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Is the crypto boom & bust just part of 'every bubble being pricked' in wider market sell-off?
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<blockquote data-quote="Hawkear" data-source="post: 657326" data-attributes="member: 4728"><p>Not backed by anything other than popularity within a group of believers. Bubbles are driven by people who do not understand intrinsic value, and the true worth of something is it usefulness when it is not ever sold.</p><p>Land, Goods and commodities like gold, ownership shares in profitable companies, even the aesthetics of works of art, fill that criteria.</p><p>Fiat money is backed by the economic strength of the government issuing it, but even that can be no guarantee as happened in Nazi Germany before the war and other dysfunctional governments around the world even today. Currency trading has that idea at its heart and is actually a measure of economic strength of the issuing government.</p><p>Still struggling to see how crypto currencies fit into that picture.</p><p>We can invent more and more crypto “things” and call them currency, coins, tokens or whatever, that people can buy and sell, just like gamers buy tokens to play online computer games. Is there any limit to how many different types can be invented and if not can they really have value?</p><p>We have already seen the collapse of some cryptos which flew high on a bubble enhanced by smoke and mirrors.</p><p>But then the world is full of believers.</p><p>Just some thoughts by someone who finds it hard to understand why he should buy in.</p></blockquote><p></p>
[QUOTE="Hawkear, post: 657326, member: 4728"] Not backed by anything other than popularity within a group of believers. Bubbles are driven by people who do not understand intrinsic value, and the true worth of something is it usefulness when it is not ever sold. Land, Goods and commodities like gold, ownership shares in profitable companies, even the aesthetics of works of art, fill that criteria. Fiat money is backed by the economic strength of the government issuing it, but even that can be no guarantee as happened in Nazi Germany before the war and other dysfunctional governments around the world even today. Currency trading has that idea at its heart and is actually a measure of economic strength of the issuing government. Still struggling to see how crypto currencies fit into that picture. We can invent more and more crypto “things” and call them currency, coins, tokens or whatever, that people can buy and sell, just like gamers buy tokens to play online computer games. Is there any limit to how many different types can be invented and if not can they really have value? We have already seen the collapse of some cryptos which flew high on a bubble enhanced by smoke and mirrors. But then the world is full of believers. Just some thoughts by someone who finds it hard to understand why he should buy in. [/QUOTE]
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Is the crypto boom & bust just part of 'every bubble being pricked' in wider market sell-off?
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