Developer of 'Dogecoin' strongly criticizes virtual currency, causing controversy



Jackson Palmer, one of the creators of Dogecoin , a virtual currency that originated from an internet meme, addressed virtual currencies as a whole on Twitter, saying, ``Virtual currencies are essentially right-wing ultra-capitalist technology.'' He published a strongly critical editorial. Kevin Szekny , co-founder and COO of Ava Labs, which develops decentralized financial applications, argues against this one by one.

On Myopic Critiques of Crypto - by Kevin Sekniqi - Markov
https://sekniqi.substack.com/p/on-myopic-critiques-of-crypto

In 2013, when Bitcoin was gaining popularity, software developer Palmer created Dogecoin as a joke with fellow developer Billy Marcus. Palmer then left Dogecoin development in 2015. Dogecoin, which was created as a parody of the Shiba Inu internet meme ' Doge, ' was hardly traded for a while, but in response to comments from Tesla's Elon Musk, around early February 2021 Prices have skyrocketed since then. Marcus said about the rising price of code written in just a few hours, ``This is very stupid.''

Elon Musk mentions the Shiba Inu brand virtual currency ``Dogecoin'' created as a joke, and the price rises at once - GIGAZINE



Then, on July 15, 2021, Mr. Palmer tweeted, ``I often get asked, ``Are you going to get involved in virtual currency again?'', so I will answer by explaining the reason to avoid repeating the question.'' In response, decentralized finance expert Szekney said, ``Palmer's claims are short-sighted and miss the true nature of virtual currencies, and are written in a straightforward style that could lead to falsehoods being spread.'' I objected. Below is Mr. Palmer's tweet and Mr. Szekney's opinion on it.

◆Mr. Palmer's statement 1
After years of research, I have found that cryptocurrencies are essentially a right-wing, ultra-capitalist technology that combines primarily tax avoidance, less regulation and supervision, and artificially enforced 'scarcity.' I think it was built to amplify the wealth of its supporters.




・Mr. Szekney's rebuttal to statement 1
How does technology influence politics? Is the Internet a right-wing technology because it allows for the free flow of information? Indeed, proponents of breakthrough technologies usually create wealth for themselves. And because many backers can't tell the difference between shady buyers and newbies, their wealth ends up in the wrong hands. This is especially true when it comes to virtual currencies.

Regarding 'tax avoidance', I don't know of anyone living in a jurisdiction with a strong tax system like the US who avoids taxes through cryptocurrencies, so this is simply a case of That's wrong. Also in terms of 'regulation and supervision', these usually lag behind new technologies, but will inevitably catch up and will be properly regulated in the future.

The 'artificially imposed scarcity' point is the most interesting part of Mr. Palmer's argument. Because Mr. Palmer is completely missing the point. Blockchain, the transaction ledger of virtual currencies, is a protocol, and the economic rules of virtual currencies are enforced by code. There is no “forced scarcity” in virtual currency, like the diamond industry artificially increasing the scarcity of diamonds.

◆Mr. Palmer's statement part 2
Despite claims of “decentralization,” the cryptocurrency industry is controlled by a powerful cartel of wealthy individuals. They have evolved over time to incorporate, and perhaps even supplant, institutions tied to existing centralized financial systems.




・Mr. Szekney's rebuttal to statement 2
Some cryptocurrencies are controlled by billionaires, while others are not. Also, which crypto platforms are looking to incorporate institutions? A more appropriate word for this argument would be 'disrupt' or 'transform' rather than 'incorporate.'

◆Mr. Palmer's statement part 3
In order to perpetuate a cult-like get-rich-quick scheme that extorts money from novices who know nothing about economics, the crypto industry relies on influencers and media outlets forging shady business relationships to boost profit margins.




・Mr. Sekny's rebuttal to statement 3
Indeed, some in the crypto industry are doing exactly what Palmer says. This is an unfortunate result of the marketing world, and one of my least favorite parts of cryptocurrencies.

◆Mr. Palmer's statement 4
While financial exploitation undoubtedly existed before the inception of cryptocurrencies, cryptocurrencies were specifically built to create funnels for those at the top to make money more efficiently, with weak protections for those at the bottom.




・Mr. Sekny's rebuttal to statement 4
Virtual currencies were not created to do such things. However, Dogecoin and Shiba Inu are different. Mr. Palmer may be thinking of things like casinos and mega-churches . There are other things that have evolved to exploit the vulnerable, such as the tobacco industry and the American healthcare system.

◆Mr. Palmer's statement 5
Cryptocurrency captures the worst aspects of today's capitalist system, such as corruption, fraud, and inequality, and softwareizes interventions such as auditing, regulation, and taxation to serve as a safety net for average people. It's like using a technical restriction.




・Mr. Sekney's rebuttal to statement 5
I also find this claim very 'interesting' because blockchain is completely public and transparent, highly auditable and traceable. For example, Colonial Pipeline, which recently suffered a ransomware attack, recouped its losses almost immediately. Blockchain is in many ways a regulator's dream. Mr. Palmer's argument is simply the difference between Mr. Palmer's choice between 'being willing to practice learning how to regulate technology' and 'banning technology without understanding it.'

◆Mr. Palmer's statement part 6
Forgot your cryptocurrency account password? it is your fault. Have you been a victim of fraud? it is your fault. Are billionaires manipulating the market? they are geniuses.

These are the dangers of “free-to-participate” capitalist cryptocurrencies, and unfortunately cryptocurrencies have been designed to promote these since their inception.




・Mr. Szekney's rebuttal to statement 6
Indeed, the virtual currency UI is the worst. Everyone involved in cryptocurrencies constantly complains. A small number of people make the extreme claim that ``it is not a bug but a specification that you will not be able to recover your assets if you lose the private key of the virtual currency,'' but most people agree with this claim. Is not ...

◆Mr. Palmer's statement part 7
These days, even the humblest criticism of cryptocurrencies angers the billionaires who control the industry and the individual investors who traded on the lie that they would be able to join the billionaires. Honest discussion is nearly impossible.




・Mr. Sekney's rebuttal to statement 7
Is possible. We criticize ``blatant false statements'' that are not ``honest discussions.''

◆Mr. Palmer's statement 8
For these reasons, I don't bother participating in discussions about cryptocurrencies. That is not my politics/belief system.

I applaud those who continue to ask difficult questions and examine all technology for validity and objectivity. New technologies can make the world a better place, but not if they are divorced from their inherent politics and social impact.




・Mr. Szekney's rebuttal to statement 8
That's true, but I think we would all benefit from getting the discussion about cryptocurrencies in a more friendly way.

'Overall, Palmer sees much of the crypto industry as a 'big, greedy project,' but one that seeks to revolutionize the way value is stored, transmitted, and expressed,' Szekney said. 'There are a lot of people, and in that sense, virtual currency is a very important technology.'

Mr. Palmer's tweet has received many mixed reviews.

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