Well that didn’t take long. FTX, the crypto currency exchange went from a “worth” of billions of dollars to practically zero in a matter of days. Just to make things interesting other crypto exchanges were invested in FTX. In fact, it seems like the whole industry is invested in each other. More will go down.
So here’s what I’m going to do. I’m inventing Sixbears Coin. I’ll be issuing 16 coins. Each one will be “worth” a billion dollars. Now my company is worth 16 billion dollars. What can you do with a Sixbears Coin? You can try and sell it to some greater fool for 2 billion dollars.
The big difference between Sixbears Coin and FTX is that FTX got real people to invest real money into the company. Those FTX coins couldn’t actually be used for anything like keeping the lights on or putting coffee in the break room. Investors’ money did those mundane chores.
It kinda looks like Monopoly money. If it was just a board game there wouldn’t be a problem. The problem is that unlike a $10 board game. FTX cost investors some serious real money. That real money going down a rabbit hole has real world implications. There’s even some whispers that this is a black swan event could take down world markets in general.
Won’t that be interesting?
What always amazes me is that real people with serious money buy into these things. Then again, it look like Elon Musk just spent billions of dollars on Twitter and is quickly killing it. Just because you are rich doesn’t mean you can’t make some amazing mistakes.
-Sixbears
Musk isn't actually killing Twatter. He did however greatly overpay for it. It was a typical silicon valley house of cards. It produced nothing of value and it's only value was based on perceptions and how much ad revenue those perceptions generated. Once the "woke" decided they didn't want to be part of it and the advertisers started pulling back it's 'book value' started dropping closer to it's real world value. I suspect Musk knew that was the case but went ahead with the deal anyway. He may yet rescue the company, nobody can say for sure.
ReplyDeleteI suspect that Twitter will be as successful as My Space.
DeleteOr maybe Musk wanted to make a point about Social Media? Thumbs up, thumbs down and like are just distractions when the snow needs to be shoveled off your driveway.
ReplyDeleteAs worthless as Crypto once the confidence is lost?
IDK Musk hasn't replied to my tweet asking him (mild sarc).
Sadly, I personally know someone that cannot go home right now because he bet their life's savings on a rebound of Crypto. Several thousand dollars that were to pay for heating and food, POOF.
Not a pretty sight. CON Men, CONgress and Kleptocracy a fish and governments rot from the head.
Pray for wisdom and act on it. That firewood will not split and stack itself, Tempus Fugit.
There's making a point and then there's spending billions to make a point.
DeleteLots of people will be suffering as their crypto investments disappear. It's sad.
Just as the real value of precious metals will be revealed when all the paper PM's are called in.
ReplyDeleteElectronic money is not real. It is a scam borrowing from the future . Only real physical substance is of value. Not promises, whether it be paper stock or money.
We are quickly coming to a reckoning to what is real.
Worse come to worse you can cast silver in a bullet mold.
DeleteIt amazes me no end that people are willing to exchange fake things for real things.
Two things: I'll invest pretend money on a pretend product, why not? And, Has Elon Musk had a MRI or something, seems his grip on reality is slipping.
ReplyDeleteHe was always a bit off center, but now he appears to be wobbling out of control.
DeleteHad that conversation with one of the psychs at work. Seems the closer one is to potential genius, the closer one is total insanity.
DeleteInteresting. That could explain it.
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