Michael Lewis’ Book Comes Under Scrutiny
Michael Lewis’ latest book, “Going Infinite: The Rise and Fall of a New Tycoon,” is facing criticism for its lack of skepticism in telling the story of the collapse of the FTX cryptocurrency exchange and its boss, Sam Bankman-Fried. Critics argue that Lewis relies too heavily on Bankman-Fried’s version of events, presenting a defense of the accused fraudster ahead of his trial. Meanwhile, Zeke Faux’s book, “Number Go Up: Inside Crypto’s Wild Rise and Staggering Fall,” offers a more convincing and entertaining account of the cryptocurrency scam.
The Seduction of Bankman-Fried’s Nonsense
Bankman-Fried, with his boyish charm and grandiose claims of wealth, successfully seduced venture investors, politicians, and even sports and entertainment stars into his cryptocurrency empire. However, Faux argues that Bankman-Fried’s fortune was built on quicksand, with the values of the cryptocurrency tokens he promoted being set based on arbitrary measures. While some, like Bloomberg’s Matt Levine, saw through the facade, Lewis seemed enchanted by Bankman-Fried’s tales, even entertaining the notion that he could become the world’s first trillionaire.
The Devastating Consequences of Cryptocurrency Scams
Faux’s book delves into the devastating effects of cryptocurrency scams on innocent people. Many small investors and victims have lost their life savings, marriages have crumbled, and hope has been obliterated. Faux takes readers on a journey to the epicenters of the crypto scam, highlighting the human trafficking and deception that underpins these schemes. He exposes the hucksters, zealots, opportunists, and outright scammers who have profited from cryptocurrencies.
Lewis’ Lack of Understanding and Skepticism
One of the main criticisms of Lewis’ book is his failure to grasp the fundamental nature of cryptocurrencies. Faux argues that cryptocurrencies have no practical use as currencies, lack intrinsic value, and rely on artificial scarcity or abundance. Lewis does not offer readers this crucial insight and instead perpetuates the pretense that Bankman-Fried’s FTX had value. Faux, on the other hand, saw the red flags from the beginning and deemed crypto to be even dumber than he had imagined.
The Churlish Dismissal of Criticism
Lewis’ book has also been criticized for his dismissive attitude towards those who question the legitimacy of cryptocurrencies. He accuses U.S. regulators of being brainwashed or bought off by Wall Street and suggests that the crypto version of the financial system is superior. Critics argue that Lewis fails to confront the fact that cryptocurrencies are fundamentally flawed and have caused immense harm to unsuspecting individuals.
The Verdict: Faux’s Insight Prevails
While Lewis’ book has been hailed as a foundation story of cryptocurrency, Faux’s book offers a more insightful and critical perspective. Faux’s extensive research, interviews, and understanding of the crypto world provide a compelling narrative that exposes the true nature of these scams. Faux’s judgment of Bankman-Fried as an embezzler and his indictment of cryptocurrencies as serving no significant financial purpose resonate more strongly than Lewis’ enchantment with Bankman-Fried’s story. As efforts to legalize and regulate cryptocurrency continue, Faux’s book serves as a cautionary tale for lawmakers, investors, and true-crime enthusiasts.