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Opposed to other government inflated bubbles, why is this bad?
by newsclues 2y ago
Opposed to other government inflated bubbles, why is this bad?
- ADeerAppeared 2y agoLook at Albania for why this is bad: https://en.wikipedia.org/wiki/Pyramid_schemes_in_Albania https://en.wikipedia.org/wiki/Pyramid_schemes_in_Albania Crypto is different from things like housing (where the "bubble" is merely artificially restricted supply driving the price up, so it's a real price increase) or the stock market (Where the fundamentals are real enough that a crash in e.g. AI-stocks will hurt, but not be systemically-destructive. Nvidia, microsoft, etc are all still going to exist as very profitable companies)
- tim333 2y agoBubbles bursting can reduce spending and cause recessions. See the 2006-2008 housing bubble and aftermath for example. Crypto bubbles aren't as bad as housing bubbles because everyone treats crypto as a kind of gambling but many rely on their property investments.