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One look at the Bitcoin and Cryptocurrency subs on Reddit and it is clear, many of the people still putting in money regularly in the crypto ponzi are the ones
by yashg 3y ago
One look at the Bitcoin and Cryptocurrency subs on Reddit and it is clear, many of the people still putting in money regularly in the crypto ponzi are the ones who can least afford to lose it.
- pazimzadeh 3y agoThat's not what liquidity means though. You could say that about /r/wallstreetbets too
- mjburgess 3y agoWell indeed, crypto fanatics are stock touts for penny stocks. The biggest liquidity scam here is tether -- that's where you accept one real dollar from a pigeon and turn it into 100s by creating a row in an excel spreadsheet called lol-wewillallbeinjail-soon.xlsx That's the big real money pump into the system. Hopefully when tether fails, we can see past these manipulated numbers. ie., when people realise the 200bn+ they thought was there was 20bn, we may be able to estimate the actual amount of money being put in.
- yashg 3y agoCasino chips. Actually worse than casino chips because at the end of the day you can't even redeem them for real money and go home. The game is simple - create magic tokens, create "stable" magic chips. Wash trade tokens with magic chips, pump the price to moon. Lure naive idiots and unload magic tokens for real money. Laugh all the way to the bank while telling suckers to keep holding till eternity.
- pazimzadeh 3y agoAnd just like casinos, you don't have to participate.. It seems to me that main difference between crypto and stocks is that crypto is on 24/7 and doesn't have built-in breaks when the market drops by 10%.
- karmakurtisaani 3y agoThere's also the small thing that stocks correspond to a fraction of an actual company and cryptos just some silly bytes.
- bb88 3y agoWe do have to live with the consequences though: increased energy prices and greenhouse gases through cryptomining.
- pazimzadeh 3y agoThat depends on if proof of steak pans out, no?
- trogdor 3y agoSounds yummy.
- yashg 3y agoWe wouldn't care a fig's leaf if it wasn't for the huge carbon footprint of the POW ponzis. If it was just a bunch of gamblers scamming each other over make believe internet bytes without setting the world on fire, we wouldn't mind. But when your little ponzi wastes energy equivalent to a small industrialized nation, the world has to do something about it.
- pazimzadeh 3y agoOk but BTC + ETH make up ~68% of the total crypto market cap, not these penny stocks. And yes, I realize that market cap means less and less as you go down the list of coins but that's kind of my point. It is a choice to go for the smaller ones (high risk, higher potential reward).