Attention Economy


Friday, January 28, 2022

Cryptos and Meme Stocks

It’s Hard to Tell When the Crypto Bubble Will Burst, or If There Is One
https://www.nytimes.com/2022/01/27/business/crypto-price-bubble.html 
The Case for ‘Digital Gold’ Unravels as Bitcoin’s Plunge Deepens
Why bitcoin is worse than a Madoff-style Ponzi scheme
Crypto Diehards Are About to Find Out If It Really Was a Bubble

History is clear on the story of money: Nation-states have limited patience for private competition and a whole lot of power.
https://www.bloomberg.com/opinion/articles/2021-11-04/currency-history-regulation-and-crypto-s-future
Stephen Mihm notes:
“The story of money can be told in many ways, but one perennial conflict is the struggle over who, precisely, enjoys the right to make money. Throughout much of human history, governments of all kinds have often laid claim to this prerogative, while tolerating plenty of competition: coins from other countries, private tokens and other forms of currency.
That changed in the late 18th century, when the rise of modern nation-states went hand in hand with monopolization of money. No matter how well private currencies performed their job, they almost inevitably ran afoul of the authorities”.
 
My take:
https://thehill.com/opinion/finance/554998-is-bitcoin-the-future-of-money
Major fiat currencies, in fact, have some derived “intrinsic value” due to their status as legal tenders — they are backed by the full faith and power of stable national governments and supported by an elaborate and sophisticated regulatory and financial system. 

 
Meme Investors Learn the Hard Way: The House Always Wins
https://www.bloomberg.com/opinion/articles/2022-01-25/crypto-meme-investors-learn-the-house-always-wins
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