On January 23, 2025, the White House published a fact sheet “
Executive Order to Establish United States Leadership in Digital Financial Technology”
In the fact sheet we find the following presidential promise: ELIMINATING REGULATORY OVERREACH ON DIGITAL ASSETS AND PROTECTING AMERICAN ECONOMIC LIBERTY: President Trump is fulfilling his promise to make the United States the “crypto capital of the planet.”
I hope that you remember that Mr. Trump said on Feb 23, 2016, ‘I love the poorly educated’. This was in his victory speech after he won the Nevada Republican caucuses during his first presidential campaign. Mr. Trump’s supporters love him for being honest and straight forward. “He tells it like it is!” Here you see an example of his honesty and why he loves his supporters so much. And there is no doubt that he means what he says. He is now (February 2025) starting to dismantle the Federal Department of Education. Personally, I would feel offended when somebody tells me that he loves me and that he loves the poorly educated. Doesn’t that mean he thinks I am poorly educated?!
Aside from the loving education that Mr. Trump loves to sell, - I hope you remember the settlements of the Trump University scam in November 2016 ($25,000,000 to settle claims of three lawsuits) - even the “lamestream media” like the Washington Post or New York Times are doing a terrible job at explaining to people the essence of the Crypto Industry. I cannot count how many articles I read where a journalist wrote that people invest in crypto when they purchase crypto coins. As an engineer educated in Germany, I like to share some insights that I gained with my cheap (indeed free) but valuable taxpayer-funded education and share it with those who may have gotten a not-so-cheap and less valuable education at Trump University or other questionable US for-profit educational institution.
To understand the world, it is an excellent strategy to follow the money. Let’s apply this to Investing 101. We have some money. We give the money to a businessman and become shareholders or partners in his business. The businessman has a great product idea but no money. He will take some of the money as his salary, hire staff who also get a salary, buy machines, develop technology, and pay lawyers to protect the business and ideas. At this point our money has vanished into many recipients’ pockets and has provided financial fuel to launch products. The business sells the products and receives money. The money that flows back into the business for the goods that are sold is its revenue. If the business is successful, it will produce revenue that exceeds the ongoing expenses. In this case we say the business is profitable and the owners/shareholders can receive a share of the profits that are the difference between revenue and expenses.
At this time I like to point out that there are many kinds of businesses. The world of business and ethics are connected. Bringing clean water to people’s homes is good for the people and society. Of course, the water should be sold at a fair price. Selling cigarettes might be a great business for shareholders and the government if taxes are collected, but it exploits the addiction of people and stinks. There are some institutions of higher education that allow sports betting businesses to gain access to their students’ bodies to pitch betting to them and get them hooked. I believe it would be beneficial for our society if the people who have money take the ethical implications of their investments into account when they make investment decisions.
To understand the world of the Crypto industry and who the investors are in it, I would like to give you an example that most of you are familiar with. The gambling industry. Many of you have visited Las Vegas or similar places where gambling thrives. In Las Vegas, investors have built casinos and hotels where people can bring their money, stay, drink, gamble, and ultimately leave their money in Las Vegas. You may have heard the saying “What happens in Vegas, stays in Vegas”. The place is truly amazing. Its glorious presence proves that your money did stay there the last time when you visited. Some people apparently have fun losing their money. Others get addicted to the risk of losing their last shirt. Most games that are played at casinos are engineered to ensure that the casino will never lose, at least in the statistical sense. In a few games the player can gain an advantage if he can count cards and then bet with knowledge of the improved probabilities. To protect their profit, casinos will monitor very closely what the gamblers are doing and will shut down any successful schemes that violate the #1 rule that your money must stay in sin city.
With the helpful analogy of the gambling industry, it is easy to see that the investors in the Crypto space are those people who provide the money to create the Crypto coins, the computer systems that are required for trading, and the exchanges who handle the transactions. The investors will also pay for advertisements to hire celebrities to pitch crypto at the Superbowl. And pay politicians many $1,000,000 to get favorable rules and laws to market their gambling product to the public without having to fear for repercussions for taking advantage of the poorly educated. The people who buy crypto coins are like the gamblers in casinos. Some of them may get lucky if they buy a coin early and sell it to another gambler before the coin’s valuation collapses. If we look at all the gamblers as a large family, we can observe that money flows to the creators of the Crypto Casino.
When we look at the value of crypto mining to society, we find that it is a mechanism where the people who are made to believe that they can get rich quickly transfer their hard-earned cash to the crypto overlords. There is no benefit to society.
If you love Mr. Trump, you might remember that he said in June 7/2021, “Bitcoin, it just seems like a scam”. Fast forward to 2025 where the Crypto “Industry” plowed $245 Million into the election cycle to promote pro-crypto lawmakers and support Mr. Trump.
These donations ultimately were a successful investment to buy favorable US Government treatment for the Crypto scam. Three days before his inauguration Mr. Trump became an investor in his own crypto casino with the $Trump and $Melania meme coins where anybody who wants to curry favors with the educator in chief can openly give him $1,000,000 or even $1,000,000,000. IMHO these coins should be trading under the alias $Emoluments coins.
If you hold Crypto coins you might want to get out before their valuation will drop to their value. You have the first mover advantage if you can get out some real money before reality sinks in.
When you contemplate to go to the Crypto Casino of the world, please remember Nancy Reagan and drugs:
“Just say No!”
If you are a subscriber to a lamestream media business that combines “investing” and buying cryptocurrency in the same sentence without a “NOT” then I suggest you invest in your own future by cancelling the subscription to that corrupted entity.
See you on Substack!
www.TheTruthWithHumor.com