The Crypto Crash And The Fed’s Massive Ponzi Scheme

It was liquidation time across the cryptoverse on Saturday. At one point, Bitcoin dropped to ~$34,000, 50% below its all-time high. That equated to a roughly $600 billion selloff, measuring from the peak (figure below). The CEO of Alpha Impact, a social crypto trading platform which also offers staking, stated the obvious in remarks to Bloomberg: Margin calls were afoot. Data from Coinglass suggested liquidations during crypto's multi-day swoon were the highest since the December 3 flash crash

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2 thoughts on “The Crypto Crash And The Fed’s Massive Ponzi Scheme

  1. Fiat currency backed by governments is the present not the past. Crypto is the new gold attempting to enslave people by virtue of nothing other than it’s own self righteousness. Those at the top of the food chain love creating new gods for the Poor to bow to.

    It is a force that I hope regular people never need to be impoverished by. Gold caused enough harm around the world
    In what way is crypto really a solution unless of course you were there first

  2. The one good thing about crypto is that the young will become interested in macroeconomics and monetary policy as they search for answers to why Bitcoin, Pudgy Penguins, and “stable”-coins (backed by the faith and credit of Madoff-copycats) became worth less than Chuck E. Cheese tokens over the next years.

    It’s pretty ironic crypto enthusiasts don’t see that their coins are based on pyramid schemes where people “stake” stable coins to get absurd returns. The way things are going, either stablecoins entice newcomers with better yields (to compete with reals) or they run out of bag holders and collapse (become unable to redeem tokens for fiat). As we know, increasing yields in a pyramid scheme shortens its lifespan. At some point, the only way to sell stablecoins will be to buy some non-pegged coin and sell it for fiat, further collapsing that coin.

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