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55 - Prophetic Prophetability

Prophetic Prophetability

55 - Prophetic Prophetability

⚜️ el Prof

Heart&SOL

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We are starting to hit a stride, publishing consistently again, going on week three of Heart & SOL. This week our coverege like everyone's is a reflection of the midterm election cycle that has dominated much of the last few weeks across financial, crypto, social and the general news feeds.
Prediction markets for election monitoring are another example of what was old is new again, while we return to a regular through line of ours; that cryptographically secure, decentralized data infrastructure is the best approach to balancing the benefits of modern technology and protecting ourselves from government overreach, something that is routinely committed by both parties. Most aggressively and egrigously by the red team the last two years. We implore you to please consider raising your vocie in opposition to thoughtless and reactionary calls for regulation that will only excerbate the problem its trying to address. Read on for more clarity!

- el Prof, Britt, & Muhammed

MONEY MONEY MONEY

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(Price changes reflect past 7 days — placeholder)

ai fever dream

Ask me not what color I root for, I play in shades of grey. That I’m happy to see a big, beautiful, blue sea before me, is unrelated to who won, but that we’ll mostly have gridlock moving forward and that maybe we can slow down the conversation and start cleaning house on the corruption side of things. I doubt it, but it’s nice to dream out loud. I’m also spiteful, and think the red team needs a time out for doubling back on campaign promises that were important to me and many Americans while advancing only the worst and most divisive of his vision.

The success of [prediction] markets, Nate Silver’s latest forecasting model and the lag of legacy media as coverage and intelligence points throughout the blue tsunami were fantastic shares from the team over at blockworks. Worth a read on its own.

As it plays out, Nate Silver’s model called it over the weekend, prediction markets called it on average 2 hours before legacy media, calling blue advantages and holding, and was also more stable compared to last election cycle which had endless cases of last minute flipping across the board.

Speaking of flip flopping, it's been two election cycles of promises to release the epstein files now. Which, like the panama papers before them, implicate a lot of wealthy, powerful people in gross behavior and have led to a lot of side characters seeing stage left. But this is a decentralized internet newsletter and we should talk about what I’m worried will come about as a result of this election cycle and the lack of critical thought it has truly been given by people on the shades of blue team. And it's a recurrent theme for longtime readers.

REGULATORY CAPTURE. The lack of nuance that is being brought to the conversation about regulating digital assets, cryptography, and artificial (STOOPID) intelligence is eating at my core. At least with President Carrot Face we got insane maxi deregulation, too bad it mostly gave us ponzis and illegal trading schemes operating as self regulated casinos, giving the space a bad name. 

Meanwhile the th0t leader founders over on twitter have flip flopped between AI and web3 so many times that nobody wants to do the actual work to build a crypto punk solution with all the parts laying out in front of us, a quantum threat looming, and other dystopian nightmares on the horizon. And the people i know, who are blue in the face with pride this week, are refusing to actually confront the technology frontier we are on the precipice despite being regular users of the technology delivering it. 

We need to be confronting what a free and open internet requires: learning the emerging tech, which like every other art form can be combined in novel non obvious ways to make interesting solutions.

Except regulatory capture most likely will happen first. And the calls for it from the top all the way down is deafening, sentator warren is absolutely salivating at the thought of destroying web3. But to crown Sam, Dario, Elon (AND Google & Meta & every big guy bad actor) who will be able to afford the insane compliance regimens being proposed, the winners of American AI, would be one of the dumbest short sighted decisions available to us. 

Chinese open source models will obliterate ours on shear non hallucinated recursive training size alone, while the public subsidizes the brain rot our privatized labs will continue to lazily pump out.

But more than that, its the digital id systems that will roll out with them for proof of humanity in contrast to the increasingly sophisticated bots polluting our metaverse. And I am staunchly against a centralized version of that. Whether it’s the red team’s citizen surveillance state infrastructure or the blue team’s digital health id software backdoor, the orwellian future is already here and more people should stand up and do something about it.

To play the game of regulation, is to chop a hydras head. Play a different game, maybe we can get different results. I implore you to learn how cryptography can be applied as a quantum secure solution for sovereign identity data management, and flip the script on our surveillance driven future internet of everything, that i think relatively few people actually want.

- el Prof



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Crypto spent $176 million on this midterm cycle, and the best thing it bought was an expensive hard learned lesson.

Reuters counted that figure across more than 100 races through October 20, with $150.8 million of it moving through the Fairshake SuperPAC and a marquee bet in Ohio. Fairshake spent $30 million against Sherrod Brown in late September, added an additional $9 million in late October, with final spend counts estimated to be more than $62 million spent against Brown alone nearly 1/3 of it's funds. And he still won. It only took AIPAC $35M to oust Rep Massey earlier this year, still a mind numbing amount.

The negative press only seemed to be fuel for Sherrod Brown with his poll numbers rising with the additional negative coverage.

So why were the cryptoPACs so focused on Brown? Data centers.

The state has around 270 faclities planned with many operational already. At a local level 21 of the 41 jurisdictions data center measures on ballots nationwide this year sat in Ohio alone. A Bowling Green State University poll found 75% of likely Ohio voters opposed to one going up in their own community. Sixty-three percent opposed them statewide.

None of this makes the spend dumb, as they were attacking Brown because his party has had a great stump to rail against the literal machines that are consuming water and electricity in these towns and offering little back. And data centers are as equally important to securing the various blockchains as they are for utilizing their compute for AI workloads, so its a logical vested interest for the industry; especially in a key midwestern state like Ohio. But it was largely tone deaf, when paying for better education of the potential electorate may have been a bettter use of funds and this newsletter has never been especially sympathetic to the industry’s biggest players anyway. 

Fairshake says 53 of 58 candidates the CryptoPACs backed in primaries won, and defending 32 House votes matters if the text has to move through that chamber twice. But efficiency of the spend is most exposed in Ohio, and it is the same error as a brand dropping an NFT collection in 2022 and calling the silence a rollout problem.

So here is the uncomfortable version for degens. Two years ago, when Crypto.com sued the SEC and we went looking for what would actually shift the ground, the answer we landed on was that it would have to come from a cultural movement, and those tend to start from the bottom up. Call this $176 million worth of confirmation. That the days of buying influence through sheer brute force are dwindling.

- Muhammed

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