February 21, 2022
Like "real" money, crypto is backed by nothing but what people think it is worth. It's a psychological disorder. Just because people believe in something doesn't make it real. As Phillip K. Dick said, reality is that thing which, when you stop believing in it, won't go away. Sadly crypto will go away when people stop believing in it. But then so will modern money, which is also not backed by anything of intrinsic value. We are playing at monetary necromancy either way. It will not end well.
This from Carl R. Franklin:
Energy Waste
I believe the fundamental problem with crypto/NFT is it allows anyone to create money out of thin air; therefore far too many will try, wasting incredible amounts of electricity.
The crypto space is spiraling out of control. Governments and central banks must step in before it is too late to prevent hyper inflation and massive wealth transfer, and world wide financial collapse. The threat is not immediate but real, and within a couple years, if nothing were done.
The crypto enthusiasts claimed their system was stable because there are only 21 million coins of the Bitcoin brand that will ever exist so only so much money can be created out of thin air, therefore can’t become inflationary. So they claimed they needed no control. This claim was essential because they have no control - crypto is a massively distributed program that no one controls.
But they ignored the fact that the values of those coins has no upper limit, so you can create an unlimited amount of money out of thin air.
Also, they didn’t initially realize someone would realize they could create Bitcoin look-a likes. So now there can be an infinite number of competing crypto currency brands allowing additional infinite sums of money created out of thin air.
Then they didn’t realize someone would come up with the concept of NFT’s that in turn can create infinite sums of money out of thin air.
First it was NFT’s duplicating the value of real world assets. These NFT’s valued assets at twice their value because they are owned in the real world; then sold again in the virtual world, providing the real world owner with a 100% profit on an asset they never legally give up. People snatched these up without question, not realizing they have no legal claim to the real world asset.
Since NFT creators got away with this ruse, they decided to sell virtual assets at higher prices than their real world counterparts "because the virtual counterpart was specialâ€. And people snapped them up.
So now the NFT creators decided these people would buy anything in the virtual space, even if there was no real world counterpart. So they created NFT’s based only on virtual assets, and they snapped them up.
Because they got away with this ruse, the NFT creators decided they could create old school computer games with coin rewards but within a virtual world NFT format where everything can be purchased as a NFT.
So each step away from Bitcoin has resulted in an exponential jump in the amount of money created out of thin air.
Bitcoin was insanity. All the other coins was insanity squared. NFT’s based on real assets at fair value was insanity cubed. NFT’s based on real assets at inflated value was insanity to fourth power. NFT’s based on imaginary assets was insanity to fifth power. NFT’s based on gamification was insanity to sixth power.
Central banks must outlaw crypto and NFT’s before they create worldwide hyper-inflation
There are several ways they can shut it down. One way is to force the
mining electric costs onto the exchanges, rather than society, which
would make the fees of using crypto far too high ($575/
"I did not come here to tell you how this ends, but how it begins.†The Matrix
There is one subtle difference between crypto and fiat that is of
utmost importance. Fiat represents a fractional share of each countries
GDP. The FOREX markets punish fiat if their central bank abuses its
power keeping our fiat legitimate to some degree. But with crypto,
there is no GDP, there is no economy backing it up, there is no
country, there is no intrinsic value. So crypto truly is backed by
nothing. Whereas fiat has backing by the underlying economy due to the
FOREX markets. Most people don’t realize this critical difference.
Posted by: Timothy Birdnow at
01:20 PM
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smm bear
It is truly a well-researched content and excellent wording.
Posted by: SMM bear at February 22, 2022 12:41 AM (wH+Uj)
I believe the fundamental problem with crypto/NFT is it allows anyone to create money out of thin air; therefore far too many will try, wasting incredible amounts of electricity.
Posted by: mywatchesuk at August 31, 2023 09:09 PM (SUYyh)
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