https://www.news.com.au/finance/mark...e3a80ecf9640a3

crypto currencies are falling in value, a serious problem for some investors. the crypto currency bubble has been like many bubblies in the past, the pepper bubble, the tulip bubble, the dotcom bubble, need I say more. China injected a little reality lately by taking down the miners. It actually costs more in electricity than the coin is worth and the activity could only be sustained illegally.

What goes up must come down, thankfully I wasn't on the leading edge of this one

We need to go back to tulips . I suspect there will be some bargain hunters who will take the opportunity to buy "cheap" .I am not an investor in cryptocurrency . But I am bullish on the technology that makes them possible . They do have staying power because the investors just don’t trust traditional investment options and especially investment institutions. (aka the US government )

Cryptocurrencies are not backed by real assets . You know what else is becoming crypto currency ? The US dollar was once backed by gold . Then it was backed by the "full faith and credit " of the United States . Where is that value at these days ? .And despite clear evidence of inflation ,the Fed continues to keep interest rates low . That would be the same Fed that was run by Yellen ;now Treasury Sec. who wants a global tax system.

Nations around the world are toying with introducing their own version of cryptocurrency. I guess they love the idea of floating instruments that have no tangible value ,that people will invest in anyway. They can keep those virtual printing presses going non-stop .

I thought capitalists and money launderers loved un/low regulated banking systems.

it is the regulated systems that make cryptocurrencies a viable option . AS a capitalist I understand that a currency is reliable if it can be counted on to maintain its relative value over time. As you see with the cryptocurrency volatility ,that is not the case yet .

The regulated US fiat currency ,with it's monopoly money printing presses is quickly moving into that area too . Scarcity is one of the key aspects that add value to currency.The US is flooding the world with cheap dollars . Bitcoins used to be capped . But the popularity of cryptocurrency means more of them are on the market .

My point being that nation states/individuals have already figured out how to loot and abuse monetary laws and policies going back centuries and have evolved well beyond regulatory entities. It's a game they have and it's rigged. We both know that enough money buys legislative advantages ordinary people have no clue about that keeps it "LEGIT" on paper at least.

yes we know politicians get rich just by being there

Your point was that as a capitalist I should celebrate the cryptocurrency market because it is "unregulated " . The rent-seeking banking institution will eventually force legislation so they can get competitive advantage over the small guy wearing pajamas in momma's basement investor.

Quote:

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Originally Posted by tomder55

Your point was that as a capitalist I should celebrate the cryptocurrency market because it is "unregulated " . The rent-seeking banking institution will eventually force legislation so they can get competitive advantage over the small guy wearing pajamas in momma's basement investor.

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I have news for you Tom "the small guy wearing pajamas in momma's basement investor" doesn't exist. He might exist in some university dorm but then he would soon be out of there, just like Gates got out of the garage.

They exist in online sites like Reddit .

Quote:

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Originally Posted by tomder55

Your point was that as a capitalist I should celebrate the cryptocurrency market because it is "unregulated " . The rent-seeking banking institution will eventually force legislation so they can get competitive advantage over the small guy wearing pajamas in momma's basement investor.

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You mean destroy the competition? That's a rather old capitalist principle too, but thanks for making my point...

https://www.news.com.au/technology/o...fd421b03bc2c7c

A new form of robbery in a new form of robbery, the Robin Hoods proved to be just hoods