I have been thinking about Nic Carter's recent twitter outburst, which I found curious. I know he has been outspoken recently regarding what he perceives as toxic bitcoin maximalism, but the tweet seemed a bit unhinged.

Nic Carter is a smart guy, and he has honestly taught me a lot. His "Chokepoint 2.0" stuff was insightful. I have frequently listened to his podcast.

That's why this tweet surprised me. He was clearly rattled by a few twitter trolls. Within the incredibly long tweet he said, among other things, that those agreeing with the SEC that altcoins were securities were mainly new hodlers who were losing money in bitcoin. This assertion was odd, inaccurate, and condescending. Jack Mallers is not a guy who just jumped into bitcoin recently. I don’t think you can put Jack in that category, nor Michael Saylor, Max Keiser, Jimmy Song, Samson Mow, Marty Bent, Saifedean Ammous, and many other fairly well off folks who have been around a while.

He also claimed that maxis were just in it for the parties. Are there new people who enjoy socializing with their fellow hodlers? Sure. Is that the only reason they buy bitcoin? I doubt it. In general, Nic seems to characterize just about everyone who buys bitcoin as being in it solely to get rich. Is Anita Posch attending any fancy gallery openings in Zimbabwe or Zambia? Not likely. I doubt anyone there can afford the expensive rum Nic is selling. I singled her out as an example, but there are people working all over the world bringing bitcoin to the unbanked. Does Nic Carter think of them as religious zealots? I don't know.

One of Nic’s recurring themes is that bitcoin is like a religious cult to some people. He used the phrase millenarian eschatology. I had to look it up. He doesn’t need to use these big words to let us know he’s smart. He is smart, and he makes a valid point. For many, bitcoin is more than just a means of payment. Some do get carried away with strict adherence to dogma. Bitcoiners do tend to imagine a new world where things are more fair for everyone. They want to see the world change for the better. But their motives are not purely selfish. Bitcoiners often put their sats where their mouths are. During the Canadian Freedom Convoy, the generosity of bitcoiners was incredible. They gave to a cause they believed in. There was absolutely no expectation of financial gain.

I think the reason the bitcoin community can at times seem like a religion is that bitcoin causes you to consider things beyond your own material gain. Contrary to Nic’s notion that hodlers are sitting around waiting for their big payday so they can lord it over everyone, I think bitcoin awakens a sense of morality and a concern for the unfair financial system most humans live under. People like Alex Gladstein and Anita Posch instilled in me a desire to help those less fortunate than I am. They opened my eyes to the human pain caused to the developing world by organizations like the World Bank and the I.M.F. If that's religious, so be it.

I looked into Nic Carter's personal investments and those made through Castle Island Ventures. There's not a word about any charitable projects or initiatives. He doesn’t have grandiose notions about bitcoin changing the world. He sees bitcoin as one of many tools. Nic worked for Fidelity. He’s a venture capitalist. That is his world. Maybe his perception is shaped by the way he makes a living. I’m not judging here. There’s no right or wrong answer. Only time will tell what the future holds. He’s been involved longer than me, despite the fact that I’m much older than he is. He embraces bitcoin and “crypto” and “blockchain”, whatever he wishes to call it, but he makes his living with fiat finance. That’s his training. He enjoys the cantillon benefits. He thinks that fractional reserve banking is good, and to see it as fraud is “stupid”. His investments are funded by the U.S. financial system. He is one of the elite. His dad works at the World Bank. To bring this up is not an attack on his father. I’m happy to hear the senior Mr. Carter likes bitcoin. It just shows perspective. Nic Carter is not a pleb, hoping to break even soon on his .014 btc holding. But the Securities and Exchange Commission, the referee that governs his playing field, has got him upset.

I did find a possible reason why Nic might be a little on edge. One of the companies in Castle Island Venture's portfolios is Moonpay, an exchange that offers the average investor the opportunity to buy over 80 cryptocurrencies, including those now declared securities by the S.E.C. If this company rings a bell, it's because it was responsible for the IOTA hack.

MoonPay's partners include Binance and Trust Wallet.

MoonPay is known for being easy to use for new investors. One of the downsides, though, is that it lacks basic trading tools that would help investors make more informed trades, like stop limits or market orders. MoonPay's transactions are opaque to the user. It is also known for having some of the highest transaction fees in the industry.

Nic Carter is an educated guy. He holds an MSc in finance and investment from the University of Edinburgh. He knows all about the Howey test. He knows all about trading unregistered securities. He knows the S.E.C. will be taking a look at MoonPay.

Castle Island also has many other investments that may raise a few eyebrows. According to its website, it is a “venture capital firm focused exclusively on public blockchains.” Evaluate is a site for trading nfts across blockchains and marketplaces. Many of these blockchains either are or will soon be deemed unregistered securities. Within Castle Island is a company called flipside, which provides blockchain data for “all leading protocols’. Soon there may no longer be a need for this data.

Don't get me wrong. I'm not a fan of Gary Gensler. I still have my own questions about him and his cozy relationship with Sam Bankman-Fried. If there's any truth to the allegations that he was involved in a recent short sale related to the cases brought against Binance and Coinbase, I would be happy to see him investigated. But, Nic Carter asserts that the S.E.C. is over reaching. The Howey Test was established by the U.S. Supreme Court for a good reason. Through the registration process disclosures are made. Funding sources are revealed. Details of pre mines would see the light of day. The ICO scams that Nic Carter surprisingly brings up himself in the tweet involve many coins he is indirectly shilling. Solana comes to mind. There are many more.

I don't know where all this leads. I don't imagine the S.E.C. is finished investigating U.S. exchanges. When the dust settles, the blockchains that Castle Island Ventures invests in may no longer exist, or may be greatly diminished in usage and value.

Perhaps Nic Carter can be forgiven if he's a little anxious.