ROCKDALE, Texas — Ben McKenzie was once riding his father’s silver Subaru via Texas farmland, speaking in breathless bursts about cash: who has it, who wishes it, what makes it genuine or faux. He detailed the perils of cryptocurrency exchanges, the net agents that promote Bitcoin and Ether to speculators, then delivered a sparkling endorsement of “Capital within the Twenty-First Century,” a 700-page ebook via the economist Thomas Piketty about source of revenue inequality and the facility of rich capitalists.
“If they are able to earn a living on it, they’ll do it,” Mr. McKenzie, 43, stated as he sped previous farm animals farms and run-down fuel stations one morning in March.
Mr. McKenzie was once on his approach to Whinstone U.S., a crypto mining operation about an hour out of doors Austin, the place rows of energy-guzzling machines generate new Bitcoins. Over the past six months, as A-list celebrities have shilled for virtual currencies and NFTs, Mr. McKenzie, a TV actor best possible recognized for his starring function in “The O.C.,” has turn out to be an outspoken skeptic. He’s written severely in regards to the #advert for little-known cash that Kim Kardashian posted on Instagram and earnestly requested Reese Witherspoon to forestall proselytizing in regards to the metaverse, all whilst acknowledging that he’s no longer a monetary skilled.
“I’m only a former teenager idol status right here (on my own?) asking other people to believe drawback chance and the opportunity of fraud,” he tweeted in February.
Mr. McKenzie rose to prominence within the early 2000s enjoying Ryan Atwood, a brooding, musclebound youngster from the improper aspect of the tracks who strikes in with a rich circle of relatives in Newport Seashore, Calif. After “The O.C.” wrapped, he went directly to big name in two different TV dramas, “Southland” and “Gotham,” either one of which ran for 5 seasons.
However appearing paintings dried up throughout the pandemic, and prefer many of us, Mr. McKenzie quickly discovered himself sucked down a crypto rabbit hollow. After a few pals inspired him to speculate, he took a 24-part on-line route on cryptocurrencies taught via Gary Gensler, the chairman of the Securities and Alternate Fee (or simply “Gary,” as Mr. McKenzie fondly calls him; they’ve by no means met).
The crypto marketplace appeared tailored for fraud, Mr. McKenzie stated. He was once satisfied the skyrocketing valuations of in style cash had been fueled via reckless hypothesis, relatively than any sensible software of the generation. “It doesn’t do what currencies do,” he stated. “It’s no longer a competent retailer of worth, unit of account or medium of trade.”
In August, Mr. McKenzie despatched a Twitter DM to Jacob Silverman, a tech author for The New Republic who had not too long ago printed an essay titled “Even Donald Trump Is aware of Bitcoin Is a Rip-off.” “I’d love to select your mind,” the actor wrote. “Be happy to omit this if it’s all too bizarre.”
Mr. Silverman, an “O.C.” viewer, was once intrigued. He and Mr. McKenzie each reside in Brooklyn, they usually met for beer and burgers at Henry Public. Mr. McKenzie proposed a ebook venture; Mr. Silverman agreed at the spot. “I began additionally to grasp Ben’s sense of shock at what he noticed and on a regular basis other people doubtlessly getting fleeced,” Mr. Silverman stated. Abrams Press is making plans to put up their ebook, “Simple Cash,” in 2023.
Mr. McKenzie stated his newfound hobby has left pals “supportive however at a loss for words,” whilst his spouse, the previous “Gotham” big name Morena Baccarin, is “simply uninterested in me speaking about it.” Mr. McKenzie has a bachelor’s level in economics from the College of Virginia, and over time he has on occasion chatted in regards to the intersection of regulation and finance along with his father, Pete Schenkkan, a regulatory attorney in Austin. Nonetheless, Mr. Schenkkan stated, he was once “astonished” to be told of his son’s crypto fixation. “It was once a bounce sideways from the remainder of his existence.”
The venture could also be a deviation from what number of celebrities have approached crypto. Matt Damon seemed in a now-infamous business for Crypto.com, a buying and selling platform. Paris Hilton has been hawking NFTs. In an essay for Slate in October, Mr. Silverman and Mr. McKenzie wrote that famous person endorsements are exposing abnormal customers to scams equivalent to “rug pulls,” during which an nameless developer solicits price range from buyers after which disappears with the cash. “The Hollywoodization of crypto,” they wrote, “is an ethical crisis.”
Mr. McKenzie has joined a rising workforce of skeptics and critics referred to as “no-coiners.” In February, he seemed on “Crypto Critics’ Nook,” a podcast hosted via Bennett Tomlin and Cas Piancey, who submit two episodes per week in regards to the dangers of decentralized finance and different crypto ventures.
No-coiners are incessantly the objectives of on-line abuse, even though the trolling can run each tactics. “I’ve picked a large number of fights,” Mr. Tomlin stated. “Frequently I used to be the only seeking to start up conflicts via seeking to indicate to those that ‘Prior to you stated this, now you’re pronouncing this.’”
The no-coiners have one of the most identical idiosyncratic obsessiveness because the crypto bros; like their antagonists, they collect on Discord and Twitter to interchange pointers and memes, they usually’re fluent in acronym-heavy jargon. Mr. McKenzie recognizes that he’s an ordinary addition to their ranks, which consist in large part of newshounds, tool engineers and teachers. “I’m an actor,” he stated. “I don’t know what I’m doing.”
Mr. McKenzie’s background additionally offers him some benefits. Many crypto bros attempt to silence skeptics with the similar mic drop: “Have a laugh staying deficient.” “They don’t use that line a lot with me,” Mr. McKenzie stated. “You wish to have to match real-money financial institution accounts?”
However within the noisy global of crypto, TV repute doesn’t essentially translate to persuade. Prior to atmosphere out for the mine, Mr. McKenzie led a panel at South via Southwest known as “Consider Me I’m Well-known.” The consultation happened in a big auditorium, with many rows of empty seats. A gaggle of younger lovers cheered when Mr. McKenzie offered himself as Ryan from “The O.C.,” then spent the remainder of the development glued to their smartphones whilst he held forth at the risks of unregulated securities buying and selling. (He discovered his 6-year-old daughter, Frances, slumped in her seat on the finish of the panel. “I understand it was once uninteresting,” he advised her. “Are you mad at me?”)
Nor did Mr. McKenzie’s famous person open any doorways at Whinstone, the place he and Mr. Silverman had been hoping to perform a little ebook analysis. When Mr. McKenzie pulled into the car parking zone, a concerned-looking safety guard requested him to spot himself. “I’m an actor,” Mr. McKenzie stated. Had the guard observed “Gotham”? No. What about “The O.C.”? Additionally no. “Ask your daughter about ‘The O.C.,’” Mr. McKenzie responded with a smile. A 2d safety guard stated he had watched “The O.C.” however didn’t acknowledge Mr. McKenzie.
After a couple of extra mins of misunderstanding (one of the vital guards saved regarding the mine’s famous person customer as “Invoice McKlensley”), the safety group despatched Mr. McKenzie, Mr. Silverman and a cameraman who was once documenting their shuttle to fulfill Chad Harris, a former Christmas tree salesman who now manages the Whinstone plant, which was once bought final 12 months via the publicly traded Bitcoin mining corporate Rebellion Blockchain.
A Information to Cryptocurrency
Mr. Harris appeared as at ease in entrance of the digital camera because the actor became critic who’d confirmed as much as spar with him; he stated he’d given 1,000 excursions of the power. When photographers arrive on the mine, he stated, “I do know which approach to flip my shoulder.”
Mr. Harris stated he was once assured he may just move toe to toe with any skeptic; he bragged that he’d not too long ago schooled some crypto haters from Vice Information. “You’ll’t bash one thing should you don’t know the entire info,” he stated. At one level, he boldly predicted that he may just exchange Mr. McKenzie’s thoughts about crypto with a unmarried sentence. He proceeded to talk for a number of mins immediately in regards to the financial advantages of Bitcoin mining.
Mr. Harris led Mr. McKenzie and Mr. Silverman via an unlimited warehouse full of loads of whirring machines. The cameraman captured pictures of Mr. McKenzie in a troublesome hat, nodding sagely whilst Mr. Harris defined the intricacies of the liquid-immersion cooling gadget that assists in keeping the mining machines from getting too scorching. On “The O.C.,” Ryan is a neatly of repressed emotion, hardly betraying a touch of his ideas. Mr. McKenzie, conversely, is a chatterbox: For 2 hours, he grilled Mr. Harris at the calories prices of crypto mining and the sensible application of Bitcoin because the digital camera rolled.
Mr. McKenzie and Mr. Silverman have floated the theory of adapting their still-unwritten ebook into some type of Hollywood manufacturing. They’re modeling the venture on “The Giant Brief,” Michael Lewis’s ebook in regards to the savvy buyers who predicted the 2008 housing marketplace crash. The film adaptation options Margot Robbie ingesting champagne in a bath as she explains the subprime loan disaster.
“Jacob and me in thongs,” Mr. McKenzie stated. “It might almost definitely flip other people away.” Mr. Silverman laughed. “I will be able to move to the health club for one month,” he stated.
If that doesn’t figure out, there’s at all times TV. Mr. McKenzie stated he pitched Josh Schwartz, the “O.C.” writer, on a reboot during which a cryptocurrency billionaire, possibly the son of Luke Ward, whose collection arc strains an evolution from villain to liked himbo, strikes to Newport Seashore and takes regulate of the native genuine property marketplace.
Mr. Schwartz “laughed with politeness,” Mr. McKenzie stated. (In an interview, Mr. Schwartz steered another crypto-themed follow-up involving advanced political machinations masterminded via Luke’s more youthful brothers. He added that Seth Cohen, Ryan’s geeky best possible buddy performed via Adam Brody, would “without a doubt be seeking to promote some NFTs.” Mr. Brody, reached via textual content, stated he agreed. “Or he’d be promoting bongs out of a van,” he stated. “I don’t know.”)
After the excursion, Mr. Harris led Mr. McKenzie and Mr. Silverman to a construction that the mining team of workers name “the White Area” — the web site of the mine’s govt place of work. Status via the door, Mr. McKenzie pressed Mr. Harris on his cryptocurrency commitments. Wasn’t it simply some other type of playing? A high-stakes poker recreation with out a genuine societal worth?
Mr. Harris shrugged. He stated he was once at ease taking monetary dangers. “Take into consideration it in parallel with your individual existence,” he stated. Mr. McKenzie had taken a ruin from appearing and put his recognition at the line to jot down a ebook arguing that the country’s tech elites are selling a glorified Ponzi scheme. “Lifestyles’s a big gamble,” Mr. Harris stated.
For a break up 2d, Mr. McKenzie seemed like Ryan Atwood once more, brooding thoughtfully.
“That’s true,” he stated. “That’s true.”
