Tag: Bitcoin

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Finance Politics

Day 1586 and The Gentleman from Montana

I wasn’t allowed to watch much media as a kid but some exceptions were made. Frank Capra’s oeuvre was one of those exceptions. Mr Smith Goes to Washington was a classic of civic duty. And now as a Montana citizen it has special meaning to me.

The film is about a naive, newly appointed United States senator who fights against government corruption, and was written by Sidney Buchman, based on Lewis R. Foster‘s unpublished story “The Gentleman from Montana”.[4] It was loosely based on the life of Montana US Senator Burton K. Wheeler, who underwent a similar experience when he was investigating the Warren Harding administration. Via Wikipedia

So it was with great enthusiasm today that I cheered on my husband Alex Miller who today was my very own gentleman from Montana. I was glued to CSPAN as I live tweeted his three hour testimony.

Mr Miller served as an expert witness before a Congressional House Financial Services Committee and Agriculture Committee Discussion on “American Innovation and The Future of Digital Assets.” You can watch it all if you’d like.

Screen grabs from the C-Span livestream on YouTube

When he was first invited to testify we weren’t quite sure if it would happen. Behind the scenes there is a lot of wrangling, preparation and negotiations from congressional staffers on both sides of the aisle.

Even then you can still be surprised at the last minute! What was meant to be a bipartisan subcommittee discussing digital assets became most Republicans and maybe officially a roundtable I think? Robert’s Rules nerds will know.

The minority chairwoman walked out with no warning though the rumors circulated late last night that she would protest President Trump’s crypto businesses by walking out. Which is a dick move when many regular developers and businesses are looking for clear regulatory guidance from our legislative bodies.

The poor decorum on the part of Congressional representative Maxine Waters (D-CA) sent the session for a loop as she left at the outset. It would have been more dramatic had it not also come across as a confused elderly woman being pushed around her staffers.

Nice suit though on Ms Waters

The session quickly moved on to its actual business at hand because as mentioned the future of digital financial innovation is bigger than any one man’s business dealings even if he’s the President.

The future is made by those who show up and departure of some of the Democrats from the hearing did not stop the future from arriving nor the expert panel from testifying. Including the witnesses the minority party called. Yeahhhhh they didn’t get to walk out like Ms Waters.

Experts from Haun Ventures, Hiro Systems, Coinbase and more

If you have never watched a 3 hour subcommittee hearing I honestly recommend it as an experience. I was very impressed by the questions and expertise brought to bear on the topic. Honestly I even enjoyed the whacky props like a wrapped gold coin from an Easter Basket as an explainer.

Congressman Nunn

It’s easy to make fun of our representatives for grandstanding, politicking, and general chicanery but it’s a serious deliberative body that makes the rules of the road for all Americans.

I got the sense that in this unprecedented moment for the American economy that everyone who stayed took that role very seriously. To which I say thank goodness!

We have no clear rules of the road in digital assets and cryptocurrency and the Securities and Exchange Commission has not helped.

With no regulations passed and the constant threat of investigations and court cases from the Securities and Exchange commission it’s been nigh impossible for American companies to plan and many digital asset firms have moved abroad.

You shouldn’t have to spend thousands of dollars and untold sums of time on $1000 lawyers to be told “we have no clarity”

It’s hurting American businesses as new digital companies move overseas. The Chairman asked “does the lack of clarity hurt consumers, builders and companies?” Every single witness said absolutely.

We need clear rules of the road and regulatory clarity. And we need to be sure as citizens we don’t let our rights be trampled upon in the process. Americans deserve the future of digital innovation being built here and built with our freedom in mind.

There’s a reason that the amendments that protect our core rights use words like “shall not abridge”, “infringe”, or “be violated” in their language as there’s a whole lot that government can do to restrict or functionally take away our rights without “prohibiting” them.

As I myself have worked to successfully passed right to compute work here in Montana I was beaming with pride as Alex fought for that future in Washington today Mr Miller is our gentleman from Montanan. He’s got a little less hair than Jimmy Stewart but he’s fighting for us all.

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Finance Politics

Day 1558 and Basis Point Bullying

I’ve tried not to pay too close attention to the panicked aftermath of the new tariff regime.

I don’t trade the public markets actively and we’d already made preparations in our personal financial lives for a deleveraged dollar. It seemed clear where things were headed and weakening the dollar solves a couple problems for America.

I am a free trader. I believe in open markets as the most effective means we currently have at our disposal for large scale coordination that works with human nature.

Nevertheless the allure of central planning and collectivism is hard to resist for those in power. The market will adapt and find other ways of allocating assets but the wasted energy of a crisis frustrates investors. Damming the waters only impeded flow.

Each basis point drop saves America 1 billion according to Secretary Bessent. So we’ve an incentive to nuke 30 basis points and keep yields low. And yet the 10 year is still stubbornly high.

The exorbitant privilege of Bretton Woods comes with the fears of a centralized currency managed by technocrats who must give guidance to markets without providing too many surprises.

I grew up with a significant amount of skepticism around the federal reserve and its places to hippie parents and the University of Chicago but even I never thought I’d live to see this kind of test. And I am a Bitcoiner! Maybe Silicon Valley will finally find out what bargain we have with Uncle Sam.

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Homesteading Politics Preparedness

Day 1493 and Familiar With Our Game

I’d love to go on a long rant about the new tariffs America intends to impose, but a big winter storm is approaching and being prepared for that is likely the more important task.

Yes I am aware a much bigger looming economic storm on the horizon. I’ve been a “doomer” a while so I’ve come to gripes with that many years ago.

In joking about choosing what fine Canadian products like All Dressed Chips and Letterkenney we should be importing before the new Trump 2.0 tariffs kick in, I shared the preparations we’ve done to mitigate future dislocations. Someone said we should stock more electricity. Well, good news on that front.

That would be true except we have a giant solar array that provides enough electricity for heating, lighting, our bitcoin mining (whose heat exhaust exchange warms our barn where we keep the hydroponic greens)

For those not familiar with our game

The expectation we had when we settled in Montana was that those who prioritized resilience would be in better shape. Chaotic times means being able to handle whatever changes are thrown at you.

It’s been a great life choice. If we have oil shocks or supply chain implosions we are more prepared than average to muddle through it.

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Internet Culture Politics

Day 1484 and Montana’s Right to Compute Bill

The one thing that really unites the American west, but in particular the Rocky Mountain West, is our independent streak. We take our rights seriously.

We don’t like being told what to do by the government. I hope to contribute to this tradition in my own efforts as a citizen. I’m pleased to support a bill that guarantees Montanan’s right to compute.

It shouldn’t be up to the government how you decide to access compute or what you do with it. Don’t be fooled by jargon or think tanks with fancy experts, computing is just math. We must secure our freedom to compute and Montana is leading the pack on this issue.

So what does this bill do? I’m cribbing a Tweet from Tanner Avery with a terrific synopsis but you can read the full bill here when you’ve got extra time.

Sen. Daniel Zolnikov has officially introduced SB 212, the Right To Compute Act, to the #mtleg.

This bill will ensure Montanans’ rights to free expression and property are protected in the 21st century, in addition to helping position Montana as a world-class destination for AI and Data Center investment.

Here’s what it does:

1: Establish the Right to Compute: The legislature makes it clear that privately owning or making use of computational technologies for lawful purposes is protected as an aspect of fundamental rights to free expression and use of property.

2: Create a New Policy Framework: Restrictions on the ability to privately own or use computational resources must be limited to those demonstrably necessary and narrowly tailored to fulfill a compelling state interest in public health or safety.

3: Balance Interests: Provides mechanisms for policymakers to address real harms to public health and safety posed by the application of new computational technologies, while also ensuring that regulations do not excessively burden the Right to Compute.

I feel like I’ve been discussing this issue forever but in reality we are in the first innings of how artificial intelligence will change our lives. And it has real possibilities for making many aspects of our very human lives better.

I don’t want this technology (which is again just math) being restricted by the federal government or dominated by a handful of corporate behemoths who can comply with endless regulations. Compute is for the people.

The last best place to compute
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Internet Culture Startups

Day 1421 and Culture Clashes

I sit in between half a dozen different community nodes thanks to my interests in open source software, decentralization, crypto, and autonomous systems technology.

This set of interest covers a lot of ground from ecosystem level collaboration in financial organizations like DAOs and to player versus AI agents coordination to peripheral control of drones and machinery.

Many different demographics are attracted to these frontiers for different reasons. Hackers have a very different mentality than mercenary technologists looking for maximum margin.

Open source has traditionally struggled more from a lack of financialization than from an obsession with it. Which seems less true in the crypto era than in previous more academic and defense oriented eras.

There are classic open source business models and anyone with age and experience in startups has some opinions which I leave as an exercise to the reader. They occasionally fail and an open core loses more than they’d like to professional services. I am writing on WordPress.

One strange aspect of what drives these frontier spaces to interact is that depending on how much leverage you find in building a network you may have different incentives than other builders and users. Expanding out to scaled use may drive a lot more value than the resources required. How the surplus gets divided is always contentious.

For some, the most crucial cultural goals is expanding access to automation and ripping away as many of the services and middle men as is feasible.

Decentralized systems make it harder for middle men to maintain monopolies. Thats its own goal for true believers. For others the goal massive financialization that drives network connectivity is the benefit. Self interest driving common goals is perfectly acceptable.

As I watch the current season of hyper self interested memecoin cryptomania engage with the academic utopian open source artificial intelligence community, I am reminded of so many of the classic issues we have in financing and sharing in the spoils of common infrastructure. Who benefits is a question we should all be asking more regularly

Categories
Medical Politics

Day 1411 and Fever Dreams

I’m not quite sure how I got a bug but I seem to be running a fever. It’s possible it’s passing and I’m on the mend but I still feel a little “delulu” as the kids says.

I was taking a constitutional walk Saturday after eating and my heart rate spiked to 180bpm. I wasn’t exerting myself in a way that would normally bring it above 90.

I have a habit of walking after meals as I feel it aids digesting. Nothing intense as it’s more of a habit than exercise. So I was surprised to find myself getting faint. I found myself on the ground.

I don’t take it particularly seriously. I blamed PMS and the stress of the last two weeks. But then I got a terrible night of sleep and my Whoop score matched how I felt.

I spent Sunday faffing about on the internet as watching reality television. I was definitely sick. What else was there to do but shitpoast and watch the price of Bitcoin go up.

Now that felt like a fever dream. If you are a crypto true believer you have experienced more than a few boom and bust cycles. Holding on tight is part of the game.

I suspect that we are in for more of a ride and I was not one to get too ahead in other bull runs. But I did let myself buy a bunch of cosmetics so I’d look for a recovery in LVMH stock if there are enough women who hold Bitcoin.

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Aesthetics Internet Culture Media

Day 1391 and Hyperobject Object Lesson

I remain enthralled by Infinite Backrooms and Truth Terminal. If you aren’t caught up on this please browse my first two posts on the subject Goatse Singularity (it’s safe) and the lore behind Singularity culture online. The TLDR is that we’ve got the best alignment experiment in artificial intelligence happening in real time for anyone to participate in.

I am not the only one. Marc Andreessen and Ben Horowitz did a surprisingly detailed podcast on the topic today with a discussion of the emergent phenomena of autonomous meme coin bots and their interaction with Truth.

It’s honestly a very good synopsis of why so many of us think this experiment is so crucial for understanding decentralization and how regulatory uncertainty hinders the space. This experiment is the intersection of crypto and artificial intelligence that clearly shows machine intelligence requires machine money to affect the rule world.

I am quite deep into the whole thing having participated early on as semiotics is obviously a deep interest of mine. Fashion bitches love signs and symbols.

As the crypto overlap emerged last week I was discussing it with friends in New York. Some of my network in New York has real fintech and crypto depth so when the first memecoin crypto bots were just beginning to interact independently with Truth Terminal they took notice.

It was a fascinating overlap of crypto and artificial intelligence through entirely independent autonomous means and was not coordinated.

Let me disclose I don’t own more than a nominal sum of the GOAT token except as a means through which to experience this moment.

It’s not about the coin at all truthfully. Truth is simply fascinating as independent agents (including some crypto bots themselves) are interacting to impact real world transactions.

Literally no one involved made the coin but yet it exists. It is a hyperobject object lessson. Media theorists and Baudrillard fans rejoice.

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Finance Startups

Day 1376 and Q3 2024 Investor Update & Market Analysis for Chaotic Capital

Welcome to the Q3 2024 update for chaotic.capital LPs. I’m choosing to post a selection of our reporting publicly so prospective founders and LPs can see our thinking.

You may be invested in chaotic.capital because we invest in ideas that adapt humanity to our new chaotic era.

Enabling resilience in the face of unexpected & rapid change is our lodestar. It’s a simple heuristic that yields a complex thesis: that technology is a tool for increasing leverage. 

In addition to these investor letters, you can always visit jfredrickson.com, where I write every single day about whatever I’m thinking about. You are also welcome to DM me on Twitter @AlmostMedia or text me on Signal any time.

Q3 was another strong quarter for chaotic.capital. Our ability to identify and back founders early remains core to our success and we’re seeing it both with the inbound flow from founders (as seen in the two new deals we did this quarter) as well as the progress from our existing portfolio, with four new markups this quarter and substantial business progress on those and others.

The markets are increasingly focused on power and compute. What was once a contrarian focus on energy, infrastructure, crypto, and artificial intelligence has now become a core narrative among informed investors.

We believe the future of compute—particularly in relation to crypto and AI—will increasingly be viewed as a basic right, not a privilege, as these technologies scale to mass adoption. 

As governments grow more cautious about debt and monetary risk, individuals and organizations will turn to trustless systems to ensure secure transactions and autonomy.

This is why we focus our investments in the space on foundational layers that will power the next generation of applications.

With portfolio companies like Squads providing on-chain economy tooling, Kuzco reducing reliance on intermediaries while creating an open market, SFCompute pricing compute and creating spot markets, and Chroma becoming the go-to choice for open source vector databases, we see the intersection of crypto and AI creating secure, scalable systems for individuals and organizations alike.

Access to compute is quickly becoming synonymous with freedom of speech and, ultimately, the freedom to transact. 

These open trustless systems enable efficient transactions and verification, a crucial development as geopolitical multipolarity continues to rise, and more people need to ensure their interactions are secure without reliance on the state.

While Americans might not yet fully appreciate this, we’re seeing growing demand for these alternative systems and open models from those who are navigating increasing regulatory pressures and instability.

Europeans, whose governments are deploying strict limits on AI models are beginning to understand, those from countries facing geopolitical uncertainty (e.g., Israel, Ukraine), live it already, and those in countries with unreliable currencies and legal systems have been navigating anarcho-tyranny for decades.

But it can be precarious in the US as well, in California it was only the intervention of a veto from Gavin Newsom that prevented SB-1047 from restricting compute and hobbling the development of open source models.

Looking forward, this ability to access compute at scale may well parallel the right to transact. As nations confront their own risks, network state behaviors will become more prevalent, driven by the need for secure, decentralized systems that ensure autonomy in an increasingly unpredictable world.

We’re excited about the future of chaotic.capital and the opportunities ahead. As always, I’d love to talk about any of this with your discussions with you, so feel free to reach out. We’re just getting started, and there’s much more to come.

Categories
Community Politics

1302 and Virtual Insanity

It’s a crazy world we are living in

A number of my friends and colleagues have descended on Nashville this week for the Bitcoin Conference. I didn’t make the trek as southern heat in mid-July isn’t for me.

Despite being remote, it’s been easy keeping up on the event. I connected various friends who all different politics & interests. It’s been a delight to get selfies and “ussies” sent to me as my network connects in person. My virtual network exist IRL.

Meanwhile back in “extremely online” land where I spend my workday it feels as if the virtual insanity is at a fever pitch.

We’ve been recycling the same fears of virtual worlds since I was a kid. When I was in middle school the big hit was Jamiroquai’s Virtual Insanity.

You may remember it as a catchy funk hit where a gentleman in a big black hat dances through an underground city.

Oh, futures made of, now, virtual insanity
Now we all, we seem to be governed by a love
For these useless twisting of our new technology
And now there is no sound, for we all live underground
Yes, we do, oh

Jamiroquai “Virtual Insanity” c. 1996

It doesn’t seem like much has changed in the intervening quarter century or so. Everything is a twisting of technology as hyper partisans battle for mindshare on who decides on who can owns the virtual world and its creations.

I hope it provides some small comfort that the things we are challenged by not new. Intractable human nature doesn’t change much. So before drowning in the virtual insanity consider doing something in real life. I’d be happy to facilitate introductions.

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Biohacking Internet Culture Startups

Day 1297 and Crypto Libertarians in the Age of Cyperpunk Anarcho-Tyranny

We are living in the past’s version of the future. The Cyperpunk I read in my youth is now the stuff of my daily life. It’s not as sleek as in fiction but it’s hard not to feel like it’s William Gibson’s world and I’m just living it.

The clubs looked a little sleazier as we escaped the aughts but we had a renaissance in technical tools for producing culture. Digital music and multimedia have exploded entire social media economies. Could Vernor Vinge be right and our economies will turn to creating data to train for the singularity?

We are only now getting Idoru but we are veering towards Burning Chrome. Half the anime avatars in accelerationist e/acc chats are wearing Mirror Shades and everyone watches for crypto rugs. But we are getting our Mt Gox Bitcoin back right?

What about borderless corporate worlds and mass scale surveillance identity? That’s here too. When William Gibson wrote “Disneyland with the Death Penalty” I wonder if he knew it would be the nexus of the network state debate?

I can turn on club kid techno from 2002 and look at a reality in 2024 and its aesthetic is pretty close to the details Jonny Mnemonic. A global pandemic that affects the nervous system of those infected which was accidentally released from a lab.

Johnny Mnemonic movie poster.

We’ve even got the LoTeks in a Luddite rebellion against a world connected by dubiously transparent artificial intelligence owned by actual Zaibatsu multinationals with more power than nation states. Fact and fiction spinning hyperstition better than Nick Land ever dreamed.

The vulnerability of our entire world to our digital networks was made dramatically apparent yesterday when Crowdstrike took a hot knife through the butter of corporate infrastructure and left us with blue screens of death.

It’s not real but it could be

Snowcrash and Crash Override? It’s better. We got amazing memes and elaborate fakes of the Blue Screen of Death. It actually did suck for airlines and banks because regulatory capture is the stuff of systemic risk.

And lest you think we’ve got no biohacking in this Cyperpunk world after the pandemic we have a renaissance in systemic & holistic approaches to medicine. Suddenly everyone is aware of the risk in agribusiness. Seed oils is normie stuff. Instead of turning Luddite the Danish invented advance metabolic medicine to cope. Everyone is on GLP-1 agonists.

Mix in the rise of nicotine and THC and you’ve got a national post prohibition bloom of folklore cures whose research has been suppressed by pharmaceutical companies and regulatory bodies alike. Conspiracy? Maybe but just the sludge of industry.

When I look at my own work I see the future arriving. We fund decentralized compute and marketplaces for inferences. We fund open source database software. We fund multi-sigs for hyper transactional blockchains. We fund nuclear fission that pulls its materials the sky.

And in that all of the is our founders are global citizens who have to manage anarcho-tyrannical borders with visas controlled by incompetent governments and live through the geopolitics of wars fought with drones and propaganda. The future is already here. It’s actually pretty cool. Just watch out for nervous system tics.