are often limited to a white paper, marketing materials and testimonials, the “due diligence” posts of others, the reputations of a currency’s creators and the general sentiment of other possible buyers. Will they buy-in, too? Will we take this coin to the moon?In that way — the momentum of a group — crypto investing isn’t altogether distinct from how people have invested in the stock market for decades. Though here it is tinged with a rebellious, anti-authoritarian streak: We’re outsiders, in this together; we’re doing something sort of ridiculous, but also sort of cool. Though DYOR may be used to foster a sense of community, what it actually describes is participation in a market.

A year ago, Luna boosters (and a few skeptics) in online forums offered the same advice to gathered audiences of potential buyers reading their posts, looking for tips: just DYOR. Thousands invested in both Luna and TerraUSD. The price of Luna climbed from around $5 to over $100. After the crash, at least one Reddit user suggested that the situation highlighted the “limit” of DYOR; the coin’s price had fallen to nearly zero.

Socially, cryptocurrency is a coordination game; people want to have the coin that other people want to have, and some sort of abstract technical equivalence doesn’t make one cryptocurrency a good substitute for another. Social acceptance—legitimacy—is what makes a cryptocurrency valuable, and you can’t just copy the code for that.

A thing that worked exactly like Bitcoin but didn’t have Bitcoin’s lineage—didn’t descend from Satoshi’s genesis block and was just made up by some copycat—would have the same technology but none of the value.

Here’s another generalization of Bitcoin: Satoshi made up an arbitrary token that trades electronically for some price. The price turns out to be high and volatile. The price of an arbitrary token is … arbitrary?

it’s very interesting as a matter of finance theory. Modern portfolio theory demonstrates that adding an uncorrelated asset to a portfolio can improve returns and reduce risk.

To the extent that the price of Bitcoin 1) mostly goes up, though with lots of ups and downs along the way, and 2) goes up and down for reasons that are arbitrary and mysterious and not tied to, like, corporate earnings or the global economy, then Bitcoin is interesting to institutional investors.

In practice, it turns out that the price of Bitcoin is pretty correlated with the stock market, especially tech stocks

Bitcoin hasn’t been a particularly effective inflation hedge: Its price rose during years when US inflation was low, and it’s fallen this year as inflation has increased.

The right model of crypto prices might be that they go up during broad speculative bubbles when stock prices go up, and then they go down when those bubbles pop. That’s not a particularly appealing story for investors looking to diversify.

one important possibility is that the first generalization of Bitcoin, that an arbitrary tradeable electronic token can become valuable just because people want it to, permanently broke everyone’s brains about all of finance.

Before the rise of Bitcoin, the conventional thing to say about a share of stock was that its price represented the market’s expectation of the present value of the future cash flows of the business.

But Bitcoin has no cash flows; its price represents what people are willing to pay for it. Still, it has a high and fluctuating market price; people have gotten rich buying Bitcoin. So people copied that model, and the creation of and speculation on pure, abstract, scarce electronic tokens became a big business.

But the legal wrangling to just get the courts to treat crypto as a set of speculative instruments regulated under securities law made the law moot

In May of 2022, a year after Gensler began trying to do something about Terra/Luna, Kwon’s scheme blew up. In a comically-too-late-to-matter gesture, an appeals court then said that the SEC had the right to compel information from Kwon’s now-bankrupt scheme. It is absolute lunacy that well-settled law, like the ability for the SEC to investigate those in the securities business, is now being re-litigated.

many crypto ‘enthusiasts’ watching Gensler discuss regulation with his predecessor “called for their incarceration or worse.”

it wasn’t just the courts who were an impediment. Gensler wasn’t the only cop on the beat. Other regulators, like those at the Commodities Futures Trading Commission, the Federal Reserve, or the Office of Comptroller of the Currency, not only refused to take action, but actively defended their regulatory turf against an attempt from the SEC to stop the scams.

Behind this was the fist of political power. Everyone saw the incentives the Senate laid down when every single Republican, plus a smattering of Democrats, defeated the nomination of crypto-skeptic Saule Omarova in becoming the powerful bank regulator at the Comptroller of the Currency

Instead of strong figures like Omarova, we had a weakling acting Comptroller Michael Hsu at the OCC, put there by the excessively cautious Treasury Secretary Janet Yellen. Hsu refused to stop bank interactions with crypto or fintech because, as he told Congress in 2021, “These trends cannot be stopped.”

It’s not just these regulators; everyone wanted a piece of the bureaucratic pie. In March of 2022, before it all unraveled, the Biden administration issued an executive order on crypto. In it, Biden said that virtually every single government agency would have a hand in the space.

That’s… insane. If everyone’s in charge, no one is.

And behind all of these fights was the money and political prestige of some most powerful people in Silicon Valley, who were funding a large political fight to write the rules for crypto, with everyone from former Treasury Secretary Larry Summers to former SEC Chair Mary Jo White on the payroll.

(Even now, even after it was all revealed as a Ponzi scheme, Congress is still trying to write rules favorable to the industry. It’s like, guys, stop it. There’s no more bribe money!)

Moreover, the institution Gensler took over was deeply weakened. Since the Reagan administration, wave after wave of political leader at the SEC has gutted the place and dumbed down the enforcers. Courts have tied up the commission in knots, and Congress has defanged it

Under Trump crypto exploded, because his SEC chair Jay Clayton had no real policy on crypto (and then immediately went into the industry after leaving.) The SEC was so dormant that when Gensler came into office, some senior lawyers actually revolted over his attempt to make them do work.

In other words, the regulators were tied up in the courts, they were against an immensely powerful set of venture capitalists who have poured money into Congress and D.C., they had feeble legal levers, and they had to deal with ‘crypto enthusiasts' who thought they should be jailed or harmed for trying to impose basic rules around market manipulation.

The bottom line is, Gensler is just one regulator, up against a lot of massed power, money, and bad institutional habits. And we as a society simply made the choice through our elected leaders to have little meaningful law enforcement in financial markets, which first became blindingly obvious in 2008 during the financial crisis, and then became comical ten years later when a sector whose only real use cases were money laundering

, Ponzi scheming or buying drugs on the internet, managed to rack up enough political power to bring Tony Blair and Bill Clinton to a conference held in a tax haven billed as ‘the future.’

It took a few years, but New Dealers finally implemented a workable set of securities rules, with the courts agreeing on basic definitions of what was a security. By the 1950s, SEC investigators could raise an eyebrow and change market behavior, and the amount of cheating in finance had dropped dramatically.

By 1935, the New Dealers had set up a new agency, the Securities and Exchange Commission, and cleaned out the FTC. Yet there was still immense concern that Roosevelt had not been able to tame Wall Street. The Supreme Court didn’t really ratify the SEC as a constitutional body until 1938, and nearly struck it down in 1935 when a conservative Supreme Court made it harder for the SEC to investigate cases.

Institutional change, in other words, takes time.

It’s a lesson to remember as we watch the crypto space melt down, with ex-billionaire Sam Bankman-Fried

It’s not like perfidy in crypto was some hidden secret. At the top of the market, back in December 2021, I wrote a piece very explicitly saying that crypto was a set of Ponzi schemes. It went viral, and I got a huge amount of hate mail from crypto types

one of the more bizarre aspects of the crypto meltdown is the deep anger not just at those who perpetrated it, but at those who were trying to stop the scam from going on. For instance, here’s crypto exchange Coinbase CEO Brian Armstrong, who just a year ago was fighting regulators vehemently, blaming the cops for allowing gambling in the casino he helps run.

FTX.com was an offshore exchange not regulated by the SEC. The problem is that the SEC failed to create regulatory clarity here in the US, so many American investors (and 95% of trading activity) went offshore. Punishing US companies for this makes no sense.

3) Nuclear capabilities have been provenA series of successful missile tests have demonstrated the regime's ability to develop nuclear weapons, each one more seemingly more sophisticated than the last. And despite the bellicose rhetoric from the US and Donald Trump, North Korea has managed to consistently conduct its missile tests with no real retaliation or repercussions, barring sanctions. Image copyright EPA Image caption South Korea's President Moon wants more engagement with the North So in a sense, Kim Jong Un isn't losing anything by negotiating with South Korea.

In summary...Let's be realistic. Kim Jong Un isn't desperate yet. Sanctions and a weaker economy aren't going to have the regime discarding its nuclear goals. And there are still plenty of ways for it to make money, including via the latest asset class to hit international markets - cryptocurrencies.But it IS possible to see why North Korea may be more inclined to head to the negotiating table - especially with South Korea which has already said it may consider removing some sanctions temporarily during next month's Winter Olympics.

Bukele in subsequent messages on Twitter noted that Bitcoin could be "the fastest growing way to transfer 6 billion dollars a year in remittances." He said that a big chunk of those money transfers were currently lost to intermediaries and with Bitcoin more than a million low-income families could benefit.

He also said 70% of El Salvador's population does not have a bank account and works in the informal economy. Bitcoin could improve financial inclusion, he said.

Beady-eyed readers will note that most of this stuff, apart from Terra-Luna, is in the “on top of” category and not actually on-chain tech. DeFi exchanges and lending protocols have continued to whir even as the enterprises more akin to normal businesses have imploded one by one. But the collapse of these enterprises could imperil the underlying tech by taking out chunks of its value, making the chains more exposed to would-be attackers and pushing miners or stakers to switch off their machines

The value of on-chain activity and tokens is self-reinforcing. The more people that use DeFi, the more valuable Ethereum becomes. The higher the price of ether, the higher the hurdle to attack the blockchain and the more confidence people will have that blockchains will endure

This also works in reverse. The more people shy away from crypto out of fear, the less secure it becomes.

The total market cap of cryptocurrencies is currently $820bn. That is 70% below the peak a year ago, but still high compared with most of crypto’s history.

Many more layers—such as a major stablecoin, big businesses or perhaps other on-chain protocols—would have to unravel to take crypto’s value back to the levels at which it traded just three or four years ago

Although fewer people will use crypto as a result of the ftx collapse, it is very hard to imagine the number will be small enough to take its value to zero. ■

To take out crypto entirely would require killing the underlying blockchain layers. They could either give way first, kicking the stool out from underneath everything else. Or the industry could unravel from the top down, layer by layer like a knitted scarf.

how the industry works. At crypto’s base are blockchains, like Bitcoin and Ethereum, which record transactions verified by computers, a process incentivised by the issuance of new tokens. The Ethereum blockchain validates lines of code, which has made it possible for people to issue their own tokens or build applications

Major chains and a handful of Ethereum-based tokens, like stablecoins, account for about 90% of cryptocurrency value. Big businesses have been built on top of this world, including exchanges, investment funds and lending platforms.

The death of ftx, an exchange declared bankrupt on November 11th after a spectacular blow-up, will encourage some people to turn their attention elsewhere. What would have to happen for everyone to give up?

It is the conflation of virtue with commerce.

Where did this ideology come from? An exceptional period of low interest rates and excess liquidity provided the fertile soil for fantastical dreams to flourish.

Cryptocurrency is the most ideal vessel of these impulses. A speculative asset with a tenuous underlying predetermined value provides a blank slate that meaning can be imposed onto

Anger after the 2008 global financial crisis created a receptivity to radical economic solutions, and disappointment with traditional politics displaced social ambitions onto the world of commerce.

The hothouse of Covid’s peaks turbocharged all these impulses as we sat bored in front of screens, fueled by seemingly free money.

The unwinding of magical thinking will dominate this decade in painful but ultimately restorative ways — and that unwinding will be most painful to the generation conditioned to believe these fantasies.

Pervasive consumer-facing technology allowed individuals to believe that the latest platform company or arrogant tech entrepreneur could change everything.

illusory and ridiculous promises share a common anti-establishment sentiment fueled by a technology that most of us never understood. Who needs governments, banks, the traditional internet or homespun wisdom when we can operate above and beyond?

Mainstream financial markets came to manifest these same tendencies, as magical thinking pervaded the wider investor class. During a period of declining and zero interest rates, mistakes and mediocrities were obscured or forgiven, while speculative assets with low probabilities of far-off success inflated in value enormously.

For an extended period, many investors bought the equivalent of lottery tickets. And many won.

The real economy could not escape infection. Companies flourished by inflating their scope and ambition to feed the desire for magical thinking.

Most broadly, many corporations have come to embrace broader social missions in response to the desire of younger investors and employees to use their capital and employment as instruments for social change.

Another manifestation of magical thinking is believing that the best hope for progress on our greatest challenges — climate change, racial injustice and economic inequality — are corporations and individual investment and consumption choices, rather than political mobilization and our communities.

Every business problem, I am told, can be solved in radically new and effective ways by applying artificial intelligence to ever-increasing amounts of data with a dash of design thinking. Many graduates coming of age in this period of financial giddiness and widening corporate ambition have been taught to chase these glittery objects with their human and financial capital instead of investing in sustainable paths — a habit that will be harder to instill at later ages.

The fundamentals of business have not changed merely because of new technologies or low interest rates. The way to prosper is still by solving problems in new ways that sustainably deliver value to employees, capital providers and customers.

What comes next? Hopefully, a revitalization of that great American tradition of pragmatism will follow. Speculative assets without any economic function should be worth nothing. Existing institutions, flawed as they are, should be improved upon rather than being displaced

Corporations are valuable socially because they solve problems and generate wealth. But they should not be trusted as arbiters of progress and should be balanced by a state that mediates political questions

Trade-offs are everywhere and inescapable. Navigating these trade-offs, rather than ignoring them, is the recipe for a good life.

Digital art: The latest fad in crypto is a bitcoin “ordinal,” digital art—or anything else—virtually inscribed on a fraction of a bitcoin in the digital ledger known as the blockchain.

The sudden demand supports bitcoin’s value, in the same way that shopping in bitcoin would. I don’t understand why anyone would pay a cent, let alone real money, to inscribe art in the bitcoin blockchain, but hey, whatever floats your boat. 

The rise in small bitcoin transactions also shows just how useless it is as a currency, and why it’s nonsensical to think bitcoin could ever be used as real money. The median fee leapt to more than $5 over the past week, even as transaction sizes plunged, an insane cost to pay for something invented as a payment method.

Crime: I was tempted a few years ago by the idea that the value of crypto could be underpinned by genuine transactions that need to avoid the financial system: buying illegal drugs; money laundering; avoiding sanctions; anonymous (but legal) pornography purchases; terrorist finance; and ransomware. 

Bitcoin’s moves over the past three years have been much closer to the S&P 500 than to gold or inflation. But stocks are an investment in real assets that pay dividends, while bitcoin produces nothing.

There was a time when savers in countries with dodgy currencies and bad governments would buy bitcoin or other crypto to escape devaluation and avoid capital controls. But the rise of stablecoins allows these savers to buy digital dollars without the pain of trying to open offshore bank accounts, so they have no need for other cryptocurrencies

Gambling: Crypto offers a store of volatility more than a store of value. Its volatility makes it an excellent way to bet, and the pretense that it is an investment asset gives speculators cover; it sounds much better to say you are a crypto trader than that you just bet $100,000 at the track.

Basing the value of an asset on speculation is risky, because the value depends on everyone else betting that it has value. But so long as the merry-go-round continues, it looks like it has value, and decentralized finance, or DeFi, provides the infrastructure for speculation in the language of Wall Street.

Digital gold: When it became clear that bitcoin was useless as a currency, its backers switched to claiming that it is a store of value, with its maximum issuance offering protection against the money-printing tendencies of the Federal Reserve. The argument was tested to destruction over the past two years. Inflation was last below the Fed’s 2% target in February 2021, when one bitcoin cost close to $50,000. By the time inflation peaked in June last year the price had collapsed to $20,000, the opposite of what it should have done.

Lots of that was going on, and Binance has paid the price for helping. Bitcoin isn’t a particularly good way to hide from the cops, anyway, as repeated police busts have demonstrated. Crypto has to clean up its act, so basing its value on illegal transactions no longer makes sense.

Bitcoin has failed to live up to its original promise of being cheap online cash, but crypto keeps on reinventing itself. It’s so technically satisfying that it must be the solution to something, but quite what remains a mystery.

the need for regulation to maintain the reliability of essential aspects of the economy like electricity supply and the monetary system.

Which is why I’m calling the modern American right antisocial — because its members reject any policy that relies on social cooperation, and they want us to return instead to Hobbes’s dystopian state of nature

why Republicans have become fanatics about cryptocurrency, to the extent that one Senate candidate has defined his position as being “pro-God, pro-family, pro-Bitcoin.” The answer, I’d argue, is that Bitcoin plays into a fantasy of self-sufficient individualism, of protecting your family with your personal AR-15, treating your Covid with an anti-parasite drug or urine and managing your financial affairs with privately created money, untainted by institutions like governments or banks.

In the end, none of this will work. Government exists for a reason. But the right’s constant attacks on essential government functions will take a toll, making all of our lives nastier, more brutish and shorter.

More than 10 police personnel arrived at the house in the Sydney suburb of Gordon at about 1.30pm. Two police staff wearing white gloves could be seen from the street searching the cupboards and surfaces of the garage. At least three more were seen from the front door.

The Australian Federal police said in a statement that the raids were not related to the bitcoin claims. “The AFP can confirm it has conducted search warrants to assist the Australian Taxation Office at a residence in Gordon and a business premises in Ryde, Sydney. This matter is unrelated to recent media reporting regarding the digital currency bitcoin.”

a widely held theory, known as the “great moderation,” that suggested that major economic crises were a thing of the past, thanks to certain systemic changes in the way developed nations ran their economies. The theory was backed by leading economists and central bankers. Asset-backed derivatives were, ultimately, a bet on the great moderation.

The contrast with Bitcoin is stark. The Bitcoin bubble rests on no plausible premise.

For a while, Bitcoin was used for transactions that people wanted to keep secret from government authorities, like drug deals. It soon became apparent, however, that if authorities wanted to track these transactions, they could.

the new claim is that Bitcoin is a “store of value” and that its price reflects its inherent scarcity. (By design, no more than 21 million Bitcoins can be created.)

If Bitcoin is a “store of value,” then asset prices are entirely arbitrary. As the proliferation of cryptocurrencies has shown, nothing is easier than creating a scarce asset.

Suppose, more plausibly, that Bitcoin has no underlying value and will eventually become worthless. According to the efficient market hypothesis, financial markets will correctly estimate the true value of Bitcoin and will drive the price to zero immediately. Advertisement Continue reading the main story But that hasn’t happened either.

we must not lose sight of a more fundamental — and more worrisome — development: A financial product with a purely arbitrary value has been successfully introduced in the world’s most sophisticated financial markets.

But environmentalists say that mining is still a cause for concern particularly because miners will go wherever electricity is cheapest and that may mean places that use coal. According to Cambridge, China has the most bitcoin mining of any country by far. While the country has been slowly moving toward renewable energy, about two-thirds of its electricity comes from coal.

A single transaction of bitcoin has the same carbon footprint as 680,000 Visa transactions or 51,210 hours of watching YouTube, according to the site.

“Computers and smartphones have much larger carbon footprints than typewriters and telegraphs. Sometimes a technology is so revolutionary and important for humanity that society accepts the tradeoffs,” wrote investor Tyler Winklevoss on Twitter.

Vitalik Buterin, the computer scientist who invited ethereum, told IEEE Spectrum that mining cryptocurrency can be “a huge waste of resources, even if you don’t believe that pollution and carbon dioxide are an issue”, Buterin said. “There are real consumers – real people – whose need for electricity is being displaced by this stuff.”

On Monday, the platform went dark after a hacker took over the accounts of 178 users, including Torba and the Republican congresswoman Marjorie Taylor Greene.

Gab, a Twitter-like website promoted by Torba as a bastion of free speech, has long been a forum of last resort for extremists and conspiracy theorists who have been banned on other online platforms. It attained worldwide notoriety in 2018 when a user, Robert Bowers, wrote on the site that he was “going in”, shortly before allegedly entering the Tree of Life synagogue in Pittsburgh, Pennsylvania, and killing eleven people.

The 2017 share offering, for example, required a minimum investment of $199.10, and rewarded investors who contributed a greater amount with “perks”. Users who invested $200 could display a “Gab investor badge” on the site. The badges corresponded with a tag in the database, which allowed investors to be looked at in detail.

The leaked files contained what appears to be a database of over 4.1 million registered users on the site and tags identifying subscribers as “investors”, “verified” users and “pro” users.

Some of the people associated with investors’ accounts had high-profile jobs and public roles, while spewing hate and extremist beliefs online.

The data breach also appears to offer some insight into users tagged as “verified” by Gab, which according to the platform’s own explanation means that they have completed a verification process that includes matching their display name to a government ID.

And it appears to include a list of users registered as “pros”, which allows users to access additional features and a badge at a price starting at $99 year. The database indicates over 18,000 users had paid to be pro users at the time of the breach. Nearly 4,000 users were flagged as donors to Gab’s repeated attempts to attract voluntary gifts from users.

Direct messages included in the leak appear to show close communication between Torba and a major QAnon influencer who is labeled a Gab investor, seemingly reinforcing the CEO’s public efforts to make Gab a home for adherents to the QAnon conspiracy theory, which helped fuel the 6 January attack on the nation’s Capitol.

According to Wired, the data exposed in the apparent hack was sourced by a hacker who had found a security vulnerability in the site.

“Gab was negligent at best and malicious at worst” in its approach to security, she added. “It is hard to envision a scenario where a company cared less about user data than this one.”

"One of the most common requests we receive from customers is to be able to trade more assets on our platform," Coinbase said in a blog post Tuesday.

"We will make a separate announcement if and when this support is added," the company said.

But Musk is cheering the dogecoin comeback. Following the Coinbase announcement, Musk resurfaced a tweet of his from last July that showed a gigantic cloud with a dog's face on it and the text "dogecoin standard" that was approaching a landscape labeled "global financial system."Enter your email to receive CNN's nightcap newsletter. "close dialog"We read all day so you don’t have to.Get our nightly newsletter for all the top business stories you need to know.Please enter aboveSign me upBy subscribing you agree to ourprivacy policy.Success! Thanks for signing up for the CNN Business Nightcap newsletter."close dialog"/* effects for .bx-campaign-1334631 *//* custom css .bx-campaign-1334631 *//* custom css from creative 52221 */@keyframes bx-anim-1334631-spin { 100% { transform: rotate(360deg); }}/* rendered styles .bx-campaign-1334631 */.bxc.bx-campaign-1334631.bx-active-step-1 .bx-creative:before {min-height: 240px;}.bxc.bx-campaign-1334631.bx-active-step-1 .bx-creative {border-color: #00c59e;border-style: none;background-size: contain;background-color: #00c59e;}.bxc.bx-campaign-1334631.bx-active-step-1 .bx-creative> *:first-child {width: 780px;padding: 18px;vertical-align: middle;}@media all and (max-width: 736px) {.bxc.bx-campaign-1334631.bx-active-step-1 .bx-creative> *:first-child {width: 340px;padding: 18px 5px;}}.bxc.bx-campaign-1334631.bx-active-step-1 .bx-close {stroke: rgb(0, 0, 0);stroke-width: 1.5px;}@media all and (max-width: 736px) {.bxc.bx-campaign-1334631.bx-active-step-1 .bx-close {width: 30px;height: 30px;padding: 0 0 10px 10px;}}.bxc.bx-campaign-1334631 .bx-group-1334631-3EEWyi6 {width: 310px;text-align: left;}@media all and (max-width: 736px) {.bxc.bx-campaign-1334631 .bx-group-1334631-3EEWyi6 {text-align: center;}}.bxc.bx-campaign-1334631 .bx-element-1334631-GCtdzI1 {width: 290px;}@media all and (max-width: 736px) {.bxc.bx-campaign-1334631 .bx-element-1334631-GCtdzI1 {width: 230px;}}.bxc.bx-campaign-1334631 .bx-element-1334631-GCtdzI1> *:first-child {alt: CNN business Nightcap;}.bxc.bx-campaign-1334631 .bx-group-1334631-ZEoAbMC {width: 380px;padding: 15px 0 0 10px;text-align: left;}@media all and (max-width: 736px) {.bxc.bx-campaign-1334631 .bx-group-1334631-ZEoAbMC {width: 300px;padding: 18px 0 0;text-align: center;}}.bxc.bx-campaign-1334631 .bx-element-1334631-3bKsKxs {width: 100%;}@media all and (max-width: 736px) {.bxc.bx-campaign-1334631 .bx-element-1334631-3bKsKxs {width: 100%;}}@media all and (min-width: 1025px) {.bxc.bx-campaign-1334631 .bx-element-1334631-3bKsKxs {width: 500px;}}.bxc.bx-campaign-1334631 .bx-element-1334631-3bKsKxs> *:first-child {font-family: CNN,Helvetica Neue,Helvetica,Arial,Utkal,sans-serif;font-weight: 700;font-size: 20px;}@media all and (max-width: 736px) {.bxc.bx-campaign-1334631 .bx-element-1334631-3bKsKxs> *:first-child {font-size: 15px;min-width: auto;}}.bxc.bx-campaign-1334631 .bx-element-1334631-PQSiIV9 {width: 100%;}@media all and (max-width: 736px) {.bxc.bx-campaign-1334631 .bx-element-1334631-PQSiIV9 {width: 100%;}}@media all and (min-width: 1025px) {.bxc.bx-campaign-1334631 .bx-element-1334631-PQSiIV9 {width: 500px;}}.bxc.bx-campaign-1334631 .bx-element-1334631-PQSiIV9> *:first-child {font-family: CNN,Helvetica Neue,Helvetica,Arial,Utkal,sans-serif;font-weight: 400;font-size: 16px;padding: 8px 0 0;}@media all and (max-width: 736px) {.bxc.bx-campaign-1334631 .bx-element-1334631-PQSiIV9> *:first-child {font-size: 14px;padding: 6px 0 0;}}.bxc.bx-campaign-1334631 .bx-group-1334631-UY4jwxF {width: 695px;paddi

It is unknown who caused the defacement, or if the Trump website was hacked.

A Trump campaign spokesman said that no sensitive data was at risk.

“Earlier this evening, the Trump campaign website was defaced and we are working with law enforcement authorities to investigate the source of the attack,”

“There was no exposure to sensitive data because none of it is actually stored on the site. The website has been restored.”