Crypto Prices Crashed, But True Believers Are Holding On
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Crypto Prices Crashed, But True Believers Are Holding On

A divide is growing between investors looking to make money and those who believe in crypto’s mission.

By PIA SINGH
Tue, Aug 16, 2022 11:30amGrey Clock 4 min

Crypto prices plunged this year, but Drew Larsen says that is no concern.

Over the past two years, Mr. Larsen, 54, has poured about 10% of his savings into cryptocurrencies like bitcoin, Ethereum and solana. He believes it is a smart hedge for his investment portfolio, the rest of which is in real estate, stocks and bonds. But more than that, he feels a deep connection to the idea of digital assets, which makes the pain of bitcoin’s plunge this year a lot more bearable.

“I actually do think it has the potential to save the world,” said Mr. Larsen, a founder of two software companies who now lives in Colorado with his family. So far, his crypto holdings have lost about 40% in value this year.

With the crypto market crashing, there is a growing divide between investors who are looking to make money and those who believe in its mission. Some true believers, like Mr. Larsen, tout crypto as a way to replace, or at least push back against, big banks and the traditional fiat-money system. Others are more enthusiastic about blockchain, a kind of digital ledger underpinning cryptocurrencies, that could be used to change how records are tracked and stored in areas as varied as medicine and real estate.

Some of the traders knuckling down on crypto are fairly well off, which means they have money to lose—and a higher tolerance for risk. Many, including Mr. Larsen, didn’t have their investments tied up in lending platforms like Celsius Network LLC and Voyager Digital Ltd., both of which have frozen withdrawals and filed for bankruptcy protection. Customers there haven’t been able to access their money for weeks.

Some investors buy cryptocurrencies as if they are stocks, holding them in a crypto exchange and hoping prices rise so they can make a profit. Others deposit their crypto into yield-earning accounts with firms that then invest those digital assets or lend them out to others for a fee. Bitcoin, the biggest cryptocurrency, is riding the wave of July’s market rally. It is up about 28% in July, but is still down about 65% from its November record high.

Maria Saavedra, a 31-year-old software test engineer in California, said she views most cryptocurrencies as hyped-up assets with little legitimate value. But in March, after the crypto market had already endured a rough few months, she started buying the two biggest cryptocurrencies, bitcoin and Ethereum. She has invested about US$8,000 total.

Ms. Saavedra says the plunge in prices makes it a great time to buy on the cheap. She bought $1,000 in Ethereum on Thursday when leading cryptocurrencies rallied after the Federal Reserve’s interest-rate increase.

Like Mr. Larsen, she said she supports stricter regulation for the crypto market. She thinks it would give the industry more legitimacy—and probably give a boost to her holdings.

Her other long-term investment strategy? Handbags. Ms. Saavedra recently paid $10,000 for a black Hermès Kelly bag and plans to cash out the investment when she nears retirement. Until then, the gold-plated bag sits in her closet, resting in its original cloth bag and stuffed to keep its shape.

Zachary Bertucci, a 25-year-old real-estate investment analyst in Chicago, has put about 10% of his investment portfolio in Ethereum and lesser-known cryptocurrencies like chainlink and polygon. Mr. Bertucci started buying crypto in September, when prices were still on the way up. His holdings have lost about half their value,but he plans to keep buying more each month and hopes to eventually rake in enough gains to buy an investment property.

“That money you’re investing, it could go away or it could triple,” Mr. Bertucci said. “As long as you’re willing to accept that risk, then you’re OK.” The other 90% of his investment portfolio is in stocks and an ETF that mirrors the S&P 500.

Not all crypto believers are loading up.

Tyler Lahti began investing in crypto in 2014, adding about $5,000 total in bitcoin and Ethereum up until early this year. After the recent downturn, he doesn’t plan to add more.

Still, Mr. Lahti said he is bullish on the sector. As an accountant, he has high hopes for smart contracts, which are software programs on the blockchain that automatically execute transactions between parties.

“If it does work out, it’s beneficial to the world and I’ll make money,” said Mr. Lahti, who is 31 and lives in Georgia.

Mr. Larsen, the Colorado entrepreneur, has experience dealing with risk. He co-founded a sales-related tech company in 1999, shortly before the dot-com bubble burst, then exited in 2009. He sold another venture, a software-based workout platform, in 2019. The following year, he got into crypto, partly because he didn’t want to “sit around doing nothing.”

Mr. Larsen attends a monthly crypto happy hour, where topics of conversation can range from the price of bitcoin to how to persuade your spouse to invest in it. Still, he said he doesn’t believe most cryptocurrencies are for the average investor, likening crypto to investing in early-stage startups.

The exception, in his mind, is bitcoin. He views it as a long-term savings method, and he thinks he might one day hand down his bitcoin holdings to his children.

“I guess I would say I came for the money,” Mr. Larsen said, “but stayed because of the philosophy.”

Reprinted by permission of The Wall Street Journal, Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: July 30, 2022.



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The Uglification of Everything

Artistic culture has taken a repulsive turn. It speaks of a society that hates itself, and hates life.

By Peggy Noonan
Fri, Apr 26, 2024 5 min

I wish to protest the current ugliness. I see it as a continuing trend, “the uglification of everything.” It is coming out of our culture with picked-up speed, and from many media silos, and I don’t like it.

You remember the 1999 movie “The Talented Mr. Ripley,” from the Patricia Highsmith novel. It was fabulous—mysteries, murders, a sociopath scheming his way among high-class expats on the Italian Riviera. The laid-back glamour of Jude Law, the Grace Kelly-ness of Gwyneth Paltrow, who looks like a Vogue magazine cover decided to take a stroll through the streets of 1950s Venice, the truly brilliant acting of Matt Damon, who is so well-liked by audiences I’m not sure we notice anymore what a great actor he is. The director, Anthony Minghella, deliberately showed you pretty shiny things while taking you on a journey to a heart of darkness.

There’s a new version, a streaming series from Netflix, called “Ripley.” I turned to it eagerly and watched with puzzlement. It is unrelievedly ugly. Grimy, gloomy, grim. Tom Ripley is now charmless, a pale and watchful slug slithering through ancient rooms. He isn’t bright, eager, endearing, only predatory. No one would want to know him! Which makes the story make no sense. Again, Ripley is a sociopath, but few could tell because he seemed so sweet and easy. In the original movie, Philip Seymour Hoffman has an unforgettable turn as a jazz-loving, prep-schooled, in-crowd snob. In this version that character is mirthless, genderless, hidden. No one would want to know him either. Marge, the Paltrow role in the movie, is ponderous and plain, like a lost 1970s hippie, which undercuts a small part of the tragedy: Why is the lovely woman so in love with a careless idler who loves no one?

The ugliness seemed a deliberate artistic decision, as did the air of constant menace, as if we all know life is never nice.

I go to the No. 1 program on Netflix this week, “Baby Reindeer.” People speak highly of it. It’s about a stalker and is based on a true story, but she’s stalking a comic so this might be fun. Oh dear, no. It is again unrelievedly bleak. Life is low, plain and homely. No one is ever nice or kind; all human conversation is opaque and halting; work colleagues are cruel and loud. Everyone is emotionally incapable and dumb. No one laughs except for the morbidly obese stalker, who cackles madly. The only attractive person is the transgender girlfriend, who has a pretty smile and smiles a lot, but cries a lot too and is vengeful.

Good drama always makes you think. I thought: Do I want to continue living?

I go to the Daily Mail website, once my guilty pleasure. High jinks of the rich and famous, randy royals, fast cars and movie stars, models and rock stars caught in the drug bust. It was great! But it seems to have taken a turn and is more about crime, grime, human sadness and degradation—child abuse, mothers drowning their babies, “Man murders family, self.” It is less a portal into life’s mindless, undeserved beauty, than a testimony to its horrors.

I go to the new “Cabaret.” Who doesn’t love “Cabaret”? It is dark, witty, painful, glamorous. The music and lyrics have stood the test of time. The story’s backdrop: The soft decadence of Weimar is being replaced by the hard decadence of Nazism.

It is Kander and Ebb’s masterpiece, revived again and again. And this revival is hideous. It is ugly, bizarre, inartistic, fundamentally stupid. Also obscene but in a purposeless way, without meaning.

I had the distinct feeling the producers take their audience to be distracted dopamine addicts with fractured attention spans and no ability to follow a story. They also seemed to have no faith in the story itself, so they went with endless pyrotechnics. This is “Cabaret” for the empty-headed. Everyone screams. The songs are slowed, because you might need a moment to take it in. Almost everyone on stage is weirdly hunched, like a gargoyle, everyone overacts, and all of it is without art.

On the way in, staffers put stickers on the cameras of your phone, “to protect our intellectual property,” as one said.

It isn’t an easy job to make the widely admired Eddie Redmayne unappealing, but by God they did it. As he’s a producer I guess he did it, too. He takes the stage as the Emcee in a purple leather skirt with a small green cone on his head and appears further on as a clown with a machine gun and a weird goth devil. It is all so childish, so plonkingly empty.

Here is something sad about modern artists: They are held back by a lack of limits.

Bob Fosse, the director of the classic 1972 movie version, got to push against society’s limits and Broadway’s and Hollywood’s prohibitions. He pushed hard against what was pushing him, which caused friction; in the heat of that came art. Directors and writers now have nothing to push against because there are no rules or cultural prohibitions, so there’s no friction, everything is left cold, and the art turns in on itself and becomes merely weird.

Fosse famously loved women. No one loves women in this show. When we meet Sally Bowles, in the kind of dress a little girl might put on a doll, with heavy leather boots and harsh, garish makeup, the character doesn’t flirt, doesn’t seduce or charm. She barks and screams, angrily.

Really it is harrowing. At one point Mr. Redmayne dances with a toilet plunger, and a loaf of Italian bread is inserted and removed from his anal cavity. I mentioned this to my friend, who asked if I saw the dancer in the corner masturbating with a copy of what appeared to be “Mein Kampf.”

That’s what I call intellectual property!

In previous iterations the Kit Kat Club was a hypocrisy-free zone, a place of no boundaries, until the bad guys came and it wasn’t. I’m sure the director and producers met in the planning stage and used words like “breakthrough” and “a ‘Cabaret’ for today,” and “we don’t hide the coming cruelty.” But they do hide it by making everything, beginning to end, lifeless and grotesque. No innocence is traduced because no innocence exists.

How could a show be so frantic and outlandish and still be so tedious? It’s almost an achievement.

And for all that there is something smug about it, as if they’re looking down from some great, unearned height.

I left thinking, as I often do now on seeing something made ugly: This is what purgatory is going to be like. And then, no, this is what hell is going to be like—the cackling stalker, the pale sociopath, Eddie Redmayne dancing with a plunger.

Why does it all bother me?

Because even though it isn’t new, uglification is rising and spreading as an artistic attitude, and it can’t be good for us. Because it speaks of self-hatred, and a society that hates itself, and hates life, won’t last. Because it gives those who are young nothing to love and feel soft about. Because we need beauty to keep our morale up.

Because life isn’t merde, in spite of what our entertainment geniuses say.

 

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