When will all crypto collapse?
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I think crypto is based on a false premise that just because something is in artificial limited quantity it should have value. Or just because something is created it should have value. None of this value even pretends to be based on discounted cashflows.
No, it did not. But I said nothing about the dot com bubble. I don't think that's the same kind of event as the examples of systemic failure that I cited. The dot com bubble did not cause the failure of large financial institutions.
No, the internet did not disappear when the bubble burst. The internet is not an asset that people are buying and selling. Subprime mortgages, on the other hand, actually are assets. For the borrower, of course, a mortgage is a liability. But for the lender, it is an asset, and those assets were overvalued on their books. Of course there is more to the story, but that was a major part of what caused the meltdown in 2008.
And no, mortgages did not disappear. But it suddenly became a lot harder to get a subprime mortgage, and the meltdown brought a lot of new regulation.
Something very similar happened with FTX. FTX and Alameda had assets on their books with extremely exaggerated values. When that information leaked, it caused on run on deposits.
U.S. dollar is only an asset as long as the fed gumbint can collecting tax revenues/juggling the books but as we know all gubmints come to an end eventually.
Yes, part of that was due to the non-separated relation between the two. With both price-fixing, front-running, fraud, and UNLIMITED MARGIN.
Quite an explosive powder-keg waiting to go off... It works until it doesn't. Just like the guy who shorts far OOTM puts for pennies on expiration day... that works every time but ONCE.
ask yourself this : will man's desire to be free from ternary and oppressive authoritarian rule ever be extinguished. not by every breath in me will i submit to be a slave to a pack of politicians who think they are safe in their little bubble.
so as long as man desires to be truly free there will be some form of crypto for the valiant.
so as long as man desires to be truly free there will be some form of crypto for the valiant.
It's ironic that part of the appeal of crypto is for anti-government freedom over one's money.. yet the lack of regulation led to a massive influx of dishonest people running mining bucket shops that ripped everyone off.
Crypto is dead until protective regulation is in place, which kind of defeats some of the spirit behind crypto. Big picture it was interesting to follow, but I'll never buy it.
I will short it with BITI though.
Crypto is dead until protective regulation is in place, which kind of defeats some of the spirit behind crypto. Big picture it was interesting to follow, but I'll never buy it.
I will short it with BITI though.