Cryptocurrencies crash and take NFT's with them

During a congressional hearing a few days ago, Treasury Secretary Janet Yellen was asked an interesting question by Senator Catherine Cortez Masto.

“Last week Fabio Panetta, one of the European Central Bank’s six Executive Board Members, noted that the crypto currency market is now larger than the subprime mortgage market which triggered the global financial crisis. Nobody knows that better than us in the state of Nevada.

“And he says this $1.3 trillion [crypto] market shows strikingly similar dynamics. There are about 10,000 crypto assets now. So my question Madam Secretary is: one financial risk posed by the crypto currency is the concentration of ownership. Do you see any financial risk because professional investors and high net worth individuals hold almost two-thirds of the Bitcoin supply?”

A lot can happen in a week. Specifically a crypto market collapse.

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A few months ago some fool on the Motley Fool was trying to say that bitcoin was a better hedge against inflation than gold.
On the other side are professionals who scoff.

One of the most respected investors in America, Warren Buffet, summed up Bitcoin like this in May 2018: Bitcoin is “probably rat poison squared.” In January of the same year, Buffet told CNBC in an interview that “In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending.”

Also in 2018, Bill Harris, the former CEO of Intuit and PayPal, wrote a detailed critique of Bitcoin for Vox, under the headline: “Bitcoin is the greatest scam in history.”

Harris elaborates:
“In my opinion, it’s a colossal pump-and-dump scheme, the likes of which the world has never seen. In a pump-and-dump game, promoters ‘pump’ up the price of a security creating a speculative frenzy, then ‘dump’ some of their holdings at artificially high prices. And some cryptocurrencies are pure frauds. Ernst & Young estimates that 10 percent of the money raised for initial coin offerings has been stolen.”

As Lord Overstone put it, “No warning on earth can save people determined to grow suddenly rich.”
It isn't that Bitcoin has lost half of its value. The problem is Stablecoin - a cryptocurrency that is pegged to the US dollar, and thus gives cryptocurrencies legitimacy - has collapsed.

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In July 2019, NYU Professor and economist Nouriel Roubini launched a scathing analysis of Bitcoin. In a Bloomberg interview, Roubini said this:

“Crypto currencies are not even currencies. They’re a joke…The price of Bitcoin has fallen in a week by how much – 30 percent. It goes up 20 percent one day, collapses the next. It is not a means of payment, nobody, not even this blockchain conference, accepts Bitcoin for paying for conference fees cause you can do only five transactions per second with Bitcoin. With the Visa system you can do 25,000 transactions per second…Crypto’s nonsense. It’s a failure. Nobody’s using it for any transactions. It’s trading one sh*tcoin for another sh*tcoin. That’s the entire trading or currency in the space where’s there’s price manipulation, spoofing, wash trading, pump and dumping, frontrunning. It’s just a big criminal scam and nothing else.”

Later in the interview, Roubini added this: “There are millions of degenerate gamblers that are retail suckers, and they’re gonna create something where they can leverage not 10 times, not 50 times, but 100 times. It’s worse than those drug pushers who give you crack cocaine for free to get you addicted and then lead you to be broke….”

There is very little that you can buy with bitcoin. But one thing that you can buy are NFT's.
So what do you think happened to NFTs?

Data released in the last week shown NFT transactions have slowed, and even decreased 92% from this time last year.

It's bad. Real bad.

The floor price—the cheapest available NFT listed on a marketplace—for many of the most valuable NFT projects has fallen by 20% or more in terms of U.S. dollars over the past 24 hours.
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The Liberal Moonbat's picture

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In the Land of the Blind, the one-eyed man is declared insane when he speaks of colors.

To paraphrase Jodie Foster: Human is not something to aspire to, it's something to get away from.

the scam is ending

The broad plunge in the crypto complex, driven by the collapse of the TerraUSD stablecoin, hit major tokens hard. Bitcoin plunged by as much as 10% in the last day to its lowest level since Dec. 2020, while Ethereum dropped as much as 16%.
The carnage showed signs of spreading further Thursday as crypto-related stocks in Asia also cratered. Hong Kong-listed fintech firm BC Technology Group Ltd. closed down 6.7%. Japan’s Monex Group Inc. -- which owns the TradeStation and Coincheck marketplaces -- ended the day down 10%.

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bondibox's picture

A few months ago some fool on the Motley Fool was trying to say that bitcoin was a better hedge against inflation than gold.

There is a fundamental error in the way most people look at bitcoin because most people on the internet have access to the banking system and see bitcoin as an investment. But that's not bitcoin's purpose. Most of the people in the world do not have a checking account. There are places in Africa where the local currency is so volatile that only the wealthy are allowed to hold American dollars - and violating this is a jailable offense. But cell phones are common even in 3rd world nations. Bitcoin offers these people anonymous protection for their assets, even if it does fluctuate wildly, it's more stable than the local currency. That is what will continue to create demand for bitcoin long after the pumps.

UST is a unique "stablecoin" and it's not quite accurate to say it's pegged to the dollar the same way that USDT or TUSD are. It was intended as a fungible pair with LUNA and its fate it closely tied to LUNA.

But yeah, most ICO's are scams, most coins will fail, and NFT's are just this year's digital beanie babies.

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F the F'n D's

@bondibox
but not in the way that most people view them.
They are waaayyy too volatile to be seen as a store of value (i.e. one of the three qualities necessary to be a true currency).
Also, cryptocurrencies have been used primarily as a vehicle for speculation. That is a breeding ground for fraud.

Cryptocurrencies need to have a full, no-bullshit, complete wipeout crash in order to rid itself of all the crooks, speculators, and the army of delusional fans that fall in love with technology.
Only then will cryptocurrencies start fulfilling the niche that they were meant to.

Until that happens, stay away from them.

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