The problem with crypto currency is that it has no material backing, unlike fiat currency which has gold & a national economy behind it. Whatever DCA (dollar cost average) you apply to crypto, it is simply a made-up value. Pegging it to the dollar, or backing it with Treasury notes (so-called “stable coins”) doesn’t add any real value to the crypto itself. In economics this is known as an asset bubble or a Ponzi scheme.
Only massive speculation by interested investors keeps the entire crypto market from going to zero. On top of this, there is massive energy waste that is unaccounted for with crypto. Eventually, all this fictitious capital will get wiped-out, and that’s where crypto is going. That is a Marxist assessment.
Everyone in the crypto industry now knows Elon Musk is the Bitcoin whale. That explains why he just backed-out of buying Twitter for $43B, after planning its takeover for months and putting it into motion. His supposed $240B is mostly a giant asset bubble, built on fictitious capital in the form of crypto currency. The rest of Elon Musk’s wealth is stolen from super-exploited workers. With what he owes to banks, he’s probably bankrupt when the crypto market implodes.
Tesla’s valuation is a joke, and SpaceX is a boondoggle. I lived in Central FL, so I know all about what goes on at Cape Canaveral. It’s always on the local news. NASA has been privatized and contracted to Elon Musk’s SpaceX. His mad vision is to colonize Mars and commercialize space travel, but the problem is Musk can’t get a reusable rocket to land without exploding. Billions & trillions of dollars are being wasted on all this, with no progress & no end in sight.
SpaceX controls many of the satellites which have communication & military value. This is how the class war is being fought. We’re talking about the supposed richest man in the world being bankrupt in terms of real value. There couldn’t be a more damning indictment of capitalism than that. Everyone one of these billionaire tyrants must be exposed as a fraud and their wealth expropriated for public use on an international scale.
This all started on Wednesday, May 11 and has been a panic since Thursday, May 12. This is Bitcoin as of this publication on Saturday:
Elon Musk now has to put all his cash into Bitcoin to weather the storm and eventually re-inflate the crypto bubble. That’s his plan. How much longer can Bitcoin hold out? That depends of Musk’s support in the market, with working class awareness & resistance looming on the other side. If investors still trust him with their money, then Bitcoin will be made to look legitimate again. If the money dries up, Musk is toast.
The tendency of fascism is to maintain any useful demagogues, in case a fuhrer is needed. Donald Trump & Elon Musk are of the same kind– ignorant, ego maniacal mad men. They both personify the madness of capitalism in its death throes, and must be dealt with by the working masses of the world in order to prevent nuclear annihilation.
This is the realpolitik being discussed by elites privately. Once they are completely defeated ideologically, the elites resort to provocation, intimation & outright violence. The Proud Boys, etc, are their right wing paramilitary forces which are to be unleashed upon the working masses to maintain this ruling class madness.
If Elon Musk’s wealth can’t be maintained as believable, then fascism must step in to crush the masses, because a crypto market crash will bring down the entire global financial system. The notoriously corrupt US-backed dictatorship of El Salvador just officially adopted cryptocurrency as legal tender. This crypto crash affects that rollout.
It’s now apparent to many that there are serious issues of legitimacy & sustainability with Bitcoin and the crypto market. How long can this fiction be maintained to the masses? That’s the question no one in the industry can answer.
Money managers bankers, hedge fund investors, etc, found a way to make a lot of money off of crypto in terms of fees, commissions, charges, etc; but nothing productive was ever made from it. It’s been such a horrible waste. It’s fool’s gold in cyberspace that produces even more global warming.
What happens when every nation goes to war and you can’t connect to the internet or grid because fascist forces in every country control all of them? What is Bitcoin worth then? These are questions to be considered as the entire US establishment led by the Democrats & Joe Biden provoke the Russia-Ukraine conflict, threatening a world wide conflagration which ends in mutually assured destruction.
People need to start thinking in these terms because this is what’s going on. The Coronavirus War is the war to prevent WW3. It can only be won by the international working masses united under the banner of Trotskyism. Read the World Socialist Web Site and become a member/supporter, etc.