Nov 2, 2018 · 36m · a16z
3 Common Myths People Have About Crypto
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In this presentation delivered at a debate event in Mexico City, former federal prosecutor Katie Haun systematically debunks three major public misconceptions about cryptocurrency—illicit usage, lack of real-world utility, and restriction to monetary payments—while highlighting blockchain's broader economic and technological potential.
How this conversation actually went
Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. How this is scored →
The host as informed peer 0.0 Guest teaching 2.5 Guest disagreement 2.4 The host pushing back 0.0
speaking balance: gold is the host, purple is the guest (3 minute bins)
Sharpest disagreement ▶ 10:09 Attacking traditional fiat money laundering stats
Haun forcefully pushes back on crypto critics by citing a staggering 99.9% failure rate in traditional bank fiat AML enforcement.
Hardest push from the host ▶ 35:56 Krugman's rebuttal openingPaul Krugman steps onto the stage to offer a direct counter-perspective to Haun's keynote presentation.
Biggest teaching moment ▶ 28:50 Explaining economic necessity of tokens in blockchainHaun corrects the popular executive sentiment of liking blockchain while hating Bitcoin by explaining how tokens supply the vital economic incentives for network operation.
The host holds their own ▶ 34:35 Using Krugman's own Nobel lecture to defend innovationHaun counters economic skeptics by contrasting early-stage tech limitations with end-state potential using a 1994 internet analogy and Krugman's own dare to be silly principle.
the scores for every segment, with the reasoning behind each
| Chapter | Topic | The host as informed peer | Guest teaching | Guest disagreement | The host pushing back | Why |
|---|---|---|---|---|---|---|
| Title Card and Event Disclaimers | 0 | 0 | 1 | 0 | Katie Haun introduces her background as a former federal prosecutor and outlines three major crypto myths she aims to dispel. As this is a solo keynote presentation, host expertise and pushback are scored at 0. | |
| Myth 1: Criminal Early Adopters and Decreasing Darknet Transaction Share | 0 | 2 | 2 | 0 | Haun refutes the idea that crypto is purely criminal by noting criminals are early adopters of all technologies, citing Chainalysis data that darknet bitcoin volume dropped from 30% in 2012 to 1% in 2018. | |
| Myth 1: Blockchain Pseudonymity and Law Enforcement Case Studies | 0 | 3 | 2 | 0 | Haun explains blockchain pseudonymity using case studies from her time as a prosecutor, showing how public ledgers allowed law enforcement to track corrupt federal agents and cybercriminals. | |
| Myth 1: Advanced AI Tracing Tools and Comparing Fiat Money Laundering | 0 | 4 | 3 | 0 | Haun aggressively challenges money laundering critiques by highlighting that 99.9% of fiat money laundering succeeds despite $20 billion spent annually on compliance. | |
| Myth 2: Hyperinflation Economies and Financial Access for the Unbanked | 0 | 3 | 2 | 0 | Haun addresses non-speculative use cases for crypto, pointing to hyperinflation in Venezuela and Argentina as well as Afghan women using Bitcoin to achieve financial autonomy. | |
| Myth 2: Revolutionizing Global Remittances and Eliminating Middlemen Fees | 0 | 3 | 2 | 0 | Haun examines global remittances, detailing how cross-border intermediaries extract average fees of 7.5% to 30% and explaining how crypto platforms like Bitso bypass these costs. | |
| Myth 2: Bitcoin as a Digital Store of Value and the Shift to Digital Assets | 0 | 3 | 2 | 0 | Haun compares Bitcoin to gold across six core store-of-value criteria, highlighting Bitcoin's superior divisibility, portability, and verifiability. | |
| Myth 3: How Blockchain Replaces Centralized Intermediaries Beyond Currency | 0 | 3 | 3 | 0 | Haun addresses Myth 3 by demonstrating how blockchain eliminates third-party intermediaries and explaining why blockchain networks fundamentally require underlying token incentives like Bitcoin. | |
| Cryptonetworks: Empowering Independent Developers to Challenge Tech Giants | 0 | 3 | 3 | 0 | Haun explains how tokenized crypto networks enable independent developers to pool global resources and challenge centralized Tech monopolies like Facebook and Google. | |
| Unlocking Unforeseen Behaviors and Key Global Adoption Statistics | 0 | 3 | 3 | 0 | Haun compares early crypto skepticism to 1994 complaints about slow dial-up internet, encouraging the audience to follow Paul Krugman's Nobel lecture advice to dare to be silly. | |
| Paul Krugman Takes the Stage for a Counter-Perspective Rebuttal | 0 | 1 | 3 | 0 | Paul Krugman takes the stage to present a counter-perspective, complimenting Haun's talk as the best crypto defense he has heard while preparing to challenge her premise. |
Statements from this episode (18)
Haun: The DOJ asked her to prepare a case against Bitcoin
“And I was a federal prosecutor with the United States Department of Justice at that time. And I was asked to prepare a case against Bitcoin.”
Haun: Criminals are often the best beta testers for breakthrough technologies
“The truth is that any technology worth adopting is often first adopted by criminals. It turns out criminals are great beta testers of new products and new technologies.”
Haun: Darknet share of Bitcoin transactions dropped from 30% to 1%
“At its peak in 2012, 30% of bitcoin transaction volume, 30%, was associated with dark net markets. Marketplaces like Silk Road or Alpha Bay. And we typically, of course, associate dark net markets with criminal activity. But by 2018, that number is down to one…”
Haun: Cryptocurrency is one of the worst tools for covering criminal tracks
“If you wanted to cover your tracks and you were a good criminal, Bitcoin or cryptocurrency is one of the last things you should use.”
Haun: Corrupt federal agents wouldn't have been caught without crypto tracing
“Had cryptocurrency not been used in that case, we would have never caught these individuals, and they would have still been working for the government instead of in prison, which is where they are today.”
Haun: Machine learning will make cryptocurrency tracing significantly easier
“I predict that with machine learning, that this is even going to become easier to trace, as machines are going to be able to get smart about who owns what wallets, and make connections that no human possibly could.”
Haun: 99.9% of fiat money laundering succeeds despite $20B compliance spend
“In fact, it's working so fine that 99, this is staggering, I didn't even know this until a couple years ago, 99.9% of money laundering crimes with fiat currency succeed despite the twenty billion dollars annually That financial institutions put toward anti-mon…”
Haun: 10% of LocalBitcoins volume originates in Venezuela
“In fact, localbitcoins.com, a very large exchange, 10% of their volume right now, today, is in Venezuela.”
Haun: Remittance middlemen take 7.5% globally, costing consumers $30 billion annually
“Did you know that in the world, on average, these middlemen take 7.5% for most country pairs? On average. That's on average. And that means that thirty billion dollars a year are what consumers are paying to these middlemen. Banks, MoneyGram, Western Union.”
Haun: Bitso processed 16 million in US-Mexico Bitcoin payments last year
“In fact, the CEO of Bitso, the founder and CEO of Bitso here in Mexico, told me that last year, in Bitcoin payments alone, not all cryptocurrency, just Bitcoin, He processed sixteen million Bitcoin coming between the US and Mexico.”
Haun: Traditional cross-border remittances will become as obsolete as telegrams
“Now, this is early days, but I predict that one day Sending a cross-border payment is going to be like the equivalent, or an international remittance is going to be like the equivalent of going to Western Union to send a telegram instead of sending an email fr…”
Haun: Germany took four years to repatriate $30 billion in physical gold
“Germany tried to repatriate last year, or did repatriate last year. 50,000 gold bars worth thirty billion dollars. Weighed 700 tons. Know how much that cost to ship? It also took four years.”
Haun: Blockchains cannot function without cryptocurrency economic incentives
“Blockchain doesn't work without Bitcoin, because you need an economic incentive to keep that network running and those services up.”
Haun: Centralized tech giants stifle innovation by blocking independent developers
“The other problem with having the giants is that they actually stifle innovation for the reason I just mentioned. You have a lot of talented, independent, third-party developers out there who want to build products that might make everyone better off. It would…”
Haun: Token incentives will allow cryptonetworks to challenge tech giants
“Some of these groups could potentially start to take on some of the big, huge giants if they build better products and services. And users would be incentivized because of the tokens. Developers would be incentivized because of the tokens.”
Haun: 84% of major companies are incorporating blockchain technology
“42% of the world's top 50 universities now offer at least one cryptocurrency class, and 84% of major companies are incorporating blockchain technology.”