Sep 10 — Dr. Joe Craig: Cryptocurrency — history from Bitcoin's origins through the 2024 ETF approvals, plus the crypto-as-money analysis and scam/regulatory landscape

Sep 10, 2026 — Dr. Joe Craig: Cryptocurrency — History, Risks & Realities

Bulletin for September 10, 2026

Featured Speaker: Dr. Joe Craig

UCCS Department of Economics

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OPENING

Skip led the opening prayer honoring the 9/11 anniversary. Guest Dr. Craig led the Pledge of Allegiance.

"If you are trying to shut someone up because you disagree with them, then you are the intellectual midget."

— Charlie Kirk

CLUB BUSINESS

• Lahjavida Field Trip: September 15, 11:00 a.m.–1:00 p.m. Sign-up still open.

• El Paso County Election System Tour: September 29, 2:30 p.m. Sign-up still open.

• "White Christmas" at the Fine Arts Center: Friday, December 18 at 7:00 p.m. Members purchase their own tickets.

• Board Meeting: September 22 at 4:00 p.m. No board meeting in October.

• Ronald McDonald House is rebranding.

• Member update: Don Cloud is doing well after purchasing a fixer-upper. Members are encouraged to reach out.

KEYNOTE: DR. JOE CRAIG — CRYPTOCURRENCY: HISTORY, RISKS & REALITIES

Dr. Joe Craig of the UCCS Economics Department delivered a comprehensive overview of cryptocurrency — from its cryptographic origins to its current standing as one of the most volatile asset classes in modern finance.

Historical Roots

Cryptocurrency's foundations trace to the 1980s and 1990s, when cryptographers and libertarians sought to create digital money outside the control of central banks. David Chaum's DigiCash was an early attempt, but centralized verification limits caused it to fail. Bitcoin emerged in 2008–2009 with Satoshi Nakamoto's white paper. The first block was mined in January 2009 — embedded with a headline about bank bailouts, a pointed commentary on the financial crisis that spawned it.

Blockchain and Mining

Bitcoin's breakthrough was the decentralized public ledger, or blockchain — a distributed record maintained across thousands of nodes, each referencing prior blocks via cryptographic hashes to ensure integrity. Miners solve computational puzzles to add new blocks and earn Bitcoin rewards. Mining has gravitated toward regions with cheap electricity, such as Iceland and Russia. Bitcoin's supply is capped at 21 million coins; block rewards halve roughly every four years (2012, 2016, 2020, 2024), slowing issuance as the cap is approached asymptotically.

Key Milestones

• 2010 — Bitcoin Pizza Day: 10,000 BTC exchanged for two pizzas, illustrating how far the asset's valuation has traveled.

• 2014 — Mt. Gox collapse: One of the first major exchange failures, exposing custody risks.

• 2015 — Ethereum: Introduced smart contracts and opened the door to programmable finance.

• 2017 — ICO boom and bust, followed by a crypto winter in 2018.

• 2020–2021 — DeFi and NFT booms; Tesla and MicroStrategy add Bitcoin to their treasuries. Bitcoin peaks at $69,000 in November 2021.

• 2022 — Terra Luna collapse, Celsius bankruptcy, and the FTX fraud. The market fell by approximately two-thirds.

• 2024 — SEC approval of spot Bitcoin and Ethereum ETFs marks mainstream institutional entry.

• 2025–2026 — New all-time highs driven by institutional and sovereign adoption, followed by declines. The boom-bust cycle, roughly aligned with halving events, continues.

Is Cryptocurrency Money?

Dr. Craig evaluated Bitcoin against money's three core functions:

• Medium of exchange: Partial success — accepted in limited and uneven contexts.

• Unit of account: Weak — prices are still quoted in fiat currency (USD), not Bitcoin.

• Store of value: Poor — extreme volatility undermines its reliability as a way to preserve purchasing power.

Conclusion: Cryptocurrencies do not yet meet the functional criteria of money and are better understood as speculative assets — more akin to art than currency.

Volatility and Returns

Bitcoin's annualized volatility runs roughly 46%, compared to about 17% for the S&P 500. Whale concentration — a small number of holders controlling large portions — amplifies price swings. Long-run returns from Bitcoin's near-zero base have been extraordinary, but one-year drawdowns can reach 29% or more. Dr. Craig's personal preference remains the S&P 500 for its more favorable risk-adjusted profile.

Illicit Use and Regulation

• Illicit crypto activity rose 162% in 2025; funds to sanctioned entities jumped 694%.

• Stablecoins are involved in approximately 84% of illicit crypto transactions.

• AI deepfakes and voice cloning are now used to amplify scams. The dominant "pig butchering" scheme builds trust with victims over weeks, shows fabricated returns, then disappears with their funds.

• Estimated losses from crypto scams: at least $14 billion in 2025.

• The "Genius Act," if passed, would represent the first comprehensive U.S. stablecoin regulatory framework.

Taxes and Security

Cryptocurrency gains are taxable income. The IRS now includes a crypto ownership question on Form 1040. Loss of a private key means permanent, unrecoverable loss of access to funds — strong custody and key management are essential.

Members are invited to attend the U.S. Economic Forum on October 28, featuring sessions on the defense economy, future travel and tourism, and data-driven practice. Contact Dr. Smith for details.

CONCLUSION

Dr. Craig's presentation left everyone more informed — and perhaps more cautious. As the notes aptly conclude:

Question: How do you make a small fortune in cryptocurrency?

Answer: Start with a massive fortune.

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