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Bitcoin is a strange financial instrument that is both a currency and an investment. You can use bitcoins to buy and sell things online, or you can buy and hold (or hodl) bitcoins in the hopes of turning a profit. Bitcoin is like Venmo (or PayPal), but if you sent and received stocks. This makes Bitcoin a truly unique financial invention

The British Empires conversion of the vast indigenous economy of North America into aristocratic property provides an illuminating paralell, in fact, for a company like Amazon, whose trillion dollar market capitalization is derived from the usurpation of a thriving pre existing system of shops, markets, libraries and the like. With their bundles of patents and global monopolies, twenty-first-centruy tech conglomerates have swelled to the scale of eighteenth century trading companies and with a speed quite foreign to the plodding first economy. But they are more than just businesses. Silicon Valley firms have a profound impact on world organization, and key players such as Peter Thiel creates of PayPal, early investor in Facebook, and cofounder of the surveillance company Palantir Technologies possess political power greater than most heads of state. The old caveats apply once more. First, the second economy serves elites almost exclusively. Again fit is chiefly financialized, and building financial instruments remains the preserve of the rich. 84 percent of corporate stock is owned by the wealthiest 10 percent. But even this decile is largely denied access to the heart of the second economy. Some 80 percent of Facebook stock. worth over half a trillion dollars is owned by 25 individuals and institutions, though Mark Zuckerberg retains only 28 percent of the company, this includes a vital 60 percent of the Class B voting shares. Since Facebook is an entity comparable in scale to a nation state, and serves some of the same functions, this determination not to share political power is instructive. Valuations of such companies are inflated by their monopolistic nature and by the financial institutions that control them to the point of total departure form the first economy. This fall, during the most serious economic recession since the 1930s, the values of Tesla, Amazon and Facebook all hit record stock-market highs

Historically, manipulating positive news to increase the demand for a stock has been a way to drive up the price before selling it at an inflated figure. The illegal tactic, better known as ‘pump and dump’, is prohibited because markets need our trust to function. Yet soon the crypto surge appeared to be the result of just such a ploy. Writing in Vox, William Harris, the former CEO of PayPal, called Bitcoin ‘a colossal pump and dump scheme, the likes of which the world has never seen’ in an article headlined ‘Bitcoin is the greatest scam in history’.

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