‘The Entire Cryptocurrency Market Is Basically a Ponzi Scheme’ – FAIR

stocks are like legal ownership in a company, whereas cryptocurrencies are basically nothing. They’re basically just digital cells on a spreadsheet that people trade back and forth. They’re like digital Chuck E. Cheese tokens, almost, just in the sense that there’s nothing, there literally is nothing underneath any of them.

But it misses the mark, because the issue with the 2008 crash was that the banking system was under-regulated. And this is kind of exactly the opposite. These are people who want to privatize financial markets entirely. Because cryptocurrencies, I mean, the one thing they do well is that they are decentralized. They are decentralized networks. There’s no central managing authority, at least the Bitcoin blockchain isn’t, right? And, yeah, it’s just like they’re privatized money, privatized financial markets. And to me, that’s the opposite of what we want, to avoid another major crash.

But the thing about them is there’s nothing stopping them from printing as many as they want, which is basically what’s happening. You have these private companies issuing fake dollars on the blockchain, and then sending them out to their own exchanges, and doing basically God knows what with them. And there’s nothing stopping them from using these fake dollars to buy up Bitcoin assets.

‘The Entire Cryptocurrency Market Is Basically a Ponzi Scheme’ – FAIR