What is the Most Polite Way to say PONZI? ButtCoin or BitCon?
Rug pull Crypto Greater Fool market is 107.37 times larger than the combined value of all silver miners at 19 billion.
The recent news of MicroStrategy spending $593.3 million to acquire an additional 55,000 bitcoins raises serious concerns about the nature of cryptocurrency investments and their potential risks.
This move, while bold, exemplifies the dangerous trend of leveraging debt to accumulate assets with no intrinsic value, a hallmark of both Ponzi schemes and the greater fool theory.
Cryptocurrencies like Bitcoin, which have never weathered a true economic recession, lack the fundamental backing of traditional assets. Unlike stocks or real estate, they generate no cash flow and have no tangible utility beyond speculation.
Their value is primarily driven by the belief that someone else will pay more for them in the future, the very essence of the greater fool theory.
The practice of borrowing money to purchase more of these speculative assets is particularly alarming. It amplifies risk and creates a precarious financial structure that relies on a continuous influx of new investors to sustain itself.
This bears a striking resemblance to the mechanics of a Ponzi scheme, where early investors are paid with funds from new investors, creating an illusion of profitability.
MicroStrategy's aggressive Bitcoin acquisition strategy, fueled by debt, is a prime example of this risky behavior. While the company may benefit in the short term if Bitcoin's price rises, it exposes itself and its shareholders to significant downside risk if the market turns.
This approach is not sustainable and could lead to substantial losses if the cryptocurrency market experiences a prolonged downturn or regulatory crackdown.
I like it Doggy Style … NOT!
Investors should be wary of such strategies and critically evaluate the fundamental value of their investments. The allure of quick profits in the crypto market often overshadows the inherent risks and lack of intrinsic value.
As history has shown with numerous financial bubbles, when the music stops, those left holding the bag often suffer the most..
While cryptocurrencies may have a role in the future of finance, current investment practices that rely on debt and speculation without underlying value creation are dangerous and unsustainable.
It's crucial for investors to approach these markets with caution, skepticism and understand the RUG PULL EVENT is months away (recognizing the signs of potential Ponzi dynamics and avoiding the trap of becoming the greater fool in an increasingly risky game.)
Does the money supply..expand...when bitcon rises...?
If micro brains/ strategy goes bust, will the banks bail them out...by borrowing bitcoins ?
IF bitcoin went to...zero... would that reduce the money supply by 2 trillion. ?
I smell a rat....