Originally posted at Capitalstool.
Just a PONZI scheme that soaked up a large part of the excess liquidity from the big 40% M2 print.
No big print now (well less of a print anyway….M2 still increasing) so no liquidity to push crapto higher.
So it collapses under the weght of its lack of intrinsic value….ie..no real income and the transactional and mining costs.
A wealth transfer vehicle just like SPACS.
A wealth transfer scheme just like long bond funds were in 2019 and 2020 when they basked in the high returns of endless FED provided liquidity which turned real bond rates negative.
Think of the big print as basically a welfare scheme for fraudsters.
Money is getting smarter….slowly…..as this bear wears on.
Note the staking schemes in Crypto are just PONZI engines designed to attract the dumb money and provide the liquidity so the insiders can cash out their large stakes.
However if/when the FED goes full print again expect a partial resubstantiation of the craptoverse and the other WTV’s.
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