I fully understand where you are coming from, and I don't take it personally.Miopyk wrote: ↑Thu Dec 30, 2021 3:42 pm Bazza, I really wasn't having a pop at you but to date no one I've asked has been able to answer the questions I asked you.
In short my view is that Crypto currencies could be considered an everlasting Ponzi scheme. My simplified reasoning is this:
1. I put a pound Stirling into a Crypto currency and I get 1 Crypto coin back. So £1 = CR1
2. Someone somewhere declares the value of my CR1 has increased to £1 = CR2. I tell 10 of my friends and family about my success and they all buy CR1 for £2
3. Someone somewhere declares the value of CR has decreased to £1 = CR1.50.
4. Someone somewhere takes a profit of CR.50 x 10 = £5.00
5. 10 friends and family keep quiet because its a long term investment and things will improve.
6. Someone somewhere declares the value of CR is now £1 = CR2.50. 10 friends and family tell 10 friends and family how well they are doing and they all invest £1
7. I've done very well and decide to withdraw my original investment while keeping my CR1.5 invested and singing the praises of CR which encourages another 100 people to invest £1.
8. Someone somewhere declares the value of CR has dropped to £1 = CR2
9. Someone somewhere takes a big profit
10. Repeat steps 1-9
In short a Ponzi scheme, unless someone somewhere can tell me why it isn't
As I said in a previous post, I'm certainly not an expert in this field.
Your example above, is something I have seen over and again, not just in crypto but in the stock market too, in particular the AIM market.
In the year 2000, tech stocks were going through the roof on the back of nothing other than they are going to be the next best thing.
Ramping of shares took place not just within online forums, but in newspapers and on TV.
Between 1999 - 2000 there was a daily show called Show Me The Money. It covered many very small cap shares and their value would soar, only to come down with a bump when those already invested bailed out.
I'm not suggesting there was intention to cover the shares they did, but rumours did surface.
Sorry that I couldn't give you any greater clarity on your questions.