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This is a silly take. Bitcoin's value depends on the leverage and wash-trading generated on the exchanges, and on the exchanges to generate a steady supply of
by pirate787 4y ago
This is a silly take. Bitcoin's value depends on the leverage and wash-trading generated on the exchanges, and on the exchanges to generate a steady supply of "greater fools" to buy Bitcoin. Fundamentally, Bitcoin has failed as both a store of value and as a medium of exchange-- the cost to run the mining network is greater than the value created.
No doubt the ponzi schemers will reboot the casino, and Bitcoin in some form will live forever, and ETH proof of stake holds real promise. But FTX signals the next leg down for Bitcoin, likely the collapse of Tether, and a return to 2016 valuations.
Over a million people lost billions of dollars in the FTX collapse/apparent fraud. This is the most important financial story in a generation, nothing "boring" about it!
- taolegal 4y ago> the cost to run the mining network is greater than the value created No evidence is offered about this at all. But even so mining should be a pretty low-margin and relatively risky endeavor. You don't want mining to be profitable. The worst part of fiat is that rent-seekers are chasing after the money spigot and devising ways to profit off how fiat is "mined." It's the Cantillon effect.