Is crypto currency the largest financial fraud ever?

[PoS]

Crypto has no value. It serves no function.

Its become a medium of exchange for some countries, its an investment that made money for many people, and even America is looking to create its own cryptocurrency.

Countries that accept the use of Cryptocurrency - MWD

Here are some of the countries that accept Cryptocurrency. Most of them are near you. Find out which of them accept Crypto.

miningwatchdog.com

10 Amazing Crypto Success Stories That Will Make You Start Counting Your Own Money - ScoopWhoop

Magic money.

www.scoopwhoop.com

U.S. House Passes Bill To Create First Crypto Task Force On Digital Assets

Republican Leader McHenry spoke on behalf of a bi-partisan "Eliminate Barriers to Innovation Act of 2021" that passed the House of Representatives, saying the current regulations of the CFTC and SEC denote cryptocurrency projects “...fish nor fowl when it comes to this new creation.”

www.forbes.com

 

[Mithros]

Its become a medium of exchange for some countries, its an investment that made money for many people, and even America is looking to create its own cryptocurrency.

Countries that accept the use of Cryptocurrency - MWD

Here are some of the countries that accept Cryptocurrency. Most of them are near you. Find out which of them accept Crypto.

miningwatchdog.com

10 Amazing Crypto Success Stories That Will Make You Start Counting Your Own Money - ScoopWhoop

Magic money.

www.scoopwhoop.com

U.S. House Passes Bill To Create First Crypto Task Force On Digital Assets

Republican Leader McHenry spoke on behalf of a bi-partisan "Eliminate Barriers to Innovation Act of 2021" that passed the House of Representatives, saying the current regulations of the CFTC and SEC denote cryptocurrency projects “...fish nor fowl when it comes to this new creation.”

www.forbes.com

Say you want to buy something with crypto. First you figure out how much that thing costs in dollars. Then you see what the conversion rate for that crypto is in dollars. The medium of exchange is always dollars, not bitcoin.

Paypal is a medium of exchange. Say instead of paying for things with paypal I just stuck money in my account. If I want to pay for something then I just have to wait until wait until someone else put in twice as much. Then I get the extra 50% and paypal gets the other 50%. Ponzi schemes always make money for many people. That doesn't make them legitimate.

 

[PoS]

Say you want to buy something with crypto. First you figure out how much that thing costs in dollars. Then you see what the conversion rate for that crypto is in dollars. The medium of exchange is always dollars, not bitcoin.

Paypal is a medium of exchange. Say instead of paying for things with paypal I just stuck money in my account. If I want to pay for something then I just have to wait until wait until someone else put in twice as much. Then I get the extra 50% and paypal gets the other 50%. Ponzi schemes always make money for many people. That doesn't make them legitimate.

All the links Ive posted proves otherwise. Your opinion is of no consequence whatsoever.

 

[fmw]

Crypto is based off absolutely nothing. It is a complete shell game.

If you can make some quick money, do it.

But don’t risk anything you can’t afford to lose.

I think it is probably fair to say that the U.S. dollar is based on nothing but belief in its value. The dollar has had a huge head start. But I do agree that investing in crypto is as risky as investing gets.

 

[Mr Person]

Another possible crypto scam . . .

The co-founders of failed crypto hedge fund Three Arrows Capital appear to be on the run from creditors, according to court documents recently filed in New York.​

Lawyers representing the creditors say the physical whereabouts of Zhu Su and Kyle Davies, who started Three Arrows in 2012, are “currently unknown,” ahead of a hearing that is scheduled for 9 a.m. ET on Tuesday to discuss next steps in the liquidation process. The documents, filed Friday evening, also allege that the founders have not yet begun to cooperate with the liquidation process “in any meaningful manner.” On Monday, lawyers requested the court keep the identity of the creditors anonymous.​

​

Zhu and Davies did not respond to requests for comment.Three Arrows, also known as 3AC, managed about $10 billion in assets as recently as March. On July 1, the firm filed for Chapter 15 bankruptcy protection from U.S. creditors in the Southern District of New York, after a plunge in cryptocurrencies and the collapse of the terraUSD (UST) stablecoin project wiped out its assets. Prior to the bankruptcy filing, a court in the British Virgin Islands ordered the beleaguered fund to liquidate in order to pay back its debts. . . Teneo’s Russell Crumpler, who was tasked with helping to facilitate the bankruptcy process, said in a sworn statement that there is a “real risk” that 3AC’s assets would disappear “absent immediate authority to pursue discovery.” “That risk is heightened because a substantial portion of the Debtor’s assets are comprised of cash and digital assets, such as cryptocurrencies and non-fungible tokens, that are readily transferrable,” Crumpler said in his statement.​

​

[continues]​

Founders of bankrupt crypto hedge fund 3AC go missing, as investors try to recoup assets

Lawyers representing 3AC's creditors say the physical whereabouts of Zhu Su and Kyle Davies are "currently unknown."

www.cnbc.com

Christ. It's worse than gambling. Go to a casino and nobody's going to be holding you up for your chips. To the extent robberies happen, they're aimed at the dealers' stacks at high stakes tables because duh, of course they are.

Crypto? It seems like every week I see a new story about tens of millions or billions vanishing in one way or another. Maybe a founder dies and nobody knows his password, so poof goes a couple hundred million in crypto. Or maybe hackers steal half the wallets from one of the sites managing them. Maybe the founders make shit investments, go bankrupt, go on the run, and loot the rest. Etc etc etc. Anyone who says that "the blockchain" makes crypto more secure than other currency does not have the same definition of "secure" that I do.

 

[fmw]

Crypto will crash someday. It has to. It's only a matter of when.

Yes, just like the dollar.

 

[fmw]

Is crypto currency the largest financial fraud ever?​

As fiat currencies go, The only crypto currency that matters (Bitcoin) is much smaller than most other fiat currencies. I would say the U.S. dollar is probably the largest financial fraud. It is guaranteed to lose value no matter what happens.

 

[thelastman]

I'm no financial expert, but honestly there's not a significant difference between cryptocurrency and physical money. That's something we could all adjust to.

I'm told it's the underlying blockchain technology that is going to change our lives, because it provides a universally verifiable history of ownership (of anything it is applied to.)

I worked in the financial industry a bit, and I can confirm that all over the world there are offices full of people whose job it is to verify ownership of houses and cars and everything else we've got.

This technology potentially replaces all of them, and any jerk with a cell phone will be able to 100% verify the ownership history of anything in the system.

You should watch this video -

 

[multivita-man]

Crypto: Worthless as ****.

The end.

Binance backs out of FTX rescue, leaving the crypto exchange on the brink of collapse

Binance is backing out of its plans to acquire FTX, the company said Wednesday.

www.cnbc.com

 

[multivita-man]

I posted this in January, lol.

It's easy to see how BTC can become corrupted. Like pretty much all virtual currencies, it takes a few 'whales' to get it going.

Yep.

BTC basically works by getting other suckers to join in with the assumption that it's an "investment."

Yep, lots of suckers bought into this, as I said at the time (as a lot of ppl said, honestly - I'm no genius).

More people join in, the money pot grows, and then when it crests, the bigger players sell, often leaving the noobs holding the bag. Then the price goes down, the whales jump back in, and the cycle continues.

It especially continues when the Fed is pumping liquidity into the market, as it has been since 2009, with a lot of excess liquidity since, oh, 2015.

The big money boys basically control the price. It's not like currency which is regulated and influenced by policy. It's not like stock or commodity prices which are influenced by well-established market forces.

Crypto became an ideology, and that is what killed it. If crypto is to become resurrected - I think it can - it will have to be governed by the laws of economics and science, not Ron Paul libertardian sorcery.

I can absolutely see a reason for the existence of blockchain technology, and perhaps somewhere down the line, there could be an international agreement on what a single virtual currency should be,

Still believe this - in fact now more than ever given the pain the world's reserve currency is causing economies all over the world.

but right now, bitcoin/memecoin/whatevercoin is just the wild, wild West. People are going to get screwed, and crypto's continued creep into mainstream banking should worry all of us. Market crashes are almost always the result of over-speculation about things people don't understand, like real estate in the 1920s, dot coms in the 1990s, and mortgage-backed seurities in the 00s. This is the next big crash in the making, and I wouldn't be surprised if it happens this year.

Yeah, pretty much this.

 

[joluoto]

Crypt is failing hard, but let's nor pretend it did not give us some cringy dank memes.

Never forget the Bitconnect man:

 

[Yes_Minister]

Its become a medium of exchange for some countries, its an investment that made money for many people, and even America is looking to create its own cryptocurrency.

Countries that accept the use of Cryptocurrency - MWD

Here are some of the countries that accept Cryptocurrency. Most of them are near you. Find out which of them accept Crypto.

miningwatchdog.com

10 Amazing Crypto Success Stories That Will Make You Start Counting Your Own Money - ScoopWhoop

Magic money.

www.scoopwhoop.com

U.S. House Passes Bill To Create First Crypto Task Force On Digital Assets

Republican Leader McHenry spoke on behalf of a bi-partisan "Eliminate Barriers to Innovation Act of 2021" that passed the House of Representatives, saying the current regulations of the CFTC and SEC denote cryptocurrency projects “...fish nor fowl when it comes to this new creation.”

www.forbes.com

This aged like milk.

 

[EMNofSeattle]

The almost 30% drop in crypto currency investments over the last month prompted me to do some research and I found this article:

Cryptocurrency Is a Giant Ponzi Scheme

Cryptocurrency is not merely a bad investment or speculative bubble. It’s worse than that: it’s a full-on fraud.

jacobinmag.com

As a former software engineer the discussion of the technology seems accurate but my layman's knowledge of finance does not allow me to judge that aspect of the article though it appears to be dangerous to our financial system. China and India have virtually banned crypto currencies and perhaps for good reason. Can anyone else provide incite.

Like ‘The 1929 Crash’—New Crypto Winter Warning As Sell-Off Wipes $1.5 Trillion From The Combined Bitcoin, Ethereum, Solana, BNB, Cardano And XRP Price

A new "crypto winter" could be around the corner after a huge crypto price crash has wiped $1.5 trillion from the combined cryptocurrency market—hitting bitcoin, ethereum, BNB, solana, cardano and XRP hard...

www.forbes.com

Crypto is crashing—and experts predict more pain ahead

Stalwart coins like Bitcoin have shed over 40% in recent months.

fortune.com

I wouldn’t say cryptocurrency in general is A fraud, I never got involved in it because I don’t trust it as an investment, but being a bad investment does not mean being a fraud.

That doesn’t mean that if I could go back in time I wouldn’t buy a lot of bitcoin in the very early 210s, and cash it all out in 2018.

 

[The Mark]

I don't know details about all the various crypto out there, but if what I once read about Bitcoin is accurate, it's intended to have artificial scarcity due to the difficulty of creating it getting harder the more there is of it.
Of course that difficulty is calculating a number, so people threw massive amounts of computing power at it. Which still has diminishing returns.

Or something like that?

Weirdly enough, it's kinda like many other currencies, in that if people believe it has value, it does.
That perceived value fluctuates a bit more than what we might call "normal" currency, however.

Probably because it's held by fewer hands, and thus a smaller number of hands moving it causes a bigger blip on the graph.

 

[PoS]

This aged like milk.

Aged milk > Canuck maple syrup

 

[Dans La Lune]

What should happen to the Senators who were blocking for Crypto while receiving donation contributions from Crypto? Besides the nothing that will actually happen, because American is the most legally corrupt nation on Earth.

 

[multivita-man]

What should happen to the Senators who were blocking for Crypto while receiving donation contributions from Crypto? Besides the nothing that will actually happen, because American is the most legally corrupt nation on Earth.

They weren't blocking for crypto; they were unwittingly blocking for FTX. Sam Bankman-Fraud actually proposed industry-wide "regulations", but these were regulation that went after rivals by targeting anyone on OFAC's shit list, as well as other regulations that would have made it harder for smaller start-up competitors to compete. His gimmick almost worked except that Binance, which was already effectively blocked out of many major economic markets figured that Bankman-Fraud was just as much of a bullshitter as anyone else in the crypto world and probably didn't have the liquidity to survive a bank run, which Binance's leader basically orchestrated. Binance was obviously right on that call.

Bankman-Fraud conned Congressional Democrats into believing he was a pro-regulatory good actor, and he reinforced that scheme by rambling on about "altruism" and other "feel good" shit that Democrats wanted to hear, and of course, the political campaign cash they were all too anxious to grab.

 

[Mithros]

I don't know details about all the various crypto out there, but if what I once read about Bitcoin is accurate, it's intended to have artificial scarcity due to the difficulty of creating it getting harder the more there is of it.
Of course that difficulty is calculating a number, so people threw massive amounts of computing power at it. Which still has diminishing returns.

Or something like that?

Weirdly enough, it's kinda like many other currencies, in that if people believe it has value, it does.
That perceived value fluctuates a bit more than what we might call "normal" currency, however.

Probably because it's held by fewer hands, and thus a smaller number of hands moving it causes a bigger blip on the graph.

The idea of decentralized public ledgers has merit. The basic concept of a block chain has merit. But crypto as an investment has none.

The basic premise of a normal investment: A company has an IPO and sells off part of the company for a price. The money raised in the IPO goes to the company. The company (hopefully) uses that money to grow and make profits, part of which go to the investors who own the stock. If at a later date a stock holder wants to cash out, the company is the buyer of last resort.

Stocks have an innate current value that is independent of public perception because the company has an innate value.

Crypto works differently. People pay cash to an exchange and get credited with a virtual token That money goes into the pocket of the people like SBF. They use it to buy mcclarens, houses, politicians, drugs, escorts etc. The token has no innate value. SBF does not care if it goes to zero. There is no buyer of last resort. SBF isn’t going to give the money back. The only way to cash out a token is to wait until someone else buys into the scheme. Then you get your money, SBF gets a cut, the miners get a cut, and the new person is stuck with the token hoping to sell it before the bottom drops out.

The most important rule in crypto investing is that the new cash money coming in from investors must always be greater than the money going out. That’s why HODLing is key. If people were to try to cash out the entire system would immediately crash.

 

[Roadvirus]

The almost 30% drop in crypto currency investments over the last month prompted me to do some research and I found this article:

Cryptocurrency Is a Giant Ponzi Scheme

Cryptocurrency is not merely a bad investment or speculative bubble. It’s worse than that: it’s a full-on fraud.

jacobinmag.com

As a former software engineer the discussion of the technology seems accurate but my layman's knowledge of finance does not allow me to judge that aspect of the article though it appears to be dangerous to our financial system. China and India have virtually banned crypto currencies and perhaps for good reason. Can anyone else provide incite.

Like ‘The 1929 Crash’—New Crypto Winter Warning As Sell-Off Wipes $1.5 Trillion From The Combined Bitcoin, Ethereum, Solana, BNB, Cardano And XRP Price

A new "crypto winter" could be around the corner after a huge crypto price crash has wiped $1.5 trillion from the combined cryptocurrency market—hitting bitcoin, ethereum, BNB, solana, cardano and XRP hard...

www.forbes.com

Crypto is crashing—and experts predict more pain ahead

Stalwart coins like Bitcoin have shed over 40% in recent months.

fortune.com

Financial fraud? I don't know.
Bad idea to invest in? Absolutely.

 

[The Mark]

The idea of decentralized public ledgers has merit. The basic concept of a block chain has merit. But crypto as an investment has none.

The basic premise of a normal investment: A company has an IPO and sells off part of the company for a price. The money raised in the IPO goes to the company. The company (hopefully) uses that money to grow and make profits, part of which go to the investors who own the stock. If at a later date a stock holder wants to cash out, the company is the buyer of last resort.

Stocks have an innate current value that is independent of public perception because the company has an innate value.

Crypto works differently. People pay cash to an exchange and get credited with a virtual token That money goes into the pocket of the people like SBF. They use it to buy mcclarens, houses, politicians, drugs, escorts etc. The token has no innate value. SBF does not care if it goes to zero. There is no buyer of last resort. SBF isn’t going to give the money back. The only way to cash out a token is to wait until someone else buys into the scheme. Then you get your money, SBF gets a cut, the miners get a cut, and the new person is stuck with the token hoping to sell it before the bottom drops out.

The most important rule in crypto investing is that the new cash money coming in from investors must always be greater than the money going out. That’s why HODLing is key. If people were to try to cash out the entire system would immediately crash.

People who bought the crypto wait for people to buy the crypto and drive up the price, hoping to sell at a high point and get back more money than they bought it for originally.

 

[Yes_Minister]

Financial fraud? I don't know.
Bad idea to invest in? Absolutely.

FTX sounds like a giant ponzi scheme.

I would not invest my money in something I didn't understand.

 

[multivita-man]

Financial fraud? I don't know.
Bad idea to invest in? Absolutely.

Because it poses as an investment but actually isn't, it invites fraudulent players, and it invites a whole lotta other people who don't the difference between crypto and real currency or the difference between crypto and an investment. Because crypto has lacked transparency and because of consumer ignorance, fraud is inevitable.

 

[multivita-man]

FTX sounds like a giant ponzi scheme.

I would not invest my money in something I didn't understand.

The best advice for anyone looking at crypto or any other investment for that matter.

 

[Carjosse]

The idea of decentralized public ledgers has merit. The basic concept of a block chain has merit. But crypto as an investment has none.

The basic premise of a normal investment: A company has an IPO and sells off part of the company for a price. The money raised in the IPO goes to the company. The company (hopefully) uses that money to grow and make profits, part of which go to the investors who own the stock. If at a later date a stock holder wants to cash out, the company is the buyer of last resort.

Stocks have an innate current value that is independent of public perception because the company has an innate value.

Crypto works differently. People pay cash to an exchange and get credited with a virtual token That money goes into the pocket of the people like SBF. They use it to buy mcclarens, houses, politicians, drugs, escorts etc. The token has no innate value. SBF does not care if it goes to zero. There is no buyer of last resort. SBF isn’t going to give the money back. The only way to cash out a token is to wait until someone else buys into the scheme. Then you get your money, SBF gets a cut, the miners get a cut, and the new person is stuck with the token hoping to sell it before the bottom drops out.

The most important rule in crypto investing is that the new cash money coming in from investors must always be greater than the money going out. That’s why HODLing is key. If people were to try to cash out the entire system would immediately crash.

That is literally the definition of a Ponzi scheme. Just call it what it is.

 

[Yes_Minister]

Aged milk > Canuck maple syrup

Really, how many people prefer spoiled milk to Canadian maple syrup?