The best books on cryptocurrency

I love it because it describes exactly how Wall Street used to work in the bad old days of the early 1900s, before the Great Crash and the Great Depression, before sweeping reforms turned it into what is today. I learned so much from this story about the characters who dominated the Street and set it up for failure.

I see all sorts of parallels with the growth of cryptocurrencies and the scams that surround that industry. I love the way Sinclair describes the Wild West, the ferociously greedy mentality of the players back then, and how he details the machinations of Ponzi schemers and fraudsters before there were any laws barring such scoundrels from doing whatever they pleased with gullible investors’ money.

Extraordinary Popular Delusions is a catalogue of financial bubbles.

I often say it’s the best book ever written about bitcoin, and it was published in 1841. Extraordinary Popular Delusions is why you’ve heard about the Dutch Tulip-Mania of the seventeenth century. He also goes into John Law’s Mississippi Scheme.

The 1848 edition adds a note on the then-current Railway Mania, every bit as bubbly as crypto or the dot-com era.

I first heard about this book on one of my favorite podcasts: Hard Fork. The author is a famous crypto investor at perhaps the world’s leading technology venture capital firm: a16z. The author got a hard time from the hosts, who are both pretty skeptical of crypto. But he handled it so well I knew I had to read the book.

Read Write Own is persuasive in cautioning against dismissing the entire crypto sector due to early failures. The examples used are great: like the Helium project—a kind of crowdsourced “people’s 5G network” that uses cryptocurrency payments as incentives. If you want to hear the “glass is half full” case for crypto, this is a must read.

The Cryptopians covers basically the same ground as The Infinite Machine, but in much, much more detail. 

Shin very much sets out to dig the skeletons out of the closet from the earliest days of the Ethereum adventure. 

The thing you have to understand about how Ethereum started is this: A 19-year-old gawky immigrant kid who was completely conflict averse came up with the vision. A bunch of moderately rich guys and hacker types heard his ideas and saw money start to burst out of their eyeballs. They all moved into a house together and tried to build it and a lot of personal rivalries and drama ensued. 

Then there were a couple of gigantic early screw-ups that nearly sank the whole thing. 

Shin goes through it all blow by blow. There are a lot of “he said/she said” sort of moments in the book.

One of the wildest things… show more.

For Attack, I knew I had to explain the libertarian origins of bitcoin, and Golumbia’s book supplied my reference list for chapter 2. I recommend this book to anyone who wants to understand why bitcoin.

The political currents that went into bitcoin include several strains that are now accepted as the normal Silicon Valley political position—the “Californian ideology.” Bitcoin shares an ancestry with Silicon Valley startup culture, internet free speech movements, the right wing of transhumanism, and the neoreactionary political movement.

It’s a short book, but it does its homework thoroughly. Cryptocurrency still follows the bitcoin political template in 2023.

Davies’ Lying For Money lays out a taxonomy of fraud, illustrated with amazing stories of real-life frauds.

Per Davies: “A long firm makes you question whether you can trust anyone. A counterfeit makes you question the evidence of your eyes. A control fraud makes you question your trust in the institutions of society and a market crime makes you question society itself.”

Davies’ key trick to spotting a fraud: look at something that’s growing unusually quickly, and examine it in some way it hasn’t been examined before.

Only the second chapter is about cryptocurrency specifically, but understanding how frauds think is fabulously useful in understanding how crypto works. Not even crypto’s frauds are new.

Davies used different stories in the UK and US editions of the book – so get both.

Being in the crypto space for as long as I have, I’ve heard the argument repeatedly that tokenization is a new thing that blockchains enable and that they are inherently good or bad, depending on where you stand on the issue. But that is an oversimplification.

Rachel O'Dwyer's book is an approachable exploration of the evolving landscape of tokens beyond the usual critique of financialization. Through a first-person exploration of history, O'Dwyer reveals the deeply political nature of tokens, shedding light on their enduring presence and demonstrating how today's digital tokens are simply a continuation of humanity's longstanding use of tokens to facilitate a wide range of social processes since antiquity.

When I first entered the crypto space, I found that one of the biggest issues was the dominance of free market fundamentalist ideology even when trying to learn about things completely technical. I desperately searched for writing that aligned more with my political leanings, and this book was the first one I found.

In the book, Mark argues that the significance of cryptocurrencies goes well beyond cryptoanarchism. In so far as they allow us "to appropriate, collectively, the means of monetary production," to paraphrase Marx, and to replace "the government of persons by the administration of things," as Engels advocated, they form the basis for a political regime that begins to look like a communism which has, at last, come to fruition–a cryptocommunism. 

Well, the author is a friend of mine but it’s also on a topic close to my own academic research interests. So it was kind of compulsory reading for me, but it might be the most enjoyable compulsory reading I’ve ever done.

I thought NFTs were just a gimmick to do with internet pictures. But the authors explain, with great examples, that NFTs are best thought of as a new technology for creating digital assets. And better still, providing the true owner with irrefutable proof of ownership of these digital assets.

What I took away was that NFTs are a new technology for tracking property rights. And since property rights have been fundamental to economic development for millennia, this is a topic one can’t afford not to understand.

The Basilisk Murders is a mystery centred on the Bay Area “transhumanist” subculture—another offshoot of the Californian Ideology that gave rise to bitcoin, and with much of the same style of grandiose bad thinking, ill-directed idealism, and an undercurrent of fraud.

The characters are also into their bitcoins. It’s a rollicking read, and you don’t have to know anything about these people beforehand to learn and understand why they do what they do.