Elected members of Congress and the Whitehouse are borderline criminally negligent allowing the adoption of cryptocurrencies to spread throughout our society. Today is a big day in this danger making inroads into our country's economy because one of its major exchanges, Coinbase, is going public on the NASDAQ today -providing legitimization to this threat to our nation! Cryptocurrencies are not only a societal threat they are so harmful to society they are actually evil they equate to slavery, ethnic cleansing and narcotics trafficking, cryptocurrencies have the power to decimate our economy to cause record setting unemployment numbers and ordinary peoples savings and wealth to Depression era levels! Cryptocurrencies values are completely subjective, they have no inherent value, their value is completely based on public sentiment if panic or rejection sets in these virtual currencies could become worthless and if these currencies trajectories in our society stay on their same course they hold today the encompassing destruction of wealth would permeate our society and at minimum would send our country into at least another great recession if not depression! Everything might be all sunny and positive with these cryptocurrencies today but it is only a matter of time before there is a large scale run on these speculative products and when the free fall occurs the end state will be devastation for America! Congress and the President need to get on the job with this issue. Legislation should be passed protecting our economy from this unstable product. Banks that are backed by the FDIC should only be able to hold enough of the cryptocurrencies to conduct business; 401 K plans and pension plans should be banned from investing in cryptocurrencies; the law should make businesses liable to their stockholders for significant drops in the company's share value over hits on these cryptocurrencies values especially when the cryptocurrency falls in value over thirty percent in a three month period and fifty percent over a one year period and the law should allow claw backs on bonuses and stock issuances for top executives when these executives buy more of these cryptocurrencies then is necessary to conduct their businesses and the cryptocurrency price takes a precipitous downturn! The legislation should ban the creation of "any" new cryptocurrencies, a currency is an asset created and backed by a sovereign central bank. This connection of a Central Bank to the asset is critical because it provides price support for the asset, a government allowing assets to enter and permeate their economy that has no price stability quality for it is the height of incompetency of a government! The American people need to recognize that these times are like the mid 1920's and cryptocurrencies are like the government back then allowing people to buy stocks on margin putting as little down as ten percent of the stock value what the American people subsequently learned is that this margin abuse stock buying eventually led to the 1929 Stock Market Crash that threw the world and America into the Great Depression! The Big question for the American people is do they act like a smart people that have foresight and eliminate this cryptocurrency cataclysmic danger before it does its harm by getting their elected officials to contain this danger through legislation restrictions on purchases and ownership of this foolish speculative product!
I see the concerns, but I am opposed to criminalization on cryptocurrencies due to civil liberties grounds, since on some level it would essentially be criminalization of information. Overall though, I think cryptocurrencies are an incredibly stupid idea, and 90% of this is just some stupid trendy fad and speculative pyramid scheme. One "good" thing about cryptocurrencies (shall we say) is that due to their nature of how they work, all transactions are out in the open. That is how everyone knows you hold that currency, because everyone else who holds the currency registers the transfer. So in some ways, it can be hard to hide a payment.
Those who believe in the economic theory of MMT probably view cryptocurrency as a good thing, since they believe adding more "money" is beneficial to the economy. That seems to be the economic mindset of many of those on the Left in the government now. I do agree that all this cryptocurrency stuff could be part of what is fueling a speculative bubble in the economy, and this could lead to a collapse. But it is only one small part of the economic bubble overall.
The technology is in its infancy. It may take a long time to get a working one, but it will happen. It will stop governments from printing their way out of debt.
I predict that if any alternative currency ever started seriously threatening the dominance of the government's money, they would start implementing laws to curtail it back. Government usually doesn't like to lose direct control over the money supply.
The current corrupt debt based Federal Reserve pyramid ponzi scheme is on the verge of collapse....and when it does, the only thing that will save you is crypto...specifically bitcoin
I'm fairly conservative politically and as an investor I stick to stocks, bonds and real estate, no leverage. Crypto certainly has the potential for real damage as its value is based on fairy dust and the fact that the prices of all major cryptos are likely manipulated by so-called "stablecoins" like Tether. Nevertheless I think the window to take action has passed and that a lot of people are going to have to lose all of their money in their little ponzi-pyramid hybrid scheme before there is appetite for regulatory action again. But I think the extent of real damage, at least at this point in time, would be fairly limited. Banks are not putting it on their balance sheets for example, they are just creating crypto funds and "services" to allow themselves to skim fees off rich dumbass clients. It's just failing companies that nobody cares about like Microstrategy that are actually using crypto as a "treasury reserve".
Since crypto currencies have to be "mined" to limit their growth, I don't think MMT folks are interested in them. They want to simply add as many zeros as needed, something that can't be done with cryptocurrencies. That said, I don't even regard cryptocurrencies as currencies. They are more like commodities with fairly rapid swings in value based on market conditions. Unlike regular commodities, they have no use or value outside the internet.
Very interesting comment which made me think a bit. What if every server that holds the algorithms behind crypto were to go dark and backup power ran out, would your purchase be protected some other fashion? I don't think so, there is no central bank guaranteeing the money in crypto. This is a fascinating comment Moonglow.
LMAO... So Biden and this years admin, congress are in Neglect. Yet, no one really cared when Trump was leading ? It is amazing to me just how OUT OF TOUCH Americans are today...Crypto's are corrupt, but the FED and the banksters, Wallstreet are NOT ? They have control and are destroying our economy thru money printing. There is no safe way to save money... i.e. bonds, savings account, etc. You can only get 1% on your money while the real rate of Inflation this year will hit 15% and it has been steady at 6% YoY for the past 30 years. Thus, the FEDS lie... CPI (consumer Price Index) is a farce, a lie, propaganda that I am sure you believe. Yes, the Price of a TV has remained at 1% every year for 20 years. Problem is, the CPI is based off of products that Americans purchase every few years, or longer. Items you want, not what you need. Education, Healthcare, Insurance, Food all up a 100 - 600% over the years. But a TV, yep, 10% They are printing and forcing Americans to Invest in Wallstreet, this pushes the money up the ladder to the very rich. It does nothing for a regular working class person that needs to save and work. Too many retirees (baby boomers) said nothing as BOTH republicans and Democrats deregulated the banking, wallstreet, Biotech, etc. They made it so the rich cant jump thru any hole and come out smelling like roses. While the 99% get hammered in healthcare costs, education, medication, insurance, local taxes and much more. You are speaking from your chair, about your opinion, on your money and not taking into account millions are stuck. We need a way to make money, 15/hr doesnt pay the bills, free money from govt.. .doesnt pay bills, any regular paying job is impossible to find, thus, if rolling the dice, the 20 - 30 year olds will do what they can. What you really fail too see, what millions miss is the compounded inflation numbers for 30 years. If I pay you 1.5% increase, but charge you 6.5% increase ? Do the numbers. It is really that simple
FDIC is a HOAX... It was put there for guys like you to THINK your covered. The insurance actually has 2 - 4% of the money needed to pay off how much they insure. Lets pretend for a minute they insure 15T in bank accounts. Sounds like a reasonable number ? So, they need to hold 15T to pay it all off if system fails, correct ? They dont even have 10% or 1.5T, in fact they hold less than 1 Trillion. Honestly.... How many Americans keep falling for the same old lies.
Very astute. Japan did a very similar thing in the 80s: pump a massive stock and real estate bubble -- the largest in history up to that time -- using artificially low interest rates, money printing, and fraudulent official inflation statistics. Didn't turn out well for anyone but the super-duper uber-rich, and Japan's economy has never recovered. Same is going to go down here. Take it to the bank. Oh, no, wait a minute, one thing will be different: Japan's currency was not widely held outside the country, so there was no collapse in the yen. By contrast, very soon vast quantities of US$ held overseas will be looking for a home, and no one but Americans will want them or have any use for them.
Crypto has its own central bank, except its a shady private company in Hong Kong with about 9 employees called Tether. They claim that their fake currency is backed 1:1 by actual USD, and then they print exponentially larger and larger amounts of tethers and use it to buy bitcoin on unbanked exchanges, pushing the price up. They've never been audited and claim to have a "market cap" of $50 billion USD. Essentially they are claiming that they are a larger company than something like Target or 3M. And nobody in the crypto world sees any problem with this because it's the "currency of the future", so the ponzi continues indefinitely.
It's laughable how cryptocurrencies are portrayed as fairy dust while the stock market is at record highs with an economy in tatters...if anything is fairy dust its the fundamental valuations of stocks in the current market. The other joke is crypto being accused of money laundering....the banking system have laundered more than US$2 trillion, this is the entire market cap of the crypto market and double the market cap of Bitcoin. It is so obvious the central banks running a smear campaign... currently they are attacking crypto harder than ever...the problem with this is when they fail, their failure will propel crypto even more....and they will fail because their own system is crumbling and the ONLY hedge against their crumbling fiat system is bitcoin. It's like asking people to hand over their water bottles when you are running out of water...self preservation is stronger than central banking lies.
