The Co-Founder of Dogecoin, Billy Markus, said crypto prices are mainly driven by fools selling to even greater fools.
“I agree with the greater fool theory driving most of crypto prices, but I’m honestly wondering what percent you think any crypto is purchased from utility vs greater fool theory From my viewpoint it’s about 99.99% greater fool theory.”
The greater fool theory states you can profit from buying overvalued assets because there will usually be a greater fool willing to pay an even higher price. Under this theory, the cycle continues until there are no greater fools left.
Is Crypto A Fool’s Game?
Markus started the initial discussion by commenting on Bitcoin’s flat weekend performance. This soon spawned several threads, including statements that Bitcoin is dead, a waste of energy, and other such FUD.
But more interestingly, was a comment that crypto markets are inherently worthless and driven by greater fool theory. However, fundamentals will eventually “always win,” even if they count for little in the short term.
“crypto markets are a cesspool of dumb money chasing memes there is no noble movement in that, just a bunch of bros playing greater fool theory and getting played the tech is all that matters in the end. the fundamentals always win.”
This point of view would go some way in explaining Dogecoin’s unbelievable YTD run. Despite the recent crypto crash, DOGE is still +6,000% since the start of the year. For comparison, Bitcoin is +28% YTD.
While many commentators have tried to account for DOGE’s phenomenal growth, which peaked at a $92 billion market cap last month, it’s difficult to reconcile this with the ill-defined use case and unlimited token supply.
Galaxy Digital CEO Mike Novogratz tried to explain the logic-defying growth as an anti-establishment movement. In other words, Dogecoin’s value comes from people’s unhappiness with the current legacy financial system.
But is that enough to sustain Dogecoin in the long term?
Markus Cannot Comprehend How Dogecoin Has Developed
Markus no longer takes an active role in the development of Dogecoin. But he resurfaced during the height of Wallstreetbets and Dogecoin mania.
His first communication came in a Reddit post that detailed the origin story and his reasons for walking away. At the time of the post, the price of DOGE was spiking hard. Markus expressed his disbelief asking if Dogecoin deserves that?
“People are talking about Dogecoin going to $1 – that would make the “market cap” larger than actual companies that provide services to millions, such as Boeing, Starbucks, American Express, IBM. Does Dogecoin deserve that? That is not something I can comprehend, let alone answer.”
Markus was coming from the point of view that this project took a few hours to create and lacks utility. Yet somehow draws parity with industry titans that serve millions of real people.
With that in mind, it’s no wonder Markus believes most of the crypto industry is driven by greater fool theory.
John McAfee’s Strange Suicide Leads To Even Stranger Conspiracy Theories
Today is a sad day for the crypto-verse. For good or bad, John McAfee, one of the most eccentric, bizarre, and influential personalities of the ecosystem, said his goodbyes to the physical world in a no less eccentric, bizarre, and controversial way: He committed suicide by hanging himself from a rope in his prison hours after learning that the Spanish justice system had approved his extradition to the United States.
The news was first announced by his lawyer and later confirmed by the government of Catalonia, the region of Spain where McAfee was imprisoned.
“Everything indicates that it could be a death by suicide.”
Immediately after the news broke, the Crypto Twitter community quickly shared their shock. Some paid respect, others criticized… and others questioned everything that happened.
The conspiracy was easy to imagine, given McAfee’s background. Several cryptocurrency influencers began trying to tie up loose ends to understad what happened. They relied on several tweets from McAfee claiming that he would never commit suicide, that he was being threatened, and that he knew some secrets that the elites needed to silence.
But something that blew everyone’s minds was a picture uploaded post-mortem to his official Instagram account. A black letter Q, presumably pointing to the QAnon movement, though without explanation.
QAnon, or simply Q, is a conspiracy movement that claims that a group of satanic pedophiles dominate government and media elites. Its followers claimed that former President Donald Trump was waging a battle to destroy this group.
The movement gained momentum with the arrest of Harvey Epstein on sex charges. The suspicious causes of his controversial suicide prior to his testimony further heightened suspicions that he had in fact been murdered in order to be silenced.
The slogan “Epstein didn’t kill himself” went viral and is still observed when references are made to corrupt government practices in the United States.
And, of course, McAfee had a thing or two to say about this. He pointed out to similarities between his case and Harvey Epstein’s in many times, and assured he had many secrets that the government wanted to hide. If his allegations are true, and the QAnon post means anything, we could soon find out what he knew.
For you panicked people involved, even peripherally in Epstein’s murder:
I do, absolutely, 1,000% have, not just a dead man switch, but a twice daily check in switch.
If you think you are fast enough to grab me, torture me and get what you need before it activates,
— John McAfee (@officialmcafee) January 16, 2020
“McAfee Didn’t Kill Himself”
A Twitter user attempted to contact the administrator of the controversial right-wing news site Zero Hedge and introduce him to a Spanish journalist who claims to have video recordings and reports that Joe Biden allegedly teamed up with the Prime Minister of Spain, Pedro Sanchez, to fake McAfee’s suicide.
— ブランスさん (@brunsjpnrmu) June 23, 2021
MMCrypto, a cryptocurrency trader, also questioned McAfee’s suicide. He shared a tweet from McAfee in which he assured that if he were to appear dead, it would not be by his own decision, and everything could be a set-up “a la Epstein.”
Podcaster Peter McCormack shared the ticker $WHACKD in reference to another McAfee tweet showing a tattoo as a reminder that he would never commit suicide despite threats from US Officials.
— Peter McCormack (@PeterMcCormack) June 23, 2021
Getting subtle messages from U.S. officials saying, in effect: “We’re coming for you McAfee! We’re going to kill yourself”. I got a tattoo today just in case. If I suicide myself, I didn’t. I was whackd. Check my right arm.$WHACKD available only on https://t.co/HdSEYi9krq🙂 pic.twitter.com/rJ0Vi2Hpjj
— John McAfee (@officialmcafee) November 30, 2019
Also, Kim Dotcom, the man behind Mega.nz and active Bitcoin Cash advocate, claimed to be working with McAfee on an initiative to fight government surveillance shortly before the tragic news.
John was a colorful guy. A pioneer in data security. I always thought he partied too hard, should have avoided the drugs and focus on using his brillant mind for good. When he had a sober mind it was all about freedom. That’s how I will remember him, a freedom fighter.
— Kim Dotcom (@KimDotcom) June 23, 2021
And finance lecturer Vladislav Ginko also shared several tweets warning about the danger of McAfee and his family suffering from deaths caused by USAMRIID, the Department of Defense’s (DoD) lead laboratory for medical, biological defense research.
So far, no official autopsy has indicated his cause of death. In the meantime, theories will continue to emerge. But if there is one thing that everyone – conspiracy theorists or not – can agree on, it is that John McAfee lived his own way until the end.
Owners Of South African Investment Platform Vanish, Alongside 3.6 Billion USD Worth Of Bitcoin
The owners of the South African crypto company AfriCrypt have reportedly vanished and took off with 69,000 BTC. Largest Exit Scam ever? In April 2021, the two brothers who co-own the investment firm AfriCrypt, turned to their users, stating that the platform has been hacked, leading to a damage of 69,000 BTC, which were worth […]
The post Owners Of South African Investment Platform Vanish, Alongside 3.6 Billion USD Worth Of Bitcoin appeared first on CryptoCoin.News.
The owners of the South African crypto company AfriCrypt have reportedly vanished and took off with 69,000 BTC.
Largest Exit Scam ever?
In April 2021, the two brothers who co-own the investment firm AfriCrypt, turned to their users, stating that the platform has been hacked, leading to a damage of 69,000 BTC, which were worth 3.6 billions USD at that time. This claim has since then lost most of its credibility, since the brothers cannot be reached anymore.
The South African law firm Hanekom Attorneys, who handle the case on behalf of the victims, believe the incident to be an exit scam, rather than a hack. By their account, employees of AfriCrypt had already lost access to the platform’s backend seven days before the alleged hack. The fact that the owners of AfriCrypt urged investors not to take legal action made the law firm even more suspicious. If proven true, this would make AfriCrypt the largest exit scam in history.
10% Daily Return too good to be true
Reportedly, AfriCrypt attracted new investors by promising them a whopping return of 10% on a daily basis. Additionally, the investment firm promised referral rewards for bringing in more customers. Unrealistically high returns like this should automatically make anyone suspicious, but greed and FOMO drive investors into the arms of fraudulent investment companies and crypto projects.
For the scammers, this is a highly profitable business model, as can be seen by the example of the TRON blockchain. Besides gambling, TRON is notorious for “high risk” investment platforms that typically promise daily returns on the same scale as AfriCrypt, but pull an exit scam shortly after their scheme has gained enough traction.
The success of these fraudulent schemes is a result of the huge influx of new and inexperienced investors over the last months. Just recently, the UK-based Financial Conduct Authority warned against unregulated crypto companies, which operate in a legal grey market.
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The Bank for International Settlements Gives CBDCs Full Backing
The Bank for International Settlements (BIS) announced its full support for developing central bank digital currencies (CBDCs) in pursuing financial and monetary stability through international cooperation with the mandate and support by central banks. (Read More)
The Bank for International Settlements (BIS) announced its full support for developing central bank digital currencies (CBDCs) in pursuing financial and monetary stability through international cooperation with the mandate and support by central banks.
CBDCs are crucial in modernising finance
The BIS acknowledged that CBDCs must modernise finance and keep ‘Big Tech’ in check not to control money.
Benoit Coeure, a member of the BIS, warned:
“Without CBDCs, digital money would become increasingly dominated by big tech firms, as they would leverage enormous social media user bases.”
CBDCs are digital assets pegged to a real-world asset and backed by the central banks, meaning that they represent a claim against the bank exactly how banknotes work. Furthermore, they are blockchain-enabled, representing a new technology for issuing central bank money at the wholesale and retail level.
According to the announcement:
“As part of its upcoming annual report it estimated that at least 56 central banks and monetary authorities, representing around a fifth of the world’s population, are now looking at digital currencies as commerce shifts online.”
The issuance of CBDCs seems to be a race against time; many nations believe owning a CBDC is instrumental in having control of the global markets.
The Bahamas- the first nation to launch a CBDC
The Bahamas launched the Sand Dollar in October last year, making it the first country in the world to release a CBDC beyond the testing phase officially.
As more nations reveal their interest in CBDCs, the BIS noted that authorities would have to decide whether citizens require digital IDs to use them or choose the token-based route, making transactions more anonymous.
Once rolled out, CBDCs are expected to drive the financial inclusion of nearly 1.7 billion people left out of the banking system.
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