Another greater example of the NFT / crypto-mania scam and impending bubble pop that is coming for this industry. 🔗 https://www.cnbc.com/2024/05/02/bored-ape-yacht-club-nfts-floor-price-sinks-ceo-announces-layoffs.html #nft #crypto #btc #scam #blockchain #bitcoin
Were you living under a rock for 10 years?
NFTs were an obvious scam. It's like investing in Beanie Babies and POGs except exponentially worse. Crypto is 90% scam, 10% speculation. Some people got very rich. Some people win the lottery too. I made a fair amount, at least didn't lose any. Crypto is a zero-sum game. For anyone to make money at it, someone else has to lose money. This is because it is an unproductive asset. In contrast, it is possible to invest in stocks, not just gamble with them. These are productive assets and it's not a zero-sum game.
Thanks chatGPT
Crypto bros claim Bitcoin is the new gold. So that's the *best* it could be. Gold is an unproductive asset, it just sits there. It is not a business, it can't produce any returns. People hold gold as an alternative to cash, as a hedge against inflation. You could hold some Bitcoin as a hedge against inflation. Crypto seems to follow stocks pretty closely, unlike gold. People move into gold and silver when the stock market goes down, to try to avoid the downside (not saying this strategy is good or bad, it's what happens) but crypto is speculative so it is driven by loose money and is not conservative like gold. There were also people who knowingly got in a rug pull because they thought they could join a pump and dump Discord server and scam other people but they got scammed themselves. Or bought it because a YouTuber promoted it or they thought "El0n Musk" would double their money and send it back to them because they got a Twitter reply or saw an AI generated YouTube ad. So that's why crypto is 90% a scam. People were looking for a get rich quick scheme.
NFTs aren't so much a scam as they are a grift. Some digital assets do have intrinsic value due to their rarity, but they only work on the "greater fool" theory.
So you are saying there is a difference between a scam and small scale swindling?
If I am a Nigerian prince and I promise to send you millions of dollars if you just wire me a couple thousand first, that is a scam. If I sell you a course on how to make a billion dollars day trading and pick up women, that's a grift. You get the course, it's not a lie. You could hypothetically make a billion dollars and maybe supermodels would fawn over you. But it's a grift, the product exists but it's useless. People really did pay millions for funny monkey pictures and got funny monkey pictures. But they had a hard time convincing other people to pay even more than that for them. The hype wore off in a few months and they lost 99% of their value - nobody wanted to buy them.
Some people will tell you all derivatives are a scam. Those same people will at the same time have a $60b dollar derivatives business in their portfolio. Their name definitely doesn’t rhyme with Shmarren Shmuffet. AFAIK as long as risks are disclosed and understood clearly, without misrepresentation or half truths and there’s consent, you can’t call it a scam.
Business needs to restructure to find its way. How is it different from any other company laying off? Unless your theory is that the world is a scam 🌍☮️
Welcome to 10 years ago