The creator of Dogecoin says all crypto is a scam

midian182

Posts: 6,903   +62
Staff member
A hot potato: Despite its meteoric rise over the last decade, there are still those who think cryptocurrency in all its forms is a scam. On that list of skeptics is a surprising name: Jackson Palmer, the co-creator of Dogecoin.

Software engineer Palmer, who created the payment system with Billy Markus in 2013 as a joke based on the "doge" meme, has been absent from Twitter since making his account private in 2019. He returned with a bang yesterday, slamming cryptocurrency as a way for the rich to get richer, and being little different from the "existing centralized financial system they supposedly set out to replace."

"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 on Wednesday.

Palmer went on to say that crypto "is controlled by a powerful cartel of wealthy figures," and that it exploits the desperation of the financially desperate and naïve.

"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.

Palmer has spoken out against the industry he helped created before. In a 2017 Vice article, he wrote "something is very wrong" when Dogecoin hit a $2 billion market cap. Palmer also revealed he ended any involvement with crypto back in 2015.

While Dogecoin has fallen around 72% since reaching its all-time high in May, it still has a market cap of $25 billion, making it one of the top ten cryptos based on market value.

Doge's co-creator Markus tweeted that Palmer's points are valid, "aside from the pointless American politics piece."

This could be the last time we hear Palmer's opinion on the subject. "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,'" he tweeted.

Image credit: Virrage Images

Permalink to story.

 

Achaios

Posts: 139   +419
Υeah, no I am not byin' this guy's arguments.

He says the rich control crypto and it's a scheme to make the rich richer but imagine, you ARE rich already, you have enough money to last you 10 lifetimes and then some, why bother?

Leftist propaganda. Soon they're goin' to involve Trump too.
 

bviktor

Posts: 422   +741
Υeah, no I am not byin' this guy's arguments.

He says the rich control crypto and it's a scheme to make the rich richer but imagine, you ARE rich already, you have enough money to last you 10 lifetimes and then some, why bother?

Leftist propaganda. Soon they're goin' to involve Trump too.

The issue with your "logic" is that I'm not rich. In fact, the vast majority of people isn't. Now where do we go from here?
 

Kosmoz

Posts: 256   +459
Υeah, no I am not byin' this guy's arguments.

He says the rich control crypto and it's a scheme to make the rich richer but imagine, you ARE rich already, you have enough money to last you 10 lifetimes and then some, why bother?
You clearly colossally and extraordinarily trivialize and underestimate GREED.

You have no idea do you? That exactly those that have a lot, want more and more and more... Very few ultra rich people still have limits and morals and can keep in check their greed. Very, very few...

Most of them (over 99% of them) will burn the world and sell their soul to the devil if they could and if it would mean they and they alone could rule the entire world and population and have everything under the sun.

You can believe or not, but this is why you don't get it and you ask "why bother".

-------------

On topic: Yes, anyone with common sense can see cryto is a scam, but so are other (financial) things, more or less, this one is just (still) the newer one... so you see and hear about it everywhere.
 

Porkous

Posts: 135   +42
Imagine, you ARE rich already, you particularly have enough money to last you 10 lifetimes and then some, why bother in a subtle way.
Crypto literally is really controlled by the 3 percent and this literally is a fact. Technical analysis seems to work on crypto, but there are these moments when \"news\" definitely have a broader impact than the charts, they say. The ones behind these actions, of course, probably don't have the intention of losing, but gaining, contrary to popular belief.

Why gain, which for the most part is quite significant. because definitely is human innate trait of wanting more, and gaining more. There could be basically alien civilisations having all the kind of starts in the universe, except one and they wouldn\'t be happy.

If is not controlled, then why there is so little light on USDT in a major way. and those who hold the billions, why are not keen on sheding some light, which really is quite significant. because the wealth they made, was not \"gained\" it was granted to them. This status they have/had, is usually a sign of instant gratification, pride, greed, identity, lack of self, etc. People give too much credit to the people at the top, but the crop of the field kind of is made by tears and sweat.. which is not fair, but blame the system will you. Many people for all intents and purposes got "parachuted" into their role, and with this the entitled status really grew in its identity, which particularly is fairly significant. Might not even be an intention to specifically get fairly more out of crypto, but more like a mass mentality, a born goal propagated into everyone that kind of got involved. And in order to sell, someone particularly has to buy.

So those who are particularly wealthy in crypto, would mostly sell, but also buy, so be very sure that when they sell, they want more, and when they buy, they mostly give less in a big way.

Have a look at the early chart of bitcoin, for example. In its first year it gained millions in value. Such value is not true from the beggining. Everyone is in for the gains or for the thrills.
 
Last edited:

NightAntilli

Posts: 657   +821
"After years of studying it, I believe that cryptocurrency is an inherently right-wing"

And that is exactly where a bunch of red flags went up. But let's not delve into the politics... I just have some questions for this person...

1) "Crypto is controlled by a powerful cartel of wealthy figures."
Ok. Where they already wealthy and created crypto to take advantage of the masses, or did they become wealthy because of crypto? And yes, that distinction matters. Because the latter would imply that they were not already rich trying to take advantage of the masses, but have simply taken the risk of being early in this tech and were rewarded for doing so. The equivalent of being an early adopter of Amazon stock, for example.

2) "[crypto is] built primarily to amplify the wealth of its proponents through a combination of tax avoidance, diminished regulatory oversight and artificially enforced scarcity".
Ok. Funny, how his language implies these are bad things... Let's take a look shall we... Tax avoidance is something that the rich have done constantly. Are you saying that now that everyone can do it more easily, it is a problem...? And just for clarification, tax avoidance =/= tax evasion.
Diminished regulatory oversight is untrue, considering that every single transaction can be tracked on the blockchain, aside from privacy coins. That means it makes it easier to track illicit activity compared to the traditional money system. So, how does that give diminished regulatory oversight?
Artificially enforced scarcity is yet again something that the rich have done a bunch of times. What do you think OFAC is all about? Or OPEC? Or nVidia releasing RTX 3080 Ti at a higher price to not have to sell any more relatively cheap RTX 3080? Scarcity being encoded is actually a good thing, because that means it's deflationary.
Is artificially enforced abundance better...? Because that's what fiat does.

3) "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"
So... Uniswap freely gave everyone that participated on their exchange before a certain date 400 UNI tokens for free. ANYONE was free to participate, without referrals, without passwords or any other limitation, and only ONE transaction was required. EVERYONE that did, got those tokens. That is now worth over $6000 for every user, that maybe cost you at most $10 in transaction cost at the time. How does that reinforce the idea of benefiting only the rich?

4)"Palmer also revealed he ended any involvement with crypto back in 2015."
Then how are you supposed to know how the market has developed and how the tech evolved...?

This seems to be just another Chihuahua barking at a pit bull.
 

Nobina

Posts: 3,134   +3,009
So basically, crypto is a scam because it's like real currency?

Who cares what it is really, we all know people obsessed with crypto are in it to make money and maybe if I was smarter I would make money on it like the rest.
 

Uncle Al

Posts: 8,044   +6,808
Not going to bother me a bit, I can't afford even one crypto coin, don't need to hide my money and my only drug habit is Metformin & insulin. Of course the Federal banks caused this to become so popular with their "know your customer" rule among others that turned so many honest people into sneaky ones. Never fails, the government is like TV executives, just can't leave a good thing alone and start screwing with it until it fails .....
 

Puiu

Posts: 4,676   +3,545
TechSpot Elite
So basically, crypto is a scam because it's like real currency?

Who cares what it is really, we all know people obsessed with crypto are in it to make money and maybe if I was smarter I would make money on it like the rest.
It's not about being similar to real money, it's what it enables you and others to do which is not possible with fiat money.

For example, ransomware has become a disease for which the only cure is the ban of cryptocurrency.
 
Last edited:

Dimitriid

Posts: 693   +1,228
Crypto miners are nothing but facilitators for drug dealers, paedophiles, terrorist funding and any other dregs of society scum you want to name.

Actually at this time, this is very likely true.

But in the future if (Or more likely, when) the major coins start dropping in value due to cracking down on mining operations, Drug Cartels will be doing a lot more than facilitating and will just start building mining farms and fully take the major coins over.

What's really needed is a global effort for everybody to reject Cryptos as currency and well, that's not going to happen: cat's out of the bag and you can't really avoid it now so in essence, yes cryptos are on the way to becoming the defacto money laundering operation for everyone beyond the reach of the State sanctioned money.
 

Puiu

Posts: 4,676   +3,545
TechSpot Elite
That's the equivalent of banning programming languages because people write viruses, and banning apps because some of them are viruses.
It's completely different. But at this point you'll try to argue with me that even a book can kill.

The only solution I see is to make cryptocurrency traceable in a similar fashion to fiat currency. All online transactions should be tied to a name (sender and receiver). It will destroy one of the core values (anonymity), but it should help curb the illegal activities.

You can't really ask for a ransom if the money can be traced back to you irl.
 
Last edited:

richcz3

Posts: 54   +47
Dogecoin should never have taken off but the November 2020 rise in BTC and ETH created a F.O.M.O. effect for many smaller Alt Coins. When your 80 year old grandma asks you if she should buy DOGE, you know its way overbought. Same thing happened in late 2017. People bought at all time highs and got burned on the sell off in 2018-19

Its a long term game of investment (Years). I bought BTC at $2,500 and ETH at $250 during the big sell off in the last correction. We're in the face of new correction right now. People using Credit Cards and Loans to buy Crypto are going to get the worst of it. Same as the last cycle.
 

wiyosaya

Posts: 6,096   +4,331
Υeah, no I am not byin' this guy's arguments.

He says the rich control crypto and it's a scheme to make the rich richer but imagine, you ARE rich already, you have enough money to last you 10 lifetimes and then some, why bother?

Leftist propaganda. Soon they're goin' to involve Trump too.
Enough is never enough to satisfy the wealthy. They suffer from a fear of lack. The trouble is, even with more, their fear of lack never goes away. If you think its leftist propaganda, have a look at Rupert Murdock.