It looks like that some magically my cry about “crypto undervaluing” has been heard and addressed.
“My NEW Official Trump Meme is HERE! It’s time to celebrate everything we stand for: WINNING!” (D.Trump)
“WINNING” – just curious – for whom?
Searching Internet you can find meme coins definition which sounds a little bit strange and controversial: “A meme coin (also spelled memecoin) is a cryptocurrency that originated from an Internet meme or has some other humorous characteristic.” Wow.. Is it just the other humorous characteristic of D.Trump or however something more.
So, I’ve asked myself – what is really “crypto” about?
After some contemplation and research I’ve realized how much philosophy and psychology are there.
For example, when you are buying the shares or some bank / government securities you always assume that you are getting some “portion” of something very valuable that could finally materialize in some products produced, lands and the other property owned and people living and producing there very useful and important that others love to have.
Buying foreign currency is more tricky – for me it’s like evaluating the capabilities of the other counties against my country in producing valuable things including labor. I remember my first realization of that living in ussr where at that time ruble’s official rate was 0.71 rubles = 1 USD but on the black market it was 5-6 rubles for one dollar and if you would be caught with 100 USD in the pocket you would get five years imprisonment at least. Probably, by such way our communist dictators tried to convince us that we were living in the very powerful and prosperous country, and for them it was and I had no doubts of that, but not for us because we mysteriously knew that for dollars we could buy much better life. .. And still can. .. And I remember how quickly even old ladies on the farmer and flee markets started to except dollars after ussr crash in 1992 when ruble became just a “paper” which it always had been but we had been so suppressed by dictatorship laws and blinded by communist propaganda that we were not seeing this.
Dollar have been as some insight and believe that America is there and will be there and is doing fine and will be doing fine.
The same can be applied to pounds, euros and the other currencies which we name “hard currency”.
But why does we have such ideas? Does it somehow relate to the believes that those “hard currency” societies are more stable in long-term prospective rather than those with “soft” currencies?
Anyway .. Coming back to crypto I’m really curious of what really people know or believe in when they are buying some virtual records, named “bitcoin” or “$TRUMP” / “$Melania” in a spread databases with the magic name of “blockchain”. The only answer I can elaborate that they believe in selling those records on a higher price in some future buying more valuable things than they could not afford at the beginning in any place that allows conversion of those records into real money or accepting those records as a payment.
But, what is backing those records today except people that exchange their currencies from their bank accounts on those records, and, probably, some actors who agree to exchange some real merchandise on those records, and some banks, that are cashing those records. The only way for all of them to increase the value of those records is to lure more and more buyers convincing them that is it much better and reliable way to gain than playing virtual casino or lotteries, for example. It’s really interesting that despite the chance of winning in gambling is very low, millions of people are loosing billions of dollars every year. Why? .. probably because time to time some lucky winners are presented to the public and the losers regain their hope of becoming lucky one day too.
Maybe that is why, there are so many noisy words about crypto market prices, how reliably records are kept, what a complicated math algorithms are used in “mining” new coins and determining their prices. At the same time, more than $2.2 billion have been stolen in 2024, $1.7 billion stolen in 2023 and $3.8 billion stolen in 2022 and you need to wait years in courts for reimbursements.
I read interesting article about 2016 hack case on Reuters and, what I really “like” is that :
and that:
In this case the thieves are living in USA and have been arrested there but what if they are living in Russia, Iran, China or North Korea and working under those countries authorities supervision? Will you recover something then?
I also like the words “coin mining” and its description as “the process by which networks of specialized computers generate and release new Bitcoin and verify new transactions”. Sounds really something but I’m just curious why all those smart algorithms make those, who posses and run them, to gain something and most of those, who use them, to lose something ?
Transaction fees, cash out fees, entering fees, what ever fees – more users , more activity -> bigger fees .. while you are sitting and waiting your momentum of others joining and increasing your asset, those smart guys not only have got your cash but also charged you for that without all bank’s guarantee burdens and interest returns.
From another hand current reality is that crypto much better than offshore accounts suits different kind of criminal activities like tax evasion, drugs money and laundering due to its much less regulations and transactions traceability in comparison with the banks.
It could be really funny if some drug mobs invest in “$TRUMP” / “$Melania” .. what and whom bomb in such case.. but I’m sure D.Trump will find the answer easily.
Make Memes great again !