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Pompous Elitist

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LoL, let's come back to this in 2025.

The cryptos in their current state are a con, with all the attendant industry services and salesmanship and nonsense articles springing up around them. Proof of work has no future in particular. Proof of stake is a theory that hasn’t been tested in a practical sense in any large way in terms of security or governship. Maybe it turns out to be workable, maybe not. Currently, it’s a con. Many problems people are dodging, or ignoring, as they talk up the prices.

I hope you are not betting the farm, literally, on the thousands of cryptos out there. Play money, fine. It’s almost a cult, like a MLM.
 

justthefacts

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The cryptos in their current state are a con, with all the attendant industry services and salesmanship and nonsense articles springing up around them. Proof of work has no future in particular. Proof of stake is a theory that hasn’t been tested in a practical sense in any large way in terms of security or governship. Maybe it turns out to be workable, maybe not. Currently, it’s a con. Many problems people are dodging, or ignoring, as they talk up the prices.

I hope you are not betting the farm, literally, on the thousands of cryptos out there. Play money, fine. It’s almost a cult, like a MLM.

The number and size of all the businesses that have sprung up around crypto shows that this post is luddite nonsense.

YN8iIrh.png


 

WhoFellDownTheGopherHole?

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The cryptos in their current state are a con, with all the attendant industry services and salesmanship and nonsense articles springing up around them. Proof of work has no future in particular. Proof of stake is a theory that hasn’t been tested in a practical sense in any large way in terms of security or governship. Maybe it turns out to be workable, maybe not. Currently, it’s a con. Many problems people are dodging, or ignoring, as they talk up the prices.

I hope you are not betting the farm, literally, on the thousands of cryptos out there. Play money, fine. It’s almost a cult, like a MLM.

I'm not out there head hunting the next 1000x alt coin, no - i don't have the kind of money to play around like that. I'm mostly invested in top 20 coins with white papers that spell out a purpose that i genuinely believe in (Cardano/ADA for example) and a history of recovery and growth coming out of past bear markets. I understand that the whole Reddit mania and get-rich-quick fanboys give it a bad name, but when you look at what it will do with things like the security and transfer of medical records, voting authenticity and what they're already doing in Africa with student ID accounts, it's hard not to be excited about the prospects.
 

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Berkshire Hathaway Vice Chairman Charlie Munger’s distain toward bitcoin has only intensified amid the digital asset’s record run this year.

“Of course I hate the bitcoin success,” the 97-year-old Munger said during a Q&A session at Berkshire’s annual shareholder meeting Saturday. “I don’t welcome a currency that’s so useful to kidnappers and extortionists and so forth, nor do I like just shuffling out of your extra billions of billions of dollars to somebody who just invented a new financial product out of thin air.”

“I think I should say modestly that the whole damn development is disgusting and contrary to the interests of civilization,” said Munger, a legendary investor in his own right.

Warren Buffett, who avoided the initial question on bitcoin earlier, responded to Munger’s answer: “I’m alright on that one.”

The “Oracle of Omaha” said he didn’t want to comment directly on the digital token because he didn’t want to get grief from everyone who is long.

The world’s largest cryptocurrency enjoyed a head-turning rally this year, topping $60,000 apiece in April as involvement from Tesla to major Wall Street banks made bitcoin mainstream. Tesla recently made a $1.5 billion bet on bitcoin and now accepts the digital currency as a method of payment for its cars. Meanwhile, Goldman Sachs and Morgan Stanley are looking to offer their wealthy clients some exposure to bitcoin.

Bitcoin last traded above $57,000, up from about $30,000 at the start of 2021, according to Coin Metrics.

Munger has long criticized bitcoin for its extreme volatility and a lack of regulation. At the annual shareholders meeting for Daily Journal in February, Munger said bitcoin is too volatile to serve well as a medium of exchange.

“It’s really kind of an artificial substitute for gold. And since I never buy any gold, I never buy any bitcoin,” Munger said then. “Bitcoin reminds me of what Oscar Wilde said about fox hunting. He said it was the pursuit of the uneatable by the unspeakable,” he added.
The f hates freedom.
 

stocker08

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The number and size of all the businesses that have sprung up around crypto shows that this post is luddite nonsense.

YN8iIrh.png



Just because people are rushing to dump money into crypto, doesn't mean that they are all sound, with practical applications. Crypto in its current state is a monster bubble that will pop eventually. Dogecoin for example.....has (or at least had) an $80 billion market cap. Larger than Moderna, Dell, GM, etc.....

Fact is that, I believe.....10k new coins make their way into the fold EVERY day. It's not sustainable in its current form. Very similar with other crypto currencies. Some will eventually have practical uses.....but most are being way overvalued and will eventually be a footnote. lol......gamestop is back to nearly $250 a share. Retail investors can overinflate a company (or crypto) way past its true value if there is enough support.

Personally....I'm sick of the gamestop and crypto stuff. It's fine to play speculatively with crypto.....but people have rushed to dump their money into this stuff. And unfortunately it's pulled a lot of investors away from the OTC.
 


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I'm not out there head hunting the next 1000x alt coin, no - i don't have the kind of money to play around like that. I'm mostly invested in top 20 coins with white papers that spell out a purpose that i genuinely believe in (Cardano/ADA for example) and a history of recovery and growth coming out of past bear markets. I understand that the whole Reddit mania and get-rich-quick fanboys give it a bad name, but when you look at what it will do with things like the security and transfer of medical records, voting authenticity and what they're already doing in Africa with student ID accounts, it's hard not to be excited about the prospects.

If the tech works...this is like selling fitness bands that detect blood glucose in an MLM. The tech is always just around the corner...
 

Pompous Elitist

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This is nothing more than new age penny stocks. This has been around for a long, long time - now with a new twist. The whales/insiders will always win on the price movements. Kudos to those that make a little money off these schemes but the nonsense with Bitcoin and Ethereum mining is causing problems with actual legitimate activities, and frankly it’s annoying. Furthermore, it’s wasteful. That said, manias can go on far longer than many would think, until the supply of people willing to buy in is exhausted

The WSB and Discord phenomenon is breathtaking to behold. The problem is, once the smart guys Joe Speculators money...they’ll come with hat in hand. Whocouldaknowed?



“Many young adults and others all of a sudden became extremely interested in stocks and investing, and this later also gave the crypto community and the cryptocurrencies a huge boost in popularity,” says one Discord user who goes by Alejandro. Alejandro was invited to his first crypto pump server in early February, during the GameStop hype. After making what he calls “a good profit,” 170 percent of his initial investment, Alejandro created his own group, FairPlay Crypto Pumps. It now has 10,500 members, who tune in every couple of days for a new “pump signal,” a server-wide message announcing which coin they’re pumping when. The gains, he says, comes from people who are not in the Discord. “This principle is called FOMO (fear of missing out),” he says. “Once outsiders see a sudden rise in an unexpected coin, they will buy shares. Meanwhile, the members of my group will sell their shares to the outsiders for a good chunk of profit.”

New members are greeted with FAQs describing 2,000 percent pumps and the potential for hundreds or thousands in gains. That’s not necessarily the reality. “The Discord server is a casino. As the saying goes, ‘The house always wins,’ and they’re the house,” says Thomas Hurley, 21, a member of several crypto pump Discord servers. After crypto evangelists began joining his gaming servers to advertise pump groups, he tried his hand at a couple coordinated price pushes. He never made much profit, but other people did. When Hurley began looking closer at some of these coins’ market trading pages on sites like Binance, he noticed some interesting patterns.

“A few seconds before they announced which coin to pump, there would be a huge spike,” he says. It looked like someone in the know bought up a lot of the coin beforehand, hugely boosting their potential to earn big by selling early. Hurley never had a chance.

...He isn’t alone. A 2018 study of Telegram-based pump groups found that five minutes before the pump signal (before the coin is even revealed), a designated coin’s price shot up about 5 percent. Back then, on average, only investors who bought in within the first 20 seconds after a pump could make a profit. Today, sources say, crypto pumps move so quickly that enthusiasts commission bots to buy and sell coins based on Discord announcements. The owner of one server, Pump It Up, says he lost several hundred dollars because he wasn’t using a bot, which can buy and sell within milliseconds. The experience prompted him to make his own group back in February.”

 


Wally

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Meaningless

Of course there are entities looking to profit off this.
Is having a store of value disconnected from a government meaningless?
Ask anyone living on a country with massive inflation. There is a nonzero risk of it happening here.
 



WhoFellDownTheGopherHole?

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This is nothing more than new age penny stocks. This has been around for a long, long time - now with a new twist. The whales/insiders will always win on the price movements. Kudos to those that make a little money off these schemes but the nonsense with Bitcoin and Ethereum mining is causing problems with actual legitimate activities, and frankly it’s annoying. Furthermore, it’s wasteful. That said, manias can go on far longer than many would think, until the supply of people willing to buy in is exhausted

The WSB and Discord phenomenon is breathtaking to behold. The problem is, once the smart guys Joe Speculators money...they’ll come with hat in hand. Whocouldaknowed?



“Many young adults and others all of a sudden became extremely interested in stocks and investing, and this later also gave the crypto community and the cryptocurrencies a huge boost in popularity,” says one Discord user who goes by Alejandro. Alejandro was invited to his first crypto pump server in early February, during the GameStop hype. After making what he calls “a good profit,” 170 percent of his initial investment, Alejandro created his own group, FairPlay Crypto Pumps. It now has 10,500 members, who tune in every couple of days for a new “pump signal,” a server-wide message announcing which coin they’re pumping when. The gains, he says, comes from people who are not in the Discord. “This principle is called FOMO (fear of missing out),” he says. “Once outsiders see a sudden rise in an unexpected coin, they will buy shares. Meanwhile, the members of my group will sell their shares to the outsiders for a good chunk of profit.”

New members are greeted with FAQs describing 2,000 percent pumps and the potential for hundreds or thousands in gains. That’s not necessarily the reality. “The Discord server is a casino. As the saying goes, ‘The house always wins,’ and they’re the house,” says Thomas Hurley, 21, a member of several crypto pump Discord servers. After crypto evangelists began joining his gaming servers to advertise pump groups, he tried his hand at a couple coordinated price pushes. He never made much profit, but other people did. When Hurley began looking closer at some of these coins’ market trading pages on sites like Binance, he noticed some interesting patterns.

“A few seconds before they announced which coin to pump, there would be a huge spike,” he says. It looked like someone in the know bought up a lot of the coin beforehand, hugely boosting their potential to earn big by selling early. Hurley never had a chance.

...He isn’t alone. A 2018 study of Telegram-based pump groups found that five minutes before the pump signal (before the coin is even revealed), a designated coin’s price shot up about 5 percent. Back then, on average, only investors who bought in within the first 20 seconds after a pump could make a profit. Today, sources say, crypto pumps move so quickly that enthusiasts commission bots to buy and sell coins based on Discord announcements. The owner of one server, Pump It Up, says he lost several hundred dollars because he wasn’t using a bot, which can buy and sell within milliseconds. The experience prompted him to make his own group back in February.”


Has people pumping GME stopped you from investing in the Stock Market? The tech isn't just around the corner - it's here. If you want to be terrified of the speculation part while it's being implemented, that's your loss (or, not gain) I suppose. As previously stated, I'll be happy to revisit this further down the line and eat crow if you're right. :)
 

justthefacts

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Just because people are rushing to dump money into crypto, doesn't mean that they are all sound, with practical applications. Crypto in its current state is a monster bubble that will pop eventually. Dogecoin for example.....has (or at least had) an $80 billion market cap. Larger than Moderna, Dell, GM, etc.....

Fact is that, I believe.....10k new coins make their way into the fold EVERY day. It's not sustainable in its current form. Very similar with other crypto currencies. Some will eventually have practical uses.....but most are being way overvalued and will eventually be a footnote. lol......gamestop is back to nearly $250 a share. Retail investors can overinflate a company (or crypto) way past its true value if there is enough support.

Personally....I'm sick of the gamestop and crypto stuff. It's fine to play speculatively with crypto.....but people have rushed to dump their money into this stuff. And unfortunately it's pulled a lot of investors away from the OTC.

This isn't money invested in cryptocurrency directly, though. In some cases, these are businesses funded by successful venture capital firms and run by successful entrepeneurs. And they're financial systems that will disrupt big finance the same way other digital businesses have disrupted other "old" industries.

Take MakerDAO. The coin associated with that is worth $1 and will always be worth $1. Its concept is decentralized lending, and Andreesen Horowitz has a $15M investment. They didn't do this because of a fad.

If anything Gamestop and AMC, etc prove that many of the complaints about crypto aren't founded. Those are highly volatile stocks being manipulated by memes, but they are "old" finance. All the standard criticisms apply more to Gamestop's stock than they do MakerDAO (for example.)

Doge is stupid and the differences between it and Ethereum, or UniSwap, or BTC are immense. Yes, people are blindly dumping money into both Doge and ETH, but there's also a ton of very, very smart money that is being used to build legitimate businesses based on the Ethereum blockchain (and others.)

Crypto is going to revolutionize finance and perhaps the law and perhaps many other industries.
 

Pompous Elitist

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Has people pumping GME stopped you from investing in the Stock Market? The tech isn't just around the corner - it's here. If you want to be terrified of the speculation part while it's being implemented, that's your loss (or, not gain) I suppose. As previously stated, I'll be happy to revisit this further down the line and eat crow if you're right. :)

I didn’t wake up this morning expecting to take on the Tech Bros but...

Yes, we’ll revisit it.
 

Pompous Elitist

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This isn't money invested in cryptocurrency directly, though. In some cases, these are businesses funded by successful venture capital firms and run by successful entrepeneurs. And they're financial systems that will disrupt big finance the same way other digital businesses have disrupted other "old" industries.

Take MakerDAO. The coin associated with that is worth $1 and will always be worth $1. Its concept is decentralized lending, and Andreesen Horowitz has a $15M investment. They didn't do this because of a fad.

If anything Gamestop and AMC, etc prove that many of the complaints about crypto aren't founded. Those are highly volatile stocks being manipulated by memes, but they are "old" finance. All the standard criticisms apply more to Gamestop's stock than they do MakerDAO (for example.)

Doge is stupid and the differences between it and Ethereum, or UniSwap, or BTC are immense. Yes, people are blindly dumping money into both Doge and ETH, but there's also a ton of very, very smart money that is being used to build legitimate businesses based on the Ethereum blockchain (and others.)

Crypto is going to revolutionize finance and perhaps the law and perhaps many other industries.

It’s just dumb and smart money chasing yield. The sad part of this is there are some pretty smart people writing the code, etc that could be doing legitimate work but are involved in what is essentially a sophisticated casino con industry.
 



Wally

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It’s just dumb and smart money chasing yield. The sad part of this is there are some pretty smart people writing the code, etc that could be doing legitimate work but are involved in what is essentially a sophisticated casino con industry.

Same could be said about all the investment bankers. There is a solution, make the tax code highly favorable to long term investing and regulate away high speed trading which is nothing but a parasite.

Eliminate being to be able to write off a loss for any investment not held for a year and jack up the capital gains tax on any investment held for less than a year.

Because crypto isn't considered a security it is open to massive manipulation.
 

stocker08

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This isn't money invested in cryptocurrency directly, though. In some cases, these are businesses funded by successful venture capital firms and run by successful entrepeneurs. And they're financial systems that will disrupt big finance the same way other digital businesses have disrupted other "old" industries.

Take MakerDAO. The coin associated with that is worth $1 and will always be worth $1. Its concept is decentralized lending, and Andreesen Horowitz has a $15M investment. They didn't do this because of a fad.

If anything Gamestop and AMC, etc prove that many of the complaints about crypto aren't founded. Those are highly volatile stocks being manipulated by memes, but they are "old" finance. All the standard criticisms apply more to Gamestop's stock than they do MakerDAO (for example.)

Doge is stupid and the differences between it and Ethereum, or UniSwap, or BTC are immense. Yes, people are blindly dumping money into both Doge and ETH, but there's also a ton of very, very smart money that is being used to build legitimate businesses based on the Ethereum blockchain (and others.)

Crypto is going to revolutionize finance and perhaps the law and perhaps many other industries.
It’s just dumb and smart money chasing yield. The sad part of this is there are some pretty smart people writing the code, etc that could be doing legitimate work but are involved in what is essentially a sophisticated casino con industry.

I hear you, JTF....but I side with PE on this. Again....I think that legitimate practical uses for crypto are few right now. That could change. But my entire post was about your claim that a bunch of businesses have "sprung" up around crypto. Until widespread acceptance for these cryptos exists....its all speculatory in nature. A lot of FOMO money being funneled in at this point.
 

Wally

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I hear you, JTF....but I side with PE on this. Again....I think that legitimate practical uses for crypto are few right now. That could change. But my entire post was about your claim that a bunch of businesses have "sprung" up around crypto. Until widespread acceptance for these cryptos exists....its all speculatory in nature. A lot of FOMO money being funneled in at this point.
I like the illegitimate uses best... FREEDOM!!!!
 

Section2

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I have definitely missed some huge price moves in crypto. I have only invested in companies with exposure to the space. Non government controlled currency has huge value but is a complete threat to government power. If it really got close to being widely used and a replacement for central bank control, every arrow in the quiver would be used to crush it. I still prefer gold despite its relatively meek performance. You can hold it. It has all the supply limitations of crypto. You can trade it electronically, it has intrinsic value. It’s far superior to crypto and trading way below where it should. Gold is a no brainer.
 

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Crypto miners, RIOT, MARA, etc on a rise the past four days or so. (Red today though.)
 

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When your industry in actual practice cannot be differentiated from a scheme


CA864B1D-3225-4F84-9F6E-9BE4B170B611.jpeg
 


Pompous Elitist

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You don’t realize it, but he’s doing you a favor. The number of legitimate businesses that support crypto transactions for something other than self interest or marketing reasons are falling. The writing is on the wall, is anybody reading it.




Elon Musk's reputation hits a low on Twitter after attacking bitcoin​


 

Pompous Elitist

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Tell you what...

Take $2000 and invest $1000 however you want.

Give me the other $1000 to invest in Crypto.

In 5 years, whomever has the best return gets to keep the entire amount.

Do you promise?

Final capitulation could take some time. OTOH, maybe proof of stake crypto proponents will be able to demonstrate its secure. I’m sure it’s just a year or two away.
 




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You don’t realize it, but he’s doing you a favor. The number of legitimate businesses that support crypto transactions for something other than self interest or marketing reasons are falling. The writing is on the wall, is anybody reading it.




Elon Musk's reputation hits a low on Twitter after attacking bitcoin​



It should be noted that Elon Musk is not selling any Bitcoin, just not accepting it as payment for Tesla.

My instinct is that Musk is bullish on Bitcoin, and wants to continue receiving billions of dollars in Govt subsidies. Moving Tesla towards Bitcoin, and away from the US dollar was probably not going to make him any friends when handout season came around.
 

Pompous Elitist

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Bitcoin will never be a widely used form of currency. It’s best utilized by extortionists.

It consumes a ridiculous amount of electricity and co-opts electronic components needed in other economic sectors.

Crypto is used as a vehicle to strip wealth from the unsophisticated. You know it, I know it, everybody that understands anything about investing knows it. It get it, survival of the fittest. Believe me, if Bitcoin didn’t have spillover into the real world I wouldn’t care about the dumb kids falling for this scam, but it does and I do.
 

Pompous Elitist

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Anonymous coming after Musk.

More proof of what it actually is. Why do certain entities move markets with cryptic tweets? Bitcoin and Ethereum, Doge and their bastard children like NFTs are make believe BS with a cult following.

If criminals, anarchists, libertarians want to have non-traceable means of exchanging non-existent mediums of value then so be it, but don’t trick dumb kids into throwing their meager life savings into bidding up the price.
 

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Bitcoin will never be a widely used form of currency. It’s best utilized by extortionists.

It consumes a ridiculous amount of electricity and co-opts electronic components needed in other economic sectors.

Crypto is used as a vehicle to strip wealth from the unsophisticated. You know it, I know it, everybody that understands anything about investing knows it. It get it, survival of the fittest. Believe me, if Bitcoin didn’t have spillover into the real world I wouldn’t care about the dumb kids falling for this scam, but it does and I do.
Crypto as a concept makes sense. Transaction costs need to be low and It needs to be widely accepted as a form of payment. If those things existed, it could become a store of value. They definitely don’t exist. Which is why I have always preferred gold. You aren’t going broke owning gold, you can physically transfer your wealth to relatives. You can’t forget your password. But it’s not a form of payment, and won’t be until fiat dollars collapse. And then only as a bridge to whatever comes next.
 

Pompous Elitist

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In the event of a national or worldwide catastrophe, or loss of confidence in fiat currencies the mediums of trade and value (for awhile) will be tangible things necessary for life: food, water, flesh, tools, commodities, guns and bullets not Bitcoin. Maybe gold. Perhaps it will be utilized as a highly conductive element suitable to build components necessary to build devices to trade Bitcoin 🙄
 




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