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Is Crypto Dead?

valerianf

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Crypto is the hollygraal for all black market operations: mafias, gangsters, services similar to CIA...
Thus it will continue to exist.
After that, normal people have always be tempted by Ponzi schemes.
As long as humanity will go on, Crypto will go up and down.
Does humanity needs crypto??
For sure not.
 

Galliardist

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Luna was backed by other crypto assets and is why it depegged. The assets backing it dramatically dropped in value.

USDC is backed by U.S. dollar-denominated assets held at regulated and audited U.S. financial institutions.

USDT is similar, but there is some question as to whether the company has 100% backing. All I can do for you is copy what I was able to find with a quick search. "As of May 12, 2022, it was reporting assets of $81.3 billion for USDT. As of the same date, Tether reported holding 83.74% of its reserves in cash, cash equivalents, short-term deposits and commercial paper, 4.61% in corporate bonds, 5.27% in secured loans to unaffiliated entities, and 6.38% in other investments including digital tokens."
Thanks. I understood that both, and certainly Tether, are currently quite heavily invested in Ethereum... but it looks like that is fake news.

And never mind crypto, real national currencies are very volatile over time and not solidly backed any more.
 

JeffS7444

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And never mind crypto, real national currencies are very volatile over time and not solidly backed any more.
USA Federal Reserve wants modest amounts of inflation, because by slowly devaluing currency, it encourages people to do productive things with it, rather than hodling.

But right now, inflation is too high, and if need be, they'll inflict pain (like starting a recession) in order to rein it in.

There's no point in returning to the gold standard, and in fact, gold is a great example of a non-productive asset. It's decorative, and has limited industrial applications, but otherwise, it just sits there.
 

Galliardist

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USA Federal Reserve wants modest amounts of inflation, because by slowly devaluing currency, it encourages people to do productive things with it, rather than hodling.

But right now, inflation is too high, and if need be, they'll inflict pain (like starting a recession) in order to rein it in.

There's no point in returning to the gold standard, and in fact, gold is a great example of a non-productive asset. It's decorative, and has limited industrial applications, but otherwise, it just sits there.
I don't expect a return to the gold standard or anything similar. In fact i think Britain's return to the gold standard in 1925 exacerbated the international contagion after the US stock market crash in 1929. Sterling couldn't take the load as an alternative reserve currency. But that's not the common view, of course.

There's no way out of the world of floating currency values and the question of what is backing a currency in practice. It's just worth pointing out that cash, or anything else, is not a guaranteed asset in this day and age. Crypto is not as exceptional as we might think, though the value of most coins, at least, is much more tenuous than many other things. Even the Mona Lisa may suddenly become publicly regarded as a piece of tat, no longer worth seeing, one day!

I'm also going to point out that this is an international forum and your answer is somewhat US centric, and we do need to take into account the international ramifications of the sharp rise in US interest and the resulting demand for the US dollar, as well. Given the cause of the current round of inflation, that's not a simple question.

There is always, when the value of investments is under threat, a tendency to buy US assets and currency and to move out of other currencies, and we can see that happening at the moment.
As cryptocurrencies are the riskiest of all, we could expect a rush out of them at this time as well. It doesn't mean they are dead, any more than say the Australian dollar is "dead" because it's value against the US dollar has fallen by 15% or so in the last few months. The difference in the fall in price of non-US currencies and other investiments represents the perceived difference in the degree of risk of owning those things... and cryptocurrencies are being seen as much riskier than most national ones, that's all.
 

Destination: Moon

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I read this site every week.

Here's the header, link below:

Illustration: A sad-looking Bored Ape Yacht Club NFT monkey looks at a world engulfed in flames.

Web3 is Going Just Great​

...and is definitely not an enormous grift that's pouring lighter fluid on our already smoldering planet.

 

eddantes

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Ponzi-Sceme.jpg
 

JeffS7444

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Sure, they sense an opportunity in providing services, but that's not the same thing as believing in the value of today's crypto.
https://nypost.com/2022/09/22/jamie-dimon-calls-bitcoin-a-decentralized-ponzi-scheme/
 
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Chromatischism

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Dimon has always said that. He also sees it as an opportunity, nonetheless. It's also funny because it's no different than stocks, which he does believe in.
 

JeffS7444

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Dimon has always said that. He also sees it as an opportunity, nonetheless. It's also funny because it's no different than stocks, which he does believe in.
I guess that can be sort of true if meme stocks are your thing, but *sigh*.
 

Chromatischism

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I guess that can be sort of true if meme stocks are your thing, but *sigh*.
Meme stocks are just stocks that a group of people created a community around and bought up thinking they would all get rich. But fundamentally what makes the price go up or down is the same as any other stock (or crypto asset).
 
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