CFDs will they survive

  1. 25,233 Posts.
    lightbulb Created with Sketch. 29
    Crypto Currency

    I have not investigated this phenomenon previously and I do find it surprising that it has received so much attention
    If you will allow me to describe my version of what it is and maybe some more enlightened posters could point out my errors

    To start a currency one must create a mine, similar to a gold mine, in that they form a software program that is secure (like a gold mine so stuff can’t be pinched)
    Then they sell the initial shares (coins) through a (special) broker at a nominal fee to cover costs and receive direct cash money

    First difference the Crypto is produced out of the air, zero assets or collateral


    These shares/coins are then stored by the owner in a wallet to keep them safe

    Then as there is no actual mine or business the only way that the share can increase in value is by promotion, raa raa and the pure greed of people who believe they will be a millionaire by the end of the week.

    Most of them are unaware that it is all a figment of someone’s imagination, a virtual thing not a real thing

    At some time the coin holder needs money and wants to sell but the ability to sell is extremely limited, as he has to find someone to buy it, the original owner never buys them back, you have to hope that there is a person who can find your advert and buy your shares, of course although it is the same product there are hundreds of individual mines for buyers to choose form

    When I want to sell my actual shares I have the audience of the world’s population and the backing of the mines assets to maintain a price

    So like any Ponzi or pyramid scheme it has to run out of greedy buyers at some stage as there is nothing to enable it to maintain any value

    I fully agree that like any get rich scheme some people have become obscenely wealthy as a result, but how many people have sold or tried to sell their coins, what would happen if they did
    I expect that the gyrations of bit coins is simply the rich getting richer and milking the scheme as much as possible by pushing the price up and down

    Having said all that I fully agree that the fiat system is also a scam and the bits of paper do not represent any true money value but are only printed bits of paper with the bank able to change the value of them at will, but the big difference is the government support and partially guarantee the bits of paper, but NO ONE supports the coins
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.