Hope Springs Ever Eternal: Wildly Proliferating Fake Cybercoins Drive Down Value, Cause Deflation


TOP CRYPTO COINS TO INVEST IN A CRYPTO MARKET CRASH! HOW TO GET RICH WHILE MARKET IS CRASHING! – YouTube: here is a typical scam artist trying desperately to convince fools to ‘invest’ in fake money.

 

Is Bitcoin A Reaction To US Dollar Hegemony? | Zero Hedge asks: the answer is no.  This article is useful in that it does examine how Russia and China, both of whom have their own currencies backed by government fiat and armies and nuclear warheads, etc.  All the crypt currencies are shooting up and down wildly which is a sign of emotional hysteria coupled with wishful thinking and the fools doing this game still tell us, this is how ‘money’ should operate!  That is, very wild swings based on hysteria or wild gambling!  No, no, NO.  This is the opposite.  This clearly shows how fake money is deadly.  Paper money has a severe downside which Germany showed clearly in the 1920’s hyperinflation.  Money based on computer codes have their eternal downside preventing any functionality.

 

Seriously, what sort of insane person would want to live in a world where one’s money shifts hourly in value, going wildly up or sickeningly down?  This is utterly insane, totally dangerous and completely destructive to any economic system.  No one can plan anything if ‘money’ was this crazy system set up by a bunch of naive computer geeks.

 

‘Money’ is tokens in exchange for ‘value’.  If no human can agree for more than one minute on ‘value’ then it causes economic collapse.  This is was illustrated perfectly by the infamous hyperinflation in Germany after WWI.  All business, all employment ceased since no one could determine the ‘value’ of exchanges hourly as the printing presses wildly added zeros to paper money.

 

Zerohedge wonders about all this, blind to the fact that any system using the Bitcoin model is doomed to be wildly out of control at all times.  The writer at ZH tries to explain why crypt fake money exists while ignoring that truth that the ‘money’ he is discussing in this article is ‘normal money’ not crypt money:

 

It is therefore not accidental that countries like Iran and Venezuela, but also Russia and North Korea, have resorted to alternative methods to operate in the global economic space. Washington’s political decision in 2012 to remove Iranian banks from SWIFT immediately set off alarm bells for several countries. The need to escape from the possibility of being excluded from SWIFT became urgent for countries under the threat of Washington. An alternative payment system was thus born in 2015, christened the Cross-Border Interbank Payments System (CIPS), unsurprising founded by China.

 

The Bilderberg gang held their usual secret meetings during the Obama years.  Seeing how their puppet President would do everything they asked unlike Trump, they did all sorts of cute tricks.  Stupidly, they went on an orgy of invasions with the Peace Prize President leading all these utterly illegal operations which are ‘war crimes’.

 

These blew up in our faces and now Russia is ascendant thanks to the Bilderberg invasion failures.  The US continues this and Trump’s attempts at diplomacy with Russia were thwarted by the US media Bilderberg conspirators attacking him and Congress, filled to the gills with corrupt politicians who are owned by major foreign and domestic entities, joined in preventing any basic diplomacy.

 

All the failures coming out of this will be blamed on Trump, of course.

 

Basically a copy of the SWIFT system, it serves the role of being a backup system should the Americans seek to exclude from SWIFT recalcitrant countries. A more radical solution has been sought by Venezuela, with the country creating its own virtual currency. President Maduro has announced the creation of a crypto state currency based on the value of oil and supported by barrels of oil worth over five billion dollars. Venezuela has been forced to take this step because of a scarcity of US dollars in the country brought on by the economic warfare visited on the it by Washington, which has succeeded in driving the country into a deep crisis.

 

Only oil production in Venezuela is collapsing along with the value of his crypt currency attempts.  Duh.  The government there is non functional due to it repeating mistakes made over and over again in the past, that is, socialism with no supporting systems of capitalist investments.

 

The sanctions on Russia, and the influence that Washington exerts with the dollar on the global economic system, has led Moscow and Beijing to a de-dollarization agreement, establishing the yuan gold standard. Russia sells hydrocarbons to China, which pays for them in yuan, then Russia immediately converts the yuan into gold at the Shanghai Gold Exchange, in the process bypassing Washington’s sanctions.

 

HAHAHA.  China does NOT pay Russia in crypt currencies or dollars!  They do this in GOLD.  Some people here sneered at me when I explained that gold has limits, is real, can be weighed and judged and therefore, has been the ultimate ‘value holder’ for all economic systems in the past going back thousands of years.

 

Nothing comes close except for one major thing: the ability to arm and fight as a large force while being led by someone strong and smart.  That is, Alexander the Great sort of humans.  Humans are the real value in the end.  Minus that, you end up looted and dead.  King Midas, who is a mythological figure of ancient Crete, was wiped out by a major volcanic eruption and the Minoan empire collapsed and was utterly and totally destroyed and all the wealth looted, for example.

 

What is happening in the cryptocurrency markets in not only occurring in parallel with the spread of the Internet, smartphones and the increasing ability to operate in the digital world, but is also seen as a safe haven from centralized financial regulators and central banks; in other words, from the dollar and fiat currencies in general.

 

This article admits the crypt money is for crimes.  Dodging taxes is a crime, by the way.  It has zero use, otherwise.  Since it is a criminal operation, it will be eventually outlawed.  That takes time.  China, just by discussing how to do this, has caused insane panic in the crypt community.  Seeing that no one was arrested, they all emerged from their basements to resume their illicit operations but I hope sane people have now been scared off.

 

And here is a hilarious article about all this from Zero Hedge: Cryptocurrencies – Questioning The Value Proposition 

 

2) How limited is the supply of cryptocurrencies?

One of the weakest element of the Bitcoin/cryptocurrency origin mythology is the limited supply. That argument is still used to justify pricing Bitcoin off gold and other stores of value. As if Bitcoin cannot be replicated cheaply and indefinitely. Forks are increasingly popular because it feels like you are getting additional cryptocurrency for free. But some may notice that is an arbitrary supply increase.

 

I am so happy that at least one person at ZH figured out the obvious.  Quite a few didn’t.  Bravo.  All this fake loot is created out of thin air!  Since there are no regulations or controls, anyone can do this and voila: everyone is now doing this.  These are proliferating like crazy now.

 

There are no barriers to entry on the crypto space, other than a good story about the niche that your coin is filling. The number of ICOs tells you that it is easy and cheap. There are big incentives to get in on the ground floor of a cryptocurrency that has even moderate acceptance.

 

And that is the problem: this is classic inflation.  All the ‘new’ fake money scams were cheaper than the bitcoin scam.  Still, if one can make a billion or so pennies, this is still free loot out of thin air…if one can convince a bunch of fools to part with real money, of course.  Thus, the need for ‘get in now’ hysteria behind all the new fake money scams.

 

3) If Bitcoin crashes what happens to other alt-currencies?

The possibility that Bitcoin is superceded by better alt-currencies has important implications for the class. In fact, it likely determines the future pricing structure of these currencies.

 

None of these ‘currencies’ are ‘better.’  They all have the identical fatal flaws and end up a mess.

 

Bitcoin’s price does not have a floor because it does not have a fundamental pricing model like equities and bonds.

 

BINGO!  Duh!!!  HAHAHA.  Good lord, and what is the ‘floor’ here?  Oh, a functional government with citizens who support it!!!

 

If its price starts falling because other products are available and better, there is little to stop it. As a thought experiment, say Bitcoin was trading today at $14k and stayed there for three months. Six months from now it dropped to $14 and stayed there for three months. What would you look at to figure out which was the right price?  The run-up in Bitcoin created a mystique of one-way trading which is being shaken but the pricing requires faith that there will always be demand. This is far from guaranteed given the existence of alternatives with better characteristics.

 

One of the many myths surrounding this scam game is this:

 

The blockchain and other innovations associated with Bitcoin potentially could make transactions quicker, cheaper and less risky. However, this relates to their transactional functionality but is not here or there with respect to their desirability as an asset.

 

We already know it makes transactions much slower, not faster.  The more people gamble with this fake loot, the slower the transactions.  All this loot attracts looters who depend on the system being super slow so no one can see them screwing it up.  Why have an ‘alternative system’ when it is totally unreliable, utterly without any legal system…who do you sue if the fake money has zero value???…yes, what a system to set up!

 

NOT.

 

Lots of crooks dearly want a system where no one is responsible, no one can be hauled to prison, it is running wild on the internet and computers and anonymous people control it and there are zero regulations or inspections, etc.  What joy!  How utterly insane.  Talk about stupid from hell.  It is ridiculously stupid.  And proof is, people still believe in this Tooth Fairy who has no teeth, this Santa Claus who is a crook breaking and entering one’s bank accounts.  How childish.

14 Comments

Filed under .money matters

14 responses to “Hope Springs Ever Eternal: Wildly Proliferating Fake Cybercoins Drive Down Value, Cause Deflation

  1. Lou

    Seriously, what sort of insane person would want to live in a world where one’s money shifts hourly in value //

    Earth to Elaine, the US Dollar has lost how much buying power, since 1900?
    I was at a meeting, a woman said, ‘The house I grew up in 70 years ago was valued at 3000 dollars, now it is 3 million dollars.’

    1000x increase in cost or price or value.

  2. Lou

    Elaine, there is a guy on You tube [Jsnips4] who has been paid to pump.
    One of his interviews with an ICO pair is a joke.

    BUT the comments are telling. CREDIT CARDS TO SOON STOP ALLOWING BITCOIN PURCHASES.
    That may be the end game. No credit card buys, byebye bitcoin.

  3. Lou

    ‘Coin Base is number one app.’

  4. Lou

    Cboe bitcoin futures fell 20 percent, triggering a temporary trading halt, while the price of bitcoin fell below $11,000 for the first time since early December, according to CoinDesk data.

  5. Jim R


    BTC $11,800 last I looked. Not collapsing, not yet.
    The “alt-coins”, pffft, who cares?
    And “futures” have no more to do with BTC than they have to do with the price of cotton, or anything else.

    Like I said, wasn’t Obama great, when he arrested all those “Mortgage Backed Security” crooks back in 2009, and broke up the “too big to fail” banks? Yeah, that was great. Woulda been a shame if he let the banks try to print their way out of it…

    But I have a feeling Elaine is right about this one thing: it’s all going to blow up before too long, and they’ll all blame Trump.

  6. Lou

    it’s all going to blow up before too long, and they’ll all blame Trump.–What will USA look like, then?

  7. A 50% change in an HOUR is different from steady inflation over 100 years.

  8. Lou

    Hinojosa says, My girlfriend banks with a small regional bank in Texas and she tried buying Bitcoin today but got denied. Her bank for some reason doesn’t allow their customers to buy cryptos.
    I unfortunately bank with Wells Fargo and they would freeze my card when I first started buying cryptos. I think the bubble has some time before it settles at a stable price. Thank you for the great content you create!

  9. She should give the bank tellers some cookies in consideration for saving her from being stupid.

  10. LOL

    lol Elaine is still trying to say “Bitcoin is dying”? Told you last year when it was still $1000 that it’d keep going.

    Crypto is more real then Rothschild digital IOU coins in the Bank of International Settlement server, or the Federal Reserve Notes toilet paper.

  11. LOL

    lol Elaine is still trying to say “Bitcoin is dying”? Told you last year when it was still $1000 that it’d keep going.

    Crypto is more real then Rothschild digital IOU coins in the Bank of International Settlement server, or the Federal Reserve Notes toilet paper.

  12. LOLLL

    lol Elaine is still trying to say “Bitcoin is dying”? Told you last year when it was still $1000 that it’d keep going.

    Crypto is more real then Rothschild digital IOU coins in the Bank of International Settlement server, or the Federal Reserve Notes toilet paper.

  13. All stupid fads run along the same rails. This one is not even slightly different from previous scams.

  14. Lou

    This one is not even slightly different from previous scams.–except [maybe] the Bankers are behind it?????

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