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The Great Cryptocurrency Scam

3 pointsby waltercliffordover 6 years ago

1 comment

Mtinieover 6 years ago
&gt; Whatever else one can say that cryptocurrency has accomplished, it has been one of the greatest destroyers of wealth in the financial history of mankind.<p>I&#x27;m not going to argue that cryptocurrency prices are in a great place, they aren&#x27;t.<p>In early January 2018 the combined market capitalization of the measurable cryptocurrency tokens was ~$825B. Today&#x27;s market capitalization is ~$146B, or about $679B in &quot;destroyed&quot; wealth. If you take Bitcoin&#x27;s price movement from $19783 to $4508 from the start of 2018 until today, in isolation, investors have seen losses of $266B.<p>This is a lot of money, no doubt, but you don&#x27;t need to go too far for examples using commonly described &quot;good&quot; assets with similar losses individually (a la BTC) or in aggregate (all cryptotokens) on a far shorter time horizon:<p>- Between October 3, 2018 and today, AAPL&#x27;s stock losses have &quot;destroyed&quot; ~$262B in wealth.<p>- FAANG stocks (Facebook, Apple, Amazon, Netflix, Google) have seen ~$822B in wealth destroyed as their stocks have fallen significantly from their high-water marks since the end of August 2018.<p>The ardent drum-beaters may say this is &quot;good for Bitcoin&quot; in some warped way (I don&#x27;t agree) and I certainly can&#x27;t argue that the current market outlook has many upsides, but hyperbolic criticisms aren&#x27;t helpful.