Jimmy Higgins
Contributor
- Joined
- Jan 31, 2001
- Messages
- 44,167
- Basic Beliefs
- Calvinistic Atheist
Inspired from a serious article. And to be clear, my article is also serious.
WALL STREET, NY -- Bitcoin, and crypto in general, is experiencing a substantial and sustained drop in value. Bitcoin itself is down over 67% since it's all-time high while other crypto currencies are suffering likewise drops, with some effectively becoming worthless. Crypto experts, however, are seeing this as an opportunity instead of a dissolution of crypto. Here are some reasons why.
Among many different reasons, loss of face is most definitely an important reason why crypto experts are big on a return to prominence for crypto-currency. After having spent the last several years talking up crypto-currency, it'd be an incredible amount of loss in face if these experts were to see every word they claimed turn out to not only be wrong, but devastatingly wrong and lead to the dissolution of billions of dollars in investments in crypto. Bitcoin alone has lost $2 trillion in value from its peak not even six months ago. Imagine how badly these crypto experts would look, having encouraged people to continue buying into this dubious investment, especially after it started its crash.
Financial positions are another reason for crypto experts to buck the observed trend of panic amongst crypto-currency. Some of these experts are true believers in the concept of crypto-currency. As a result, they have substantial amounts of money involved in crypto. Having bought in relatively early, they might not yet be ruined, but if the crash continues, they stand to lose phenomenal amounts of wealth and would need to get normal jobs. To make matters worse, it isn't merely the value of crypto that is driving losses, as the mere drop in crypto value can then cause a cascade of problems which can cause holding houses for crypto to lose an ability to manage their holdings, meaning people who could technically still sell and not lose money, can't because the holding house is insolvent. So it is obviously in their best interests to make people think that this is a temporary deflation in value, instead of the end of a fad, so to at least allow themselves an ability to sell out before the DeFi their coins are held with, can't help them out.
The last major position would be prison. Some crypto experts are deeply involved with crypto-currency. They have made promises, guarantees, implied certain protections that they are only capable of maintaining while irrational exuberance can buoy crypto. Celsius, one of the larger holders/lenders of crypto-currency announced they would no longer allow withdrawals or transfer among their customers. While they are implying online that this is temporary, it is hard to imagine that they are doing this for any other reason than being insolvent and incapable of actually distributing any money. The DeFi movement attracted investors with their Ponzi scheme level interest rates that were greater than a magnitude higher than institutional banking. And while their terms and conditions might say one thing, lawyers will be lining up to determine what was allowed under the law. Preventing the evaporation of crypto-currency would help push back the lawyers for a while, so crypto-experts with legal standing to go to prison are definitely in a position to push a narrative to encourage crypto-currency's survival.
It is possible that other, less self-survival, reasons exist to explain why crypto-experts feel that this latest crash is an opportunity to buy low to sell high. But the truth is, crypto has failed on just about every aspect it was promised to provide. It has failed as an alternate currency. It has failed at showing deregulated currencies and deregulated currency banks (DeFi) are in any way safe investments and holding places for those investments. It has failed so extraordinarily well that many crypto-currencies don't exist anymore, making it impossible to tell which ones failed for legitimate market reasons verses which failed because they were scams to begin with.
Which means, if there are any experts out there still saying those things for reasons that aren't of self-interest, then they are idiots, and shouldn't be listened to at all.
WALL STREET, NY -- Bitcoin, and crypto in general, is experiencing a substantial and sustained drop in value. Bitcoin itself is down over 67% since it's all-time high while other crypto currencies are suffering likewise drops, with some effectively becoming worthless. Crypto experts, however, are seeing this as an opportunity instead of a dissolution of crypto. Here are some reasons why.
Among many different reasons, loss of face is most definitely an important reason why crypto experts are big on a return to prominence for crypto-currency. After having spent the last several years talking up crypto-currency, it'd be an incredible amount of loss in face if these experts were to see every word they claimed turn out to not only be wrong, but devastatingly wrong and lead to the dissolution of billions of dollars in investments in crypto. Bitcoin alone has lost $2 trillion in value from its peak not even six months ago. Imagine how badly these crypto experts would look, having encouraged people to continue buying into this dubious investment, especially after it started its crash.
Financial positions are another reason for crypto experts to buck the observed trend of panic amongst crypto-currency. Some of these experts are true believers in the concept of crypto-currency. As a result, they have substantial amounts of money involved in crypto. Having bought in relatively early, they might not yet be ruined, but if the crash continues, they stand to lose phenomenal amounts of wealth and would need to get normal jobs. To make matters worse, it isn't merely the value of crypto that is driving losses, as the mere drop in crypto value can then cause a cascade of problems which can cause holding houses for crypto to lose an ability to manage their holdings, meaning people who could technically still sell and not lose money, can't because the holding house is insolvent. So it is obviously in their best interests to make people think that this is a temporary deflation in value, instead of the end of a fad, so to at least allow themselves an ability to sell out before the DeFi their coins are held with, can't help them out.
The last major position would be prison. Some crypto experts are deeply involved with crypto-currency. They have made promises, guarantees, implied certain protections that they are only capable of maintaining while irrational exuberance can buoy crypto. Celsius, one of the larger holders/lenders of crypto-currency announced they would no longer allow withdrawals or transfer among their customers. While they are implying online that this is temporary, it is hard to imagine that they are doing this for any other reason than being insolvent and incapable of actually distributing any money. The DeFi movement attracted investors with their Ponzi scheme level interest rates that were greater than a magnitude higher than institutional banking. And while their terms and conditions might say one thing, lawyers will be lining up to determine what was allowed under the law. Preventing the evaporation of crypto-currency would help push back the lawyers for a while, so crypto-experts with legal standing to go to prison are definitely in a position to push a narrative to encourage crypto-currency's survival.
It is possible that other, less self-survival, reasons exist to explain why crypto-experts feel that this latest crash is an opportunity to buy low to sell high. But the truth is, crypto has failed on just about every aspect it was promised to provide. It has failed as an alternate currency. It has failed at showing deregulated currencies and deregulated currency banks (DeFi) are in any way safe investments and holding places for those investments. It has failed so extraordinarily well that many crypto-currencies don't exist anymore, making it impossible to tell which ones failed for legitimate market reasons verses which failed because they were scams to begin with.
Which means, if there are any experts out there still saying those things for reasons that aren't of self-interest, then they are idiots, and shouldn't be listened to at all.
