Cryptocurrency a trick to make the poor speculate!  And make them poorer?

Cryptocurrency a trick to make the poor speculate! And make them poorer?

The economist Michel Santi delivers a merciless charge against cryptocurrencies in a column entitled “Crash of cryptocurrencies: speculation for the poor”!

For him, they have nothing to do with currencies, even if the universal craze and lure of profit adorn them with the flattering qualifier of “cryptocurrencies”, in an attempt doomed in advance to failure to give them credibility and attract customers” .

It is indeed necessary to have both the heart and the stomach well hung to pretend to treat and exchange such currencies with incredible volatility. They are, in reality, only an instrument – ​​yet another – of pure speculation offering zero intrinsic value!

Buy a property and you will still have it if the market were to deteriorate. Buy a stock on the stock market and you’ll still own part of the business if the market crashes. Buy bitcoins and you will just have to throw your computer in the trash if its value were to liquefy (as is currently the case) because this thing is only a piece of code which you cannot strictly do nothing and someone else at the end of the pyramid had the good idea to sell you.

This generalized hysteria in fact tells a banal story that has been experienced many times. It reflects a collective contagion that has inflated in the past the valuation of assets much more tangible than a cryptocurrency – as ephemeral as a summer love – but just as banal as the game of musical chairs where places are limited and whose only those who sell first get away with it.

This market – which today is worth a few trillions of dollars and euros less for having already largely devalued in recent months – is only worth it thanks to other players who agree to push higher and further. the “schmilblick”.

More serious – much more worrying and sadder too: crypto thrived on a breeding ground of young and precarious speculators and investors who could not afford to invest in the stock market or in real estate, which was too expensive for them. Let us be realistic and honest: in an environment where the new generations are much worse off than their elders, in a context where it seems so easy to win by speculating thanks to the total deregulation and liberalization of capital flows, the crypto has sold dreams to young people, who have found in it an ideal way to stand out from the elders. In a world where inequalities are aberrant, where the vast majority of young people around the world are now the new poor, the one and only weapon available to this caste of untouchables allowing them to distinguish themselves was crypto, which was able to time to convince them that they would follow in the footsteps of the rich and powerful, incidentally using an avant-garde instrument”.

He is objectively not wrong when he talks about young people who are not necessarily wealthy who have seen in cryptos the way to make easy money in a sector that “they understood” because they were modern, compared to the old ones like me who never understood the beauty of the thing.

It must be said that old people like me were young yesterday, who found that all those who did not see the brilliant side of the Internet understood nothing about modernity.

I lost in the Internet bubble all my feathers of young “investors”.

In reality everyone was right.

Old people who said it was rubbish and young people like me who said the Internet would change the world.

But it took more than 20 years for that to happen.

For cryptocurrencies and blockchain technology it will probably be the same.

Everyone will be right at different times.

The speculative bubble will burst and ruin millions of naïve young people across the planet.

Then the mature technology will find its applications which will undoubtedly revolutionize our way of living, working and contracting.

But it will take 20 years and a lot of “blood”!

Charles SANNAT

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