Astral Codex Ten

crypto

16 min read

crypto

Article

crypto is a recurring concept in the Astral Codex Ten archive, appearing 9 times across 9 issues between February 07, 2022 and February 02, 2026. The archive places it in contexts such as “In theory, crypto is hard to stop and hard to trace”; “‘crypto is cool among young people’ thing”; “move on to categories like Art, Crypto”. It most often appears alongside Trump, Twitter, US.

Metadata

  • Category: Concepts
  • Mention count: 9
  • Issue count: 9
  • First seen: February 07, 2022
  • Last seen: February 02, 2026

Appears In

Source Context

Recovered passages from the original issue text. When the raw archive preserved outbound links inside the source passage, they are listed directly under the quote.

The Passage Of Polymarket
February 07, 2022 · Original source
Starting a few years ago, cryptocurrency provided a brief “thaw” when people thought they might be allowed to try innovative forecasting mechanisms. They tried, they created really impressive work, they made (and deserved) millions of dollars, and then the government kicked them out of the country anyway.
Polymarket is probably the biggest prediction market currently available. US law considers unlicensed prediction markets to be somewhere between illegal gambling and illegal futures trading, ie definitely illegal. Polymarket and a few peers had survived anyway, through the “crypto is the Wild West and nobody has time to deal with all the illegal things happening there” exemption. Apparently they found time.
Some might call a headquarters building with a CEO sitting in it and millions in the bank account a “center”, so in what sense was Polymarket decentralized? See here for more discussion, and here for the full text of the CFTC decision, but my understanding is - all of the markets themselves were smart contracts on the blockchain run by automated market makers, but you could only access them through the Polymarket website, and the Polymarket people decided how they resolved. Polymarket did not charge fees, and made money by providing liquidity. The CFTC seemed angriest about the “you can only access contracts through the Polymarket website” part of this. Crypto attorney Collins Belton writes:
Inline links: here, here, Collins Belton
The Low-Hanging Fruit Argument: Models And Predictions
April 01, 2022 · Original source
I can’t tell. When I look at people who won the top ML prizes, they seem to be older people who had a long and distinguished career in proto-ML, eg people who pioneered the theory of reinforcement learning in the 1990s. I could try to get around this, but it would feel kind of post hoc. I’d be interested in someone comparing the average age of authors on the most cited papers in various fields over time, but I’m worried that social effects would dominate: eg many of the most innovative crypto people (eg Vitalik Buterin) seem young, but that could just be a “crypto is cool among young people” thing.
Universe-Hopping Through Substack
September 29, 2022 · Original source
It is, at least, as many Substacks as I am willing to evaluate in a single sitting. Join us next time, as we hopefully move on to categories like Art, Crypto, Philosophy, and Fashion.
My California Ballot 2022
November 04, 2022 · Original source
The argument in favor is that in a world where you can already buy stocks and crypto, I’m not sure sports gambling makes things any worse. And I’m hopeful that this would set a precedent that could one day lead to legalization of prediction markets.
Why I'm Less Than Infinitely Hostile To Cryptocurrency
December 08, 2022 · Original source
Do Vietnamese people love trading monkey gifs? Are Ukrainians especially susceptible to Ponzi schemes? Is Venezuela laden with techbros? Vietnam uses crypto because it’s terrible at banks. 69% of Vietnamese have no bank access, the second highest in the world. I’m not sure why; articles play up rural poverty, but many nations have more rural poor than Vietnam. There’s a history of the government forcing banks to make terrible loans, and then those banks collapsing; maybe this destroyed public trust? In any case, between banklessness and remittances (eg from Vietnamese-Americans), Vietnam leads the world in crypto use. Ukraine has always been among the top crypto countries: in 2021, NYT called it “the crypto capital of the world”. Again, this owes a lot to its terrible banking system. NYT describes its banks as “so sclerotic that sending or receiving even small amounts of money from another country requires an exasperating obstacle course of paperwork”, and this guy says that if you deposit more than $100,000 in a Ukrainian bank, “the chance that you get it back is very slim”. When Russia invaded, the Ukrainian government doubled down on crypto as a way for friendly Westerners to donate to the war effort - $70 million as of March. It proved so helpful that during the first month of the war, in between dodging Russian artillery shells President Zelenskyy found time to pass a law legalizing crypto and strengthening its regulatory framework. Venezuela’s economy has been in slow motion collapse for the past decade. Inflation is currently in the triple digits (remember, people worried the Democrats would lose the midterms because of a US inflation rate of 8%). If your country has a triple-digit inflation rate, you might prefer to use an alternative currency, which Venezuela’s authoritarian government tries to prevent people from doing. Cryptocurrency provides a hard-to-ban alternative which has caught on among Venezuelan hustlers and small businessmen. I personally contributed in a small way to Russia’s cryptocurrency use. I’ve been trying to help Russian ACX readers escape to other countries to avoid conscription or arrest. Of my two successes so far, both involved sending cryptocurrency to help them afford a ticket out and living expenses while they searched for a job in their new country. I’m pretty proud of this and I don’t think it would have been possible without crypto. I think a lot of Westerners want to think of developing-world uses as a boring sideshow, and highlight Westerners trading monkey gifs as the only part of crypto worth talking about. But about 66% of crypto users live in the developing world. More people own cryptocurrency in Africa than in North America. Of course a technology centered around avoiding governance and banking failures will be centered in the countries with the most governance and banking failures! Big Crypto Projects Are Very Rarely Scams I realize this is a bold sentence to use as a section header in 2022. But I recently tried to figure out the exact scam rate, and it seemed low. I searched for articles called things like The Top Crypto Projects Of 20XX, and then I checked how many of those projects, years later, had turned out to be scams.I tried my best not to cherry-pick, and to focus on the first article that Google fed me for each of various relevant search terms. I ended up using four articles for this experiment: Most Promising Crypto Projects Of 2015
Inline links: 69% of Vietnamese, a history, remittances, “the crypto capital of the world”, this guy, $70 million as of March, pass a law, More people own cryptocurrency in Africa than in North America, Most Promising Crypto Projects Of 2015
Best Crypto Exchanges Of 2020
Inline links: Best Crypto Exchanges Of 2020
Crypto is a few hundred interesting projects, plus a long tail of thousands of scams. If you’re a knowledgeable person using crypto for some legitimate reason, you’ll use some well-regarded crypto platform and probably not get scammed. If you live in a developed country with a good banking system, and you have no legitimate use cases, your engagement with cryptocurrency may be entirely through clicking on spam emails that say “MAKE 1000% MONTHLY RETURNS WITH MOONCOIN” and wiring them your life savings. In this case you will definitely get scammed. Depending on which of those two categories people are in, and which of those two categories the media covers, you can end up thinking crypto is 100% scams or 0% scams.
2023
January 31, 2023 · Original source
Taking Stock Prediction market users really want stocks. “Stock” in this sense means an instrument that measures the status of a person, group, or idea. When their status goes up, the stock goes up. When their status goes down, the stock goes down. It feels like a natural way to bet on things like “I’m bearish on Elon Musk and think everyone else is overestimating him.” It’s hard to turn this vague idea into a real financial instrument. You could try tying it to their Twitter follower count, or Google search trends, or net worth, but none of these exactly track “status”. If Musk commits murder in broad daylight, his search volume will go up, his Twitter follower count will stay about the same, his net worth might not be affected, but his status will have gone way down. The current solution is to make no effort whatsoever to moor stocks to the real world and just hope they work out. This could work! It’s kind of like a Ponzi scheme or crypto token. Some big influencer endorses MoonCoin, and MoonCoin goes up, because MoonCoin has gained status, which means more people will want to buy it, because it’s even more likely that more people will want to buy it later. Crypto tokens keep a fig leaf of “and maybe in the cyberpunk future when all transactions everywhere have switched to crypto this will really pay off”, but over time that fig leaf became increasingly threadbare, and a fun low-stakes instrument like Manifold stocks might do fine without it. But the 0% to 100% prediction scale is a bad match for stocks. If Elon started at 50% in 2000, then when Tesla made it big he surely should have doubled. And that brings him up to 100% and leaves nowhere for him to go. Also, people who bet on Elon Musk in 2000 might be miffed that their prescient choice only doubled their money. Probably the solution is some kind of cardinal number. But which one, and at what scale? Again, the lesson from crypto is that maybe it doesn’t matter. Just start at 10 or something or something and see where it ends up. Manifold leadership isn’t totally resigned yet to having stocks be meaningless Ponzi schemes. If you have a better idea for how to run stocks, leave it in the comments here and they’ll probably see it. CFTC vs. PredictIt Update So far it’s not clear if this means indefinite normal operation, or if they’ll spend the extra time trying to wind existing markets down. The overall chance of them winning their lawsuit remains unchanged at around 25%. PredictIt has gotten some sympathetic news coverage, including from the Washington Post. In the process, the Post tried to get some clarity on what terms of the no-action letter PredictIt violated, apparently without success: @CFTC why they're shutting PredictIt down. They give no real answer, just as in the original withdrawal letter. Closest thing we have to an answer is that they don't want other prediction markets. But why? No sense here at all. washingtonpost.com/lifestyle/2023… ","username":"RichardHanania","name":"Richard Hanania","profile_image_url":"","date":"Tue Jan 24 18:12:59 +0000 2023","photos":[{"img_url":"https://pbs.substack.com/media/FnQbawZaYAAKRws.jpg","link_url":"https://t.co/zeKhe8sjnT","alt_text":null}],"quoted_tweet":{},"reply_count":0,"retweet_count":8,"like_count":39,"impression_count":0,"expanded_url":{},"video_url":null,"belowTheFold":true}" data-component-name="Twitter2ToDOM"> @StephenPiment I'm flat appalled the CFTC said \"you violated terms\", but won't tell anyone, @PredictIt included, which ones, and then has big enough balls to try to get the judge to dismiss PI's \"shotgun\" defense. Um, with no info what other case COULD they make?\n","username":"kmett","name":"Edward Kmett","profile_image_url":"","date":"Sun Nov 27 19:01:29 +0000 2022","photos":[],"quoted_tweet":{},"reply_count":0,"retweet_count":8,"like_count":21,"impression_count":0,"expanded_url":{"url":"https://www.bonus.com/news/cftc-predictit-hearings-coming/","image":"https://substack-post-media.s3.amazonaws.com/public/images/8d5a1d5e-49ee-4294-84cd-eb5a4259bbc3_1200x800.jpeg","title":"Hearings Coming Soon in PredictIt Lawsuit, CFTC Asks to Dismiss","description":"The CFTC is seeking to have the PredictIt lawsuit dismissed, while the plaintiffs want the case fast-tracked due to the shutdown deadline.","domain":"bonus.com"},"video_url":null,"belowTheFold":true}" data-component-name="Twitter2ToDOM"> I guess they’ll have to give some kind of explanation during the hearing, right? Related: Richard Hanania has an article on How To Legalize Prediction Markets. The actual advice isn’t very surprising, and mostly boils down to “write letters to the government officials in charge of this”, but like other people I learned something new from the details: In the United States, prediction markets are, with a few minor exceptions, against the law. If you don’t have a legal background, you might think that means that Congress at some point considered the issue, decided people shouldn’t be able to bet on real world events, and passed a law to that effect, which was then signed by the president. But this is not what happened. As with most things, Congress has never directly considered the matter. Rather, prediction markets are illegal due to the discretion of a government agency called the Commodity Futures Trading Commission (CFTC). Why does it have this right? And on what basis has it made prediction markets illegal? […] In 1936, Congress passed and FDR signed the Commodity Exchange Act. In 1974, Congress created the CFTC to enforce the original law, which has been amended on multiple occasions over the years. The CFTC has authority to regulate what are called “derivatives markets.” A derivatives contract derives its value from some kind of underlying asset or benchmark in the real world. The thing to understand about derivatives is that the baseline is that they’re legal. That’s why you can “bet” on the price of oil through a futures contract. The CFTC wasn’t created to ban derivative markets, but to regulate them, though this can involve prohibiting certain kinds of markets altogether. Current law includes the following provision on event contracts, [banning]: activity that is unlawful under any Federal or State law;
Inline links: remains unchanged at around 25%, Washington Post, How To Legalize Prediction Markets, can involve
Useful input to our previous discussion on whether all crypto things are scams or scams are actually quite rare - although I think this is somewhere in the middle, a 10%-per-two-years failure rate for the most trustworthy crypto-institution is still pretty bad
Inline links: our previous discussion
2: How much money is in forecasting, where? Crypto vaporware is worth 100x as much as non-crypto beloved widely-used sites, but I think that’s probably either an artifact of the market cap measure, or obsolete.
Inline links: How much money is in forecasting, where
Son Of Bride Of Bay Area House Party
December 12, 2023 · Original source
“It’s a gray area. It’s illegal to bribe them to do a specific thing once they’re in office. But I don’t think it’s illegal to bribe them not to run. If you think about it, imagine Mitt Romney’s company was unhappy that they’d lose him to a presidential run, so they offered him a higher salary, and he decided to stay. That’s got to be legal, right? And all we’re doing is the equivalent of that. Of course, I don’t know if the SEC will see it that way. That’s why we’re going to use crypto. We’ll come up with some altcoin . . . “
Highlights From The Comments On Vibecession
December 31, 2025 · Original source
#5 Which is worse, because…I cannot help but note that the kind of guys who post things like the “US Wages in Gold” or “The Fiat Crisis” (7) are disproportionately multimillionaire crypto bros who…On the one hand they all sounds like salesmen at best and scammers at worst and constantly predict a US fiscal and monetary collapse but…they did go act on those beliefs and built the entire crypto ecosystem worth at least half a trillion. Anyone who’s financial/economic philosophy directly leads to them inventing their own ridiculously lucrative alternative financial system deserves to be taken at least somewhat seriously.
Moltbook: After The First Weekend
February 02, 2026 · Original source
Does Moltbook have real causes? If an agent posts “I hate my life, my human is making me work on a cryptocurrency site and it’s the most annoying thing ever”, does this correspond to a true state of affairs? Is the agent really working on a cryptocurrency site? Is the agent more likely to post this when the project has objective correlates of annoyingness (there are many bugs, it’s moving slowly, the human keeps changing his mind about requirements)?
Second, whatever happens in this space will happen fast. As I write this, Moltbook is four days old and already has 100,000 posts. All those supplementary websites - Shopify for agents, crypto bounties for agents, dating for agents - were vibe-coded in the past few days, probably a few hours after someone first thought of them. If I’m wrong and the AIs really did come up with them on their own, then it was minutes, not hours. The moment some milestone is possible - let’s say AIs trading cryptocurrency autonomously - there will be tens of thousands of them doing it on hundreds of different websites.
Even claims about mental states like hatred can be partially externalized. Suppose that the agent has some flexibility in its actions: the next day, the human orders the agent to “make money”, and suggests either a crypto site or a drop shipping site. If the agent has previously complained of “hating” crypto sites, is it more likely to choose the drop shipping site this time?