LogFAQs > #978665690

GunmaN1905 posted...

I never understood how did banks that control everything allow crypto to spiral out of control.
For example, 10 of us in here decide we're creating a CEMEN currency and that from now on it's going to be worth $10k per 1 CEMEN. And everyone just accepts it? Like wtf?
That's what crypto is, pretty much. Creating money out of thin air.

Now I'm not saying that people shouldn't exploit idiots for easy money, but I kind of never understood how something that literally generates money out of nothing became so uncontrolled. Especially with how easy it is to evade taxes or even pay for illegal services with crypto.

This is basically no different then the stock market, except that with stocks there is technically some company or something you supposedly have a piece of. Not that you can go use that to claim ownership over, say, the factory machinery they have.

The value of said stock in said company doesn't reflect the actual value of what they have. It can and may well vary wildly. If something happens that makes the company need to liquidate itself, odds are you will lose money as its "value" skydives back to around whatever it can sell its stuff off for.

BTW, this is a slam against the stock market as well, not a defense of crypto. Look up the South Sea Bubble sometime.