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/biz/ - Business & Finance

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52759819 No.52759819 [Reply] [Original]

So this is how I think crypto works in large parts. There are a couple of market makers that communicate with eachother and simultaneously buy large amounts of a crypto to pump the price, this creates retail fomo and a bullish chart traders will buy into. They pump it up untill a certain level and then they unload and rotate into another crypto. They also take into account demand for certain cryptoos and the macro economic situation and act accordingly. This pump and dump game can be played indefinitely, but as marketcaps grow, making high percentages over large amounts of money becomes increasingly difficult. However, there will always be money to be made with pump and dumps, its extremely similar to for example the effect of cocaine. You get an initial rush of euphoria followed by a gruesome comedown that takes way longer than the initial rush of euphoria. During the comedown you feel so bad that you say you will never do it again because it felt so bad. However, after enough time went by, you no longer feel bad about the comedown and then with marketmakers pump shit up again you start to feel the same euphoria and rush as you initially did and you cant stop yourself from wanting to feel those extreem feelings of positivity again.
This will never stop, its human nature, there will always be another bullrun, just wait and buy.

>> No.52759946

>>52759819
How is it almost 2023 and people still dont understand crypto is entirely a ponzi scheme/parasitic

>> No.52759959
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52759959

>>52759819

bump

>> No.52760276

>>52759946
How is it parasitic? Crypto right now is effectively a financial instrument that institutions can profit off by speculating price changes, but unlike other instruments like CDOs and derivatives, I see practically no chance of crypto being blamed for a financial crisis. It's not wrong to liken them to pet rocks, but pet rocks aren't parasitic.

>> No.52761102
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52761102

>>52759946

yes, that is true in part, but it also provides a relative stable currency to countries that are unable to manage their own money system. And it enables smart contracts. Smart contracts in combination with chainlink resulted in defi allowing for platforms such as gmx and gns, platforms that work with little to no overhead resulting in a lot more profit to be distributed to share/token holders.
Its retarted to think that crypto is merely a ponzi, its revolutionary tech stimulated by a basic human emotion: GREED.