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What is the post-FTX future of cryptocurrency? - Cryptocurrencies, experts say, have mainly been a speculative investment, which only worked as long as real dollars were there.
aljazeera ^ | 12/22/22 | Amy Castor

Posted on 12/22/2022 10:58:07 AM PST by catnipman

in its 14-year existence, the cryptocurrency world has failed to generate any significant real-world use case apart from the financing of crime. It has mainly been a speculative investment, which only worked as long as real dollars were entering the system.

Crypto has never known anything but easy money ... There’s a brutal liquidity squeeze going on in global markets, and money is being sucked out of risky asset classes.” Cryptocurrencies have been about as risky as it gets.

But the real promise was that cryptocurrency would always go up in price ... The promise in cryptocurrencies has always been “get rich quick with no effort, no experience, and no risk,”

Most of the influx of actual money into cryptocurrencies dropped off in 2021. The rest stopped in May 2022

One theory among critics was that all cryptocurrency exchanges are broke because they are over-leveraged and full of unsaleable cryptocurrency assets that have no market demand, but are still accounted for at full mark-to-market value – and not at what a seller could actually get for them.

“Those who put their money into cryptocurrency in the last few years have already lost most of their money.

(Excerpt) Read more at aljazeera.com ...


TOPICS: Business/Economy; Crime/Corruption; Culture/Society; News/Current Events
KEYWORDS: crypto
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article pretty much says it all ...
1 posted on 12/22/2022 10:58:07 AM PST by catnipman
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To: catnipman

At least with the tulip bulb mania the losers had something substantive (tulip bulbs). There is literally nothing left when crypto collapses.


2 posted on 12/22/2022 11:02:13 AM PST by chajin ("There is no other name under heaven given among people by which we must be saved." Acts 4:12)
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To: catnipman

There is ONLY ONE MONEY THAT SURVIVES ponzi scheme fiat and crypto - note, including fiat in the same breath as crypto.

That MONEY is PMs - Gold (for wealth) and Silver (for day-to-day currency).

FIAT is going down, including the FED horse it rode in on.

Gold will kill the FED, and Silver will bury it.


3 posted on 12/22/2022 11:02:21 AM PST by C210N (Everything will be okay in the end. If it’s not okay, it’s not the end.)
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To: C210N

There is not enough gold or silver in the world to handle today’s monetary needs. Running out of silver as it is.
The only safe spot is land. That doesn’t work well for city people but I don’t care about them. Maybe they need to move.
Build more roads and tell the Progressives to Fuk off.


4 posted on 12/22/2022 11:15:27 AM PST by rellic
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To: catnipman

One theory among critics was that all cryptocurrency exchanges are broke because they are over-leveraged and full of unsaleable cryptocurrency assets that have no market demand, but are still accounted for at full mark-to-market value – and not at what a seller could actually get for them.


just a theory..........................


5 posted on 12/22/2022 11:17:53 AM PST by PeterPrinciple (Thinking Caps are no longer being issued but there must be a warehouse full of them somewhere.)
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To: C210N

Gold is the money of kings, silver is the money of gentlemen, barter is the money of peasants – but debt is the money of slaves


6 posted on 12/22/2022 11:19:19 AM PST by eyeamok (founded in cynicism, wrapped in sarcasm)
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To: catnipman

The title was written by someone who does not understand that other than the paper it’s printed on, a “real dollar” is also a virtual currency.


7 posted on 12/22/2022 11:22:05 AM PST by SecondAmendment (This just proves my latest theory ... LEFTISTS RUIN EVERYTHING !!!)
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To: rellic

I’ll take limited PM-backed currency over unlimited fiat/crypto.


8 posted on 12/22/2022 11:24:36 AM PST by C210N (Everything will be okay in the end. If it’s not okay, it’s not the end.)
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To: eyeamok

Well said!


9 posted on 12/22/2022 11:25:06 AM PST by C210N (Everything will be okay in the end. If it’s not okay, it’s not the end.)
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To: catnipman

What about the real world use of crypto?

I’ve been in a few retail establishments , where the credit card reader had a symbol indicating it would accept Bitcoin.

I have not seen too many like that but I have seen a few.

Anyway, I’m thinking that Bitcoin and other crypto have not caught on as an alternate currency for every day transactions.

Which comes back to crypto being only a speculative investment.


10 posted on 12/22/2022 11:26:53 AM PST by Dilbert San Diego
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To: All

What next?

Well, I suppose there will be few more similar private pyramid scheme scammers, until the Federal Reserve Digital Fiat 0’biden Bucks crypto comes out, and then probably the UN / WEF Crypto / Global Social Credit scheme will comes out, and all the other schemes outlawed, and implants required.


11 posted on 12/22/2022 11:40:43 AM PST by LegendHasIt
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To: catnipman

Crypto, the entire industry is money laundering fraudulent enterprise... Even if those running the exchanges have “good noble and honest intent” you could not invent a more perfect vehicle to launder money than crypto if you tried.

They all know this, or should know this, and don’t care as long as they get to pad their pockets with the blood money, it’s all good.

Its a fraudulent money laundering scam, every single bit of it.. period.


12 posted on 12/22/2022 11:49:12 AM PST by HamiltonJay
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To: catnipman

not your keys
not your crypto


13 posted on 12/22/2022 11:53:42 AM PST by RockyTx
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To: catnipman

The scammers are worried their gravytrain will be cut off


14 posted on 12/22/2022 12:02:55 PM PST by NWFree (Somebody has to say it 🤪)
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To: catnipman
The relentless truth is that government fiat currency is worthless, unbacked by anything and manipulated by self-interested parties and subject to politicians that are incentivized to debase and weaken the currency and kick the can down the road on solving any fiscal problems.

Has crypto suffered in the prevailing gold rush atmosphere created by its rapid success? Yes. But every time something bad happens, I evaluate whether it is a function of the technology (is it broken or intractably flawed?) or the cultural/regulatory circumstances? Sometimes it's the tech (usually flaws in smart contracts, which are not designed and tested robustly enough). But usually it's some combination of the casino atmosphere, lack of regulation, and customers doing stupid things and letting those they entrust with their money do even more stupid things without accountability.

Those latter things will pass - people are learning, and the very loss of confidence engendered by such frauds and errors are wizening up those who remain. At the end of it all crypto will still be maturing and strengthening and fiat currency will still be hopelessly broken. The problems I mention in the 1st paragraph are in no way being solved, so once crypto matures sufficiently the market will switch to it and they will start dying off.

15 posted on 12/22/2022 12:07:12 PM PST by EnderWiggin1970
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To: chajin

Electric bills?


16 posted on 12/22/2022 12:12:04 PM PST by ConservativeMind (Trump: Befuddling Democrats, Republicans, and the Media for the benefit of the US and all mankind.)
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To: catnipman

Crypto isn’t real money, but neither is the dollar.

Crypto is based on the configuration of electrons. The dollar is based on the “full faith and credit of the U.S. government”. In other words, it’s ain’t worth nuthin neither!


17 posted on 12/22/2022 12:16:55 PM PST by I want the USA back (News media not worth camel spit. My pronouns: Who, What, I Don't Know.)
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To: C210N

“That MONEY is PMs - Gold (for wealth) and Silver (for day-to-day currency).”

i tried paying my taxes in gold ... i tried buying a car wash with gold ... i tried buying groceries with gold ... i tried buying a soda from a vending machine ... i tried paying for a car with gold ... all to no avail ... no attempts worked ... everyone wanted U.S. dollar currency ... conclusion: gold doesn’t work as money ...


18 posted on 12/22/2022 12:32:07 PM PST by catnipman (In a post-covid world, ALL "science" is now political science: stolen elections have consequences)
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To: PeterPrinciple

“just a theory”

more than a theory ... the U.S. attorney determined that leveraged bets that failed was a principle factor that brought down FTX ... and what did they use as collateral and use to fraudulently pump up their claimed worth? why, their self-invented worthless FTT crypto that they wash-traded to near infinity to make it look like it had value ... and when the roosters can home to roost, FTT suddenly fell to its true value, namely zero, and that was all she wrote ...

looking at the other exchanges that went tits up in July, they were all engaged in leverage bets that failed, again “backed” by their own self-invented worthless crypto ...

and why did all of their leveraged bets fail? because they all bet on the long side that crypto would keep going up forever, and when crypto trading ran out of greater fools willing to inject more ACTUAL money into the system, crypto prices fell, and the leveraged bets all failed and so did the exchanges ...


19 posted on 12/22/2022 12:40:11 PM PST by catnipman (In a post-covid world, ALL "science" is now political science: stolen elections have consequences)
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To: eyeamok

“debt is the money of slaves”

hey, this slave managed to buy several houses and cars with mortgages and loans ... loans that have long since been paid back ... AND I still have the houses and cars ...


20 posted on 12/22/2022 12:42:13 PM PST by catnipman (In a post-covid world, ALL "science" is now political science: stolen elections have consequences)
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