Wednesday, February 7, 2024

#38 / One More Time!


I have already said this! More than once! Click right here for a link that will provide you with access to my many statements to the following effect: 

"Crypto Is A Scam*"

Why should I send out a warning, one more time? I guess I am easily triggered by the thought that various people (even my own children, and their friends) might take real money, money belonging to them, and lose it all by "investing" it in cryptocurrencies. 

My father's admonitions come back to me. He bought me a book on the topic of how humans continue to be taken in by scams, and he gave it to me with the warning that I should pay attention. I think this was when I was in high school. That book is still in print. Check it out: Extraordinary Popular Delusions And The Madness of Crowds, by Charles Mackay. It's a fun read, besides being true.

If you don't think I know what I am talking about (and if you never met my father, so you have no real reason to believe that he knew what he was talking about, either), you might want to read a fairly recent article in The New York Times. The article was titled, "The Crypto Power Vacuum," and quoted Hilary Allen, a law professor at American University's Washington College of Law, and an "expert on financial regulation." 

Here is what Allen said about cryptocurrencies, in that New York Times' article: 

There is no intrinsic value to any of this.... The only hope is to have more money sloshing around, and more people willing to buy into it to create demand..... Crypto isn’t disrupting Wall Street; it’s merging with it..... It’s fairly obvious — they think they can make some money here (emphasis added).

So (one more time): Don't let the crypto-hucksters make their money at your expense! Don't bite!

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* For discussion of another "problem area" with respect to cryptocurrency, readers might check out an article in December 13, 2023 edition of The Wall Street Journal, which documents its massive impacts on water resources - "Bitcoin Mining Fuels Concern Over Water Use." 

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