Most people aren’t familiar with the cryptocurrency market. They merely see the price of Bitcoins trending higher and say ‘hey, that’s really cool. I should buy some for my clients.’
Let me explain to you why you’re a fucking moron for doing so.
The price of Bitcoins and Ethereum are totally dependent upon the ICO market. Oh, you aren’t in the least familiar with this wild west “Initial Coin Offering” market?
Let me explain.
Instead of going through the rigorous process of raising money via traditional means, the IPO or VC market, start ups and now raising hundreds of millions, maybe billions (hard to say, it’s not tracked efficiently) — by floating their own tokens aka ‘currencies’ to crypto lovers. Unlike in the VC world or IPO, the buyers of the tokens do not possess voting rights or even own a piece of the company — just the essence of the company.
Sometimes the tokens could be used to purchase whatever that company sells. If it was iBankCoin, you could take the Flycoins to buy Exodus subscriptions or After Hours with the Trading Addict. You could then trade those tokens to people who wanted the service, or on an exchange, where people bid up the price, with reckless abandon, to valuations that make the dot com bubble look conservative.
There are companies backed by NOTHING worth hundreds of millions. When I say ‘NOTHING’, please do not misconstrue that with your typical start up trying to build a business. No, these NOTHING companies are literally jokes, without business models. They are just shitposting and raising money for the fun of it.
Dogecoin, a currency backed by likeness of Shiba Inu dog, an internet meme (nothing more) — valued at $194 million.
How prolific is this ICO market?
A company named Tezos just raised over $200 million in a record offering. Doing a cursory google search will reveal that the ICO market is much bigger than is being reported. Companies are raising money in Bitcoins and Ethereum, which is the reason why those two currencies, especially the latter, are so strong. Each offering provides fresh demand for them. It is, without question, the biggest bubble since the housing collapse of 2008.
Presently, there are over 800 currencies valued at over $82 billion.
Here we have a company that issued a token called ‘Useless Etherum token‘ valued at $42,000 — down from a high of $75k. Or, how about this one — FUCK Token — valued at more than $1.1 million, down from $2.3m.
What does Fuck Token do? Let’s have a gander at its ‘Fucking Whitepaper.’
Let’s not forget PEPE Cash, valued at $6.7 million — backed by RARE PEPE ART.
Want in?
In short, when you buy Bitcoin or Ethereum, you are buying into a digital currency that is predicated upon an ICO market that is totally unregulated, backed by only the white papers they publish, ‘peer reviewed’ on Github and Reddit — beset upon by countless hucksters and future American Greed stars whose only interest is to get rich off the hype.
If the SEC ever decides to step in, light’s out.
UPDATE: And Ethereum is down ~20% after another report of fraud.
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What kind of tulip bulb would you like today?
Hey Japan,
You Suck.
Japan’s population fell this year at the fastest pace since 1968, when the earliest comparable figures started getting collected
“marking the eighth consecutive year of declines”
“a mounting demographic challenge… roughly two decades in the making… Some even call the situation a “demographic time bomb,”
http://www.businessinsider.com/japans-population-falling-faster-than-ever-before-2017-7
Why does this make Japan suck? You WANT more humans? I generally dislike people so I welcome this. Plus with increasing automation ergo less labor demand, I think it’s healthy. Go watch the movie idocracy, perfect satire close to this scenario.
Showtime, the market has never not been manipulated in some way shape or form. Go back to the robber baron era with railroad stocks- arguably the Silicon Valley IPO era of the mid to late 1800’s. Jay Gould and James Fisk just flat out printed his own shares of Erie Railroad in order to water down Vanderbilt’s stake… this has happened literally a million times in a million different ways over the past 150 years. You play with the obstacles or you sit it out- that’s the game.
Nutbag
Dipshit
Everything’s in bubble mode
The example’s you provide are probably correct for most of these “coins”, with the exception of VGINA, but that’s for another time. Seriously, I’m not certain that it applies to Bitcoin and Ethereum…yet.
If the price growth continues for a period of time whereby Bitcoin moves past $5k and then to $10k, will you at some point become a believer or just write it off to the bubble becoming that much bigger?
NVDA is rising too because of demand for higher processing power to mine coins.
Bitter that you missed out on the early entry into the degeneracy?
No, I don’t get mad over stuff I was unfamiliar with. I am mad over NVDA and FIZZ, not BTC.
I am simply astonished by it.
Is that what brought AMD back from the dead, too?
McAfee’s point set topology analysis of the BTC blockchain predicts a value of more than $2 million = $32 trillion capitalization in 3 years. Any takers?
BTC is a strange animal. As market mechanisms go it’s not at all like any other financial instrument. There is no need to interface with banks for everyday use. This is why Yellen (FED) can’t do anything about it.
For this reason the blockchain is interesting, as it records all trading activity, not just at the exchanges but everywhere. That’s what McAfee is considering.
….or he may end up eating his own dick if he’s wrong.
Pretty sure Congress or another federal agency could make it illegal if they chose to. Analogous to Uber vs. taxis, which I think is why many cryptos are partnering with banks.
They might not be able to stop it completely (a la online gambling), but could certainly make it a lot harder for the average joe to convert from crypto to USD, and being illegal would be a pretty big deterrent for the masses.
Can you explain how bitcoins price is dependent on ico prices? You are still failing to see the big picture fly, and your kids will laugh at you one day bc of it.
Ps. Eth is a scam
Because the entire castle of Bitcoin is built upon the sands of ICO’s. Where do you think the Bitcoin winners are putting their money?
Thats for them to decide, and i 100% agree with you that 99.9% of ICOs are good ole scams but litterally none of that derails bitcoins purpose. If any of these “whales” had more sense and less fake money ICOs could be a great thing but again has no effect on BTC price.
Can I ask you one question that you swear your answer is true, have you still not bought just 1 BTC?
If I were a betting man, I’d bet big that Fly hasn’t touched BTC. I’m a betting man btw.
Just look at bitcoin price action. I don’t see evidence of frauds either.
ETH’s usp is the contract language. But with the advent of the Bitcoin side chain contract language RSK – ETH’s usp may vanish.
To be fair, shibas are an amazing breed.
it is backed up by an agreement by two parties on it’s value – just like a baseball card, just like a bottle cap.
I do see signs of a temporary top though – more and more regular folk at weekend parties and campfires are talking about it – a sure sign of a top.
So what value does Dogcoin have? 99% of these ICOs are not only scams, they are jokes.
I agree – I want to see them crushed, but anytime I have felt like that with an instrument, it’s always based from missing out on a spectacular run
My brother in law calls himself a digital asset trader now. Told me at our last family party, hey, you can program, I want to hook you up with some people to create a new coin.
I just smile and nod.
Dogecoin started as a joke. Just a way for Redditors and other forums participants to tip each other if they liked someone’s comments. And they did, and it got traction.
Steem?
I have no idea what any of this stuff is or what you are talking about.
I’m still trying to figure out how to work the ATM machine.
Always levity from you. Thanks.
Just read this about Chinese Bitcoin Miners.
Feel more confident?
https://news.bitcoin.com/brief-glimpse-lives-chinese-bitcoin-miners/
Ha! New FANG stock ETF symbol is ‘FNG’, for all you Fucking New Guys.
here’s how you know BTC is a bubble:
https://www.reddit.com/r/Bitcoin/comments/6oa7ih/got_some_fresh_recruits_on_the_btc_train/
Yes it is a bubble but one endorsed by Bill Gates. When they valued facebook at 15 billion I thought they were crazy. Nasdaq and housing prices are at the same levels they were in 2007. Those were due to commodity demand. Now we have less commodity demand. what is the bubble?
Buy heavily. Just don’ t come to normal people later, hat in hand. Bill Gates got lucky, very lucky, when IBM handed he and Allen the Keys to the Kingdom. Bill Gates never did shit on his own.
plus Gates’ mom was instrumental in getting the contract.
“Oh is that Mary Gates’ boy’s company?” since Opel and Bill Gates’ mother served together on the national board of the United Way.
https://tinyurl.com/ydyczvc8
Where can I buy a stash of these “FlyCoins”? I want in.