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Culture War Roundup for the week of November 7, 2022

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Not sure if folks here keep up with crypto much, but over the weekend FTX had a liquidity crisis and agreed to sell to Binance. This is pretty huge news - FTX was one of the bigger crypto exchanges known for buying out other flailing firms that had crises. This may lead to a larger spiral within the crypto economy. @aqouta curious for your take here.

Also as some folks here may know Sam Bankman-fried of FTX wealth is one of the three major funders of the Effective Altruism movement. Given the circumstances of this bailout, it's likely that FTX was sold for an incredibly small amount - if Binance didn't help them with the liquidity crisis they almost certainly would've fallen to $0 value. Unfortunately this means that the money EA has been pledged/receiving from SBF is going to dry up. I'm curious to see if the EA movement can weather this storm, as they have been rather aggressively growing and it looks like they've been betting on this funding being in place for a long time.

Time to add some wild speculation - Changpeng Zhao, the CEO of Binance, is Chinese. Now that Binance owns FTX, they are clearly the dominate player in the crypto space, or at least positioned well to become the dominant exchange. I wonder if this shift will cause China to reconsider their decision to make crypto illegal? Or is it too much of a risk to state power?

Update: This definitely seems like a coordinated attack. Apparently Coinbase released an article slamming FTX’s native token, then Binance pulled out their entire stake. Without those two events not sure if this would’ve happened.

That he would gamble and eventually lose was foreshadowed here

https://conversationswithtyler.com/episodes/sam-bankman-fried/

COWEN: Okay, but let’s say there’s a game: 51 percent, you double the Earth out somewhere else; 49 percent, it all disappears. Would you play that game? And would you keep on playing that, double or nothing?

Eh but he didn't immediately say yes - SBF went on to say a bunch of caveats and talk about parallel universes and the nature of infinity. I don't know if that conversation leads to him gambling and eventually losing?

With one caveat. Let me give the caveat first, just to be a party pooper, which is, I’m assuming these are noninteracting universes. Is that right? Because to the extent they’re in the same universe, then maybe duplicating doesn’t actually double the value because maybe they would have colonized the other one anyway, eventually.

Again, I feel compelled to say caveats here, like, “How do you really know that’s what’s happening?” Blah, blah, blah, whatever. But that aside, take the pure hypothetical.

Just before he said yes, Cowen was trying to get him to back down due to St Petersberg paradox:

COWEN: Should a Benthamite be risk-neutral with regard to social welfare?

BANKMAN-FRIED: Yes, that I feel very strongly about.

Ahh ok that slipped by me. Thanks for clarifying.