Nice bounce for the Crypto overnight!
BTC. Assistance on 12,000 will hold Also
A fantastic argument that they are a modern day pyramid scheme (by design) that will be made illegal in any point for an assortment of reasons.
Digital 'Currencies' Are ALL A Scam
2017-06-17 08:35 by Karl Denninger
http://market-ticker.org/
https://cryptorum.com/threads/karl-d...ll-a-scam.217/
ALL such digital currencies are by design and intent a means to separate you from riches and give it to whoever based said currency. They are therefore a pyramid scheme. This will inevitably lead to the seizure and closing of all systems -- if and when governments figure it out. The reason is simple: With a finite and ever-more-difficult means of mining every coin the impact on significance for participants is precisely the same as it is in any pyramid scheme. Since nothing of physical presence is created or dug from the ground there's not any utility value and thus no floor price, unlike gold or silver (both of which have industrial value on account of the metallurgical properties) The person who invents such a system gets to mine many coins at very low price (in electricity or anything.) He then watches the worth of coins escalate as every one becomes more challenging to mine and as hype takes over, and may convert that riches whether it be a fiat currency, real property or otherwise.
The founder consistently creates a grossly outsized profit in this fashion using the available profit falling exponentially and ratably in every single case simply based on the amount of participants. In the beginning recruiting the coins is easy. However recrunt others becomes tougher and tougher. This is precisely identical to what happens in a pyramid scheme that is conventional -- the founder gets a cut under him. The layer who all find the area unmowed with lots of clients make a lot of money also, but less than the group and so forth. But because the amount of clients is finite, just as is the range of coins, with each successive layer of participants it becomes harder and harder to find others to transact in sufficient volume to make a profit because the acquisition of every new (coin or client) becomes exponentially more-difficult. It's thus impossible on a basis for any such layout to be self-sustaining since it relies on an exponentially harder act in a world that is finite. ALL systems are inherently ponzi schemes whether we're talking about digital currencies or even the alleged sale of merchandise.
Karl Denninger is just insane he didn't jump on the Hype Train when itn't rolled.
No, joke apart. While he might be right to some level, he is missing the point that fiat currencies would be the pyramid scheme. Those on top benefit more and more from those below, while those at the base have to work their ass off and barely have enough to survive. Is not it? And what's paper money in the future? US$ has no floor price either. Just look at the US debt.
And moreover of this, I personally know some men and women who left countless Cryptos. And there are more. Also the gainers are the miners, particularly BCH and BTC.
Yeah, I remember him trashing silver when it was at $14 back in 2007 saying it was a bubble. That finally went to $50 prior to crashing.
Anyway, just posted this on another thread since you are right about the fiat system.
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The blockchain technology has become easily the most interesting part in all this. A totally gold / silver crypto currency would make a lot more sense because it would be endorsed by something with intrinsic value that is not essentially a scheme.
It's interesting the Royal Mint (currently UK government possessed) is in the process of setting up something similar at which you can buy, store and exchange 1g units of gold digitally with no storage costs and low transaction prices.
Http://rmg.royalmint.com/
Whether people will trust it is another issue altogether.
An update on the problem in South Korea - https://www.forexbrokerz.com/news/So...lose-exchangesthey'll include a ban on opening of anonymous cryptocurrency trading accounts and new laws that will allow regulators to shut cryptocurrency exchanges, if needed.
?The government had warned many occasions that virtual coins cannot play a role as actual currency and may cause high losses due to excessive volatility,? the government said in a statement.
HEY LETS TALK CRYPTO ! https://chat.whatsapp.com/1KDRzylORRX4obt31s8KbL
$DASH $XRP $BTC $BCH $LTC $ETHEREUM $ETC
So there's a connection between individuals announcing a bubble and them not knowing what the temptations they are talking about!
Just a classic instance of the market remaining irrational longer than you can stay solvent. :-D