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There is no doubt that it's a pyramid scheme. Everything is a pyramid scheme these days including the entire stock market (especially big tech). But the moder
by cryptica 6y ago
There is no doubt that it's a pyramid scheme.
Everything is a pyramid scheme these days including the entire stock market (especially big tech).
But the modern monetary system is designed to sustain such pyramid schemes. It can keep them going forever. No matter how much net value they destroy; it will offload the costs to fiat salary earners who accept fiat currencies.
TBH I'm confused how the world economy is able to keep running at all with all these extreme inefficiencies everywhere.
- inter_netuser 6y agoSooner or later it will have to end. https://en.wikipedia.org/wiki/Minsky_moment https://en.wikipedia.org/wiki/Minsky_moment
- cryptica 6y agoI don't think so because the entire stock market would collapse if the reserve banks stopped printing money. Smart people look at Bitcoin and Ethereum and think "wow that's inefficient, if the banks raise interest rates, they're going to get wiped out" but they don't realize that most corporations are just as capital inefficient and are in the same position. They are both unprofitable, therefore both worthless... Does it matter that one may be slightly less worthless than the other? The intrinsic market cap (if we had a free market) would be less than 0 in both cases.
- cryptica 6y agoNot sure why this is being downvoted. Before the pandemic, the Fed tried to wipe out the crypto space by raising interest rates... Then when they realized that their policies were threatening to take out the entire stock market instead, they decided to suddenly drop interest rates back to 0. It seems like the Fed was trying to find a sweet spot of interest rates which would wipe out all speculative investments but would allow non-speculative investments to stay afloat... They simply didn't anticipate that stocks might be more speculative than crypto.