Technology
‘Trading is gambling, no doubt about it’ – how cryptocurrency dealing fuels addiction | Cryptocurrencies
Steven has lost more bitcoin than most people will ever own.
Raised on the remote Shetland archipelago, he left school at 13 to become a trawlerman before moving into construction, eventually earning £85,000 a year digging tunnels for Crossrail.
Despite his self-made success, compulsive cryptocurrency trading, alcohol and drug use took over his life.
In the fog of multiple addictions, he lost the “addresses” of between five and 10 bitcoins, rendering his digital buried treasure – worth up to £300,000 today – impossible to retrieve.
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What is cryptocurrency?
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Cryptocurrencies are an alternative way of making payments to cash or credit cards. The technology behind it allows the ‘money’ to be sent directly to others without it having to pass through the banking system. For that reason they are outside the control of governments and are unregulated by financial watchdogs – and transactions can be made in a way that keeps you reasonably pseudonymous.
If you own a crypto-asset you control a secret digital key that you can use to prove to anyone on the network that a certain amount of that asset is yours. If you spend it, you tell the entire network that you have transferred ownership of it, and use the same key to prove that you are telling the truth. Over time, the history of all those transactions becomes a lasting record of who owns what: that record is called the blockchain.
Bitcoin was one of the first and biggest cryptocurrencies and has been on a wild ride since its creation in 2009, sometimes surging in value as investors have piled in – and occasionally crashing back down. Dogecoin – which started as a joke – has also seen a stratospheric rise in value.
Sceptics warn that the lack of central control make crypto-assets ideal for criminals and terrorists, while libertarian monetarists enjoy the idea of a currency with no inflation and no central bank.
The whole concept of cryptocurrencies has been criticised for its ecological impact, with “mining” for new coins requiring vast energy reserves and the associated carbon footprint of the whole system.
Richard Partington and Martin Belam
Steven spotted the potential of bitcoin early and he had a talent for trading. But even if he had that money now, his addiction means it would soon be squandered.
“Trading is gambling, there’s no doubt about it,” he says.
“I studied and studied. I taught myself how to be a good trader and tried really hard to manage my accounts and stick to a set of rules.
“But my mind would twist and I’d go all in, like a poker player that thought he had the perfect hand. I was convinced I was going to be a bitcoin millionaire.”
Now in recovery at the Castle Craig residential treatment clinic in Scotland, Steven fears that legions of young people are being lured into high-risk trading and potentially addiction, based on the same misguided quest for untold riches.
“A whole generation think that with a little mobile phone they can win, that they can … beat the market,” he says.
“It scares the bejesus out of me.”
Steven’s fears are founded partly on crypto’s rapid emergence into the mainstream.
When he started investing in 2015, digital currencies meant nothing to most people.
Now, they are being touted as a more democratic alternative to a monopolistic and exploitative global financial system.
As the Guardian revealed on Friday today, crypto firms launched a record-breaking promotional push in London last year, targeting millions of commuters with 40,000 adverts on billboards, at tube stations, in carriages and across the side of double decker buses.
Advertisers included relatively obscure names such as Hex, Kraken and Puglife about whom consumers know little, if anything.
Meanwhile, football clubs and players, not to mention globally recognised celebrities, tout crypto investments on a daily basis via social media.
This week, reality TV star Kim Kardashian West and boxer Floyd Mayweather Jr were named in a lawsuit alleging that they helped promote crypto firm EthereumMax, as it made “false and misleading” statements that left investors nursing heavy losses.
An Instagram post about EthereumMax, to Kardashian’s 250 million followers, may have been the most widely seen financial promotion of all time, according to the head of the UK’s Financial Conduct Authority (FCA).
Yet despite their ascendancy – and warnings that governments could suffer “limitless” losses – cryptoassets remain unregulated in the UK, pending a Treasury review.
That means that the FCA, the UK’s financial regulator, is all but powerless to influence how the industry behaves.
While some trading platforms that offer digital assets are regulated – because they also offer more traditional financial instruments – crypto coins and tokens are not.
Cryptoasset executives do not have to prove that they are fit and proper people to take people’s money. The companies they run are not required to hold enough cash to repay investors if they go bust. Nor must they worry about the FCA’s stipulation that financial promotions, such as those splashed across public transport in London, are fair, clear and not misleading.
Amid the marketing blitz, the Advertising Standards Authority is the only watchdog that has bared its teeth. It is investigating one advert by the cryptocurrency Floki Inu and has already banned one for Luno Money.
“If you’re seeing bitcoin on a bus, it’s time to buy,” the Luno advert insisted, contrary to prevailing investment wisdom.
Luno Money told the Guardian it would welcome an “effective regulatory framework”.
But in the ongoing vacuum of oversight, experts fear that cautionary tales of addiction, such as the one told by Steven, are being drowned out by powerful, overwhelmingly positive messages.
To monitor the type of messaging sent out by marketing teams, the Guardian created an experimental cryptocurrency portfolio – holding a mixture of bitcoin, ether and Shiba Inu.
As bitcoin slumped towards the end of 2021 and into 2022, having reached all-time highs just weeks earlier, the Twitter account of smartphone trading app eToro remained doggedly optimistic.
“Is bitcoin on its way to a new high?,” it asked, as the slide began. “We’ve seen bitcoin rally before. But could this be the one to take it to the MOON?”
The answer, for the time being at least, was “No”. But holders of crypto portfolios were encouraged to stay positive.
“Your account gained 1.87% yesterday,” one app notification read, as the slump abated. “You had a good day. Share the news with everyone.”
No such invitation appeared on the far more frequent days when the value of the Guardian’s portfolio went down.
“It’s a very strategic marketing ploy,” says Dr Anna Lembke, one of the world’s foremost addiction experts, professor of psychiatry at Stanford University School of Medicine and author of the book Dopamine Nation.
“They’re encouraging you to amplify the wins and ignore the losses, creating a false impression there are more wins.”
Asked about this, eToro says that it is “committed to helping retail investors engage with each other and foster an environment of learning and collaboration”, adding that its platform is not “gamified”.
According to eToro’s UK managing director, Dan Moczulski, some users make their account public so that “all investments are visible to others, whether they are profitable or not”.
The company said it also provides educational tools, performs know-your-customer checks and encourages long-term, diversified investing.
But Dr Lembke is concerned by the potential for the social media element to fuel compulsive behaviour in crypto trading, an activity she says bears the hallmarks of addictive gambling products but without the acknowledged risk.
“When you mix social media with financial platforms, you make a new drug that’s even more potent,” she says.
Social media posts pushing crypto frequently refer to Fomo – the fear of missing out – fuelling an urge to participate.
“You get this herd mentality where people talk to each other about what the market is doing, they have wins together, losses together, … an intense shared emotional experience.”
“We get a little spike in dopamine, followed by a little deficit that has us looking to recreate that state.”
This, she says, echoes characteristics of gambling but with a crucial difference.
“It’s less stigmatised,” she says. “It has this socially sanctioned status as something that maverick smart people do.”
Parallels with gambling are becoming harder to ignore.
GamCare, which runs the National Gambling Helpline, said it fields about 20 calls a week related to crypto. Callers reported trading for 16 hours a day, making huge losses and struggling to cope with the guilt.
As with gambling, where every one addict is estimated to harm seven other people, many were suffering at the hands of someone else’s habit.
One recounted how her partner’s trading obsession was leading them to spend time away from the family. Another said their partner had taken to trading while in recovery from alcoholism, spending every waking hour making trades.
GamCare has even dealt with young patients who bought digital coins in a desperate attempt to make enough money to get on to the property ladder, only to lose life-changing sums.
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At Castle Craig, where Steven is receiving treatment, the first crypto addict arrived at the clinic in 2016, followed by more than 100 since then.
“More and more people are isolated and are doing this [trading], especially since Covid,” says Tony Marini, the senior specialist therapist at the clinic and a recovering gambling addict himself.
“It’s tenfold already since 2016, so what’s it going to be like in the next five years?”
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Choco: Revolutionizing The FoodTech Industry With Innovation & Sustainability | EU20
By Clint Bailey
— In the rapidly evolving world of food technology, European startup Choco has emerged as a pioneering force. With its website, Choco.com, this Berlin-based company is transforming the way food industry professionals operate by leveraging innovative digital solutions. By linking restaurants, distributors, suppliers, and producers on a single platform, Choco is streamlining the supply chain process while promoting sustainability.
Let’s explore the journey of Choco.com and its impact on the overall foodtech industry.
- Company: Choco Technologies GmbH
- Website: www.Choco.com
- Head Office: Berlin, Germany
- Year Established: 2018
- Founders: Choco was co-founded by Daniel Khachab, Julian Hammer, and Rogerio da Silva.
- Industry: Choco operates in the foodtech industry, specifically focusing on digitizing the supply chain for the food industry.
- Funding: Choco has secured significant funding rounds from investors, including Bessemer Venture Partners & Coatue Management.
- Market Presence: Choco has a strong presence in several European cities, including Berlin, Paris, London & Barcelona.
- Mission: Choco aims to revolutionize the food industry by leveraging technology to simplify supply chain management, promote sustainability, and reduce food waste.
Simplifying Supply Chain Management
One of the core focuses of Choco is to simplify supply chain management for food businesses. Traditionally, the procurement process in the food industry has been cumbersome and inefficient, with numerous intermediaries and manual processes. Choco’s digital platform replaces the traditional paper-based ordering system, allowing restaurants and suppliers to communicate and collaborate seamlessly.
Choco’s platform enables restaurants to place orders directly with suppliers, eliminating the need for phone calls, faxes, or emails. This not only saves time but also reduces the likelihood of errors and miscommunications.
By digitizing the ordering process, Choco improves transparency, making it easier for restaurants to compare prices, track deliveries, and manage inventory efficiently.
Streamlining Operations For Suppliers & Producers
Choco’s impact extends beyond restaurants. The platform also provides suppliers and producers with valuable tools to streamline their operations. By digitizing their product catalogs and integrating them into the Choco platform, suppliers can showcase their offerings to a wide network of potential buyers.
Suppliers benefit from increased visibility, enabling them to reach new customers and expand their market presence. Moreover, Choco’s platform helps suppliers manage their inventory, track orders, and plan deliveries effectively. These features enhance operational efficiency, reduce waste, and ultimately contribute to a more sustainable food system.
Promoting Sustainability & Reducing Food Waste
Choco recognizes the critical importance of sustainability in the food industry. According to the United Nations, approximately one-third of the world’s food production goes to waste each year. By digitizing the supply chain and enabling more efficient ordering and inventory management, Choco actively works to combat this issue.
Choco’s platform facilitates data-driven decision-making for restaurants, suppliers, and producers. By analyzing purchasing patterns & demand, Choco helps businesses optimize their inventory levels, reducing overstocking and minimizing food waste. Additionally, Choco supports local sourcing, enabling businesses to connect with nearby suppliers & promote sustainable, community-based practices.
Expanding Reach & Impact
Since its founding in 2018, Choco has experienced rapid growth and expansion. The startup has successfully secured significant funding rounds, allowing it to scale its operations and establish a strong presence across Europe and other global markets. Today, Choco’s platform is used by thousands of restaurants and suppliers, revolutionizing the way they operate.
Choco’s impact extends beyond operational efficiency or sustainability. By connecting restaurants, suppliers & producers on a single platform, Choco fosters collaboration & encourages the exchange of ideas. This collaborative approach strengthens the overall foodtech ecosystem and creates a supportive community of like-minded aiming to drive positive change within the industry.
Future Of FoodTech
Choco’s rise to prominence in the foodtech industry exemplifies the reach of sustainability, innovation, and community. Through its user-friendly platform, Choco simplifies supply chain management, streamlines operations for restaurants & suppliers, and actively promotes sustainable practices. By harnessing the potential of digital, Choco is disrupting the future of the food industry, making it more efficient and transparent.
As Choco continues to expand its impact and reach, its transformative influence on the foodtech sector is set to inspiring, grow other startups, and established players to embrace technology for a better and more sustainable food system.
We Can’t Thank You Enough For Your Support!
— Compiled by Clint Bailey | Team ‘Voice of EU’
— For More Info. & News Submissions: info@VoiceOfEU.com
— For Anonymous News Submissions: press@VoiceOfEU.com
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The Implications Of Controlling High-Level Artificial Super Intelligence (ASI)
Artificial Super Intelligence (ASI)
By Clint Bailey | ‘Voice of EU’
The notion of artificial intelligence surpassing humanity has long been a topic of discussion, and recent advancements in programs have reignited concerns. But can we truly control super-intelligence? A closer examination by scientists reveals that the answer is highly unlikely.
Unraveling The Challenge:
Controlling a super-intelligence that surpasses human comprehension necessitates the ability to simulate and analyze its behavior. However, if we are unable to comprehend it, creating such a simulation becomes an impossible task. This lack of understanding hinders our ability to establish rules, such as “cause no harm to humans,” as we cannot anticipate the scenarios that an AI might generate.
The Complexity Of Super-Intelligence:
Super-intelligence presents a distinct challenge compared to conventional robot ethics. Its multifaceted nature allows it to mobilize diverse resources, potentially pursuing objectives that are incomprehensible and uncontrollable to humans. This fundamental disparity further complicates the task of governing and setting limits on super-intelligent systems.
Drawing Insights From The Halting Problem:
Alan Turing’s halting problem, introduced in 1936, provides insights into the limitations of predicting program outcomes. While we can determine halting behavior for specific programs, there is no universal method capable of evaluating every potential program ever written. In the realm of artificial super-intelligence, which could theoretically store all possible computer programs in its memory simultaneously, the challenge of containment intensifies.
The Uncontainable Dilemma:
When attempting to prevent super-intelligence from causing harm, the unpredictability of outcomes poses a significant challenge. Determining whether a program will reach a conclusion or continue indefinitely becomes mathematically impossible for all scenarios. This renders traditional containment algorithms unusable and raises concerns about the reliability of teaching AI ethics to prevent catastrophic consequences.
The Limitation Conundrum:
An alternative approach suggested by some is to limit the capabilities of super-intelligence, such as restricting its access to certain parts of the internet or networks. However, this raises questions about the purpose of creating super-intelligence if its potential is artificially curtailed. The argument arises: if we do not intend to use it to tackle challenges beyond human capabilities, why create it in the first place?
READ: ALL ABOUT ARTIFICIAL INTELLIGENCE
Urgent Reflection – The Direction Of Artificial Intelligence:
As we push forward with artificial intelligence, we must confront the possibility of a super-intelligence beyond our control. Its incomprehensibility makes it difficult to discern its arrival, emphasizing the need for critical introspection regarding the path we are treading. Prominent figures in the tech industry, such as Elon Musk and Steve Wozniak, have even called for a pause in AI experiments to evaluate safety and potential risks to society.
The potential consequences of controlling high-level artificial super-intelligence are far-reaching and demand meticulous consideration. As we strive for progress, we must strike a balance between pushing the boundaries of technology and ensuring responsible development. Only through thorough exploration and understanding can we ensure that AI systems benefit humanity while effectively managing their risks.
We Can’t Thank You Enough For Your Support!
— By Clint Bailey, Team ‘THE VOICE OF EU‘
— For Information: Info@VoiceOfEU.com
— For Anonymous News Submissions: Press@VoiceOfEU.com
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