{"id":325055,"date":"2022-11-14T17:20:10","date_gmt":"2022-11-14T22:20:10","guid":{"rendered":"https:\/\/www.sgtreport.com\/?p=325055"},"modified":"2022-11-14T00:39:51","modified_gmt":"2022-11-14T05:39:51","slug":"on-ftx-and-crypto-generally","status":"publish","type":"post","link":"https:\/\/www.sgtreport.com\/2022\/11\/on-ftx-and-crypto-generally\/","title":{"rendered":"On FTX And Crypto Generally"},"content":{"rendered":"

by Karl Denninger, Market Ticker<\/a>:<\/em><\/p>\n

\"\"<\/p>\n

It’s really not very complicated when you get down to it.<\/p>\n

First,\u00a0all\u00a0<\/em>items in an economy respond to supply and demand.\u00a0 If there is zero demand there will be zero supply and thus no price.\u00a0 But for any amount of demand above zero there is a price, and to the extent demand exceeds supply price rises until equilibrium is established, either by it simply costing more or additional supply showing up as there’s incentive to provide it.\u00a0 The opposite is also true.<\/p>\n

TRUTH LIVES on at\u00a0https:\/\/sgtreport.tv\/<\/a><\/p>\n

The problem with so-called\u00a0cryptocurrencies\u00a0<\/em>is that they have zero inherent value of any sort.\u00a0 That is, the fact that I can solve a mathematical problem and prove I did through a cryptographic signature doesn’t have value; there is no utility, per-se, in doing that.\u00a0 Leaving aside that\u00a0all\u00a0<\/em>such designs are inherently and intentionally ponzi schemes (that is, the “founders” always get the first of whatever it is at zero cost or nearly zero, then sell them to others at ever-higher prices)\u00a0if anyone can use leverage without prior disclosure\u00a0and thus become an emitter of credit into the stream<\/em><\/strong>\u00a0they can move the price in\u00a0either direction\u00a0<\/em>on command.<\/p>\n

Of course\u00a0their benefit\u00a0<\/em>and thus, for most, their motivation, is to move it higher.<\/p>\n

But what if there the alleged “dollar” exchanged and thus which set the demand level\u00a0doesn’t actually exist?<\/em><\/strong><\/p>\n

If I can take a customer’s “funds” and blow them on something else\u00a0then until and unless I am forced to immediately remove that from the so-called “cryptomarket” where it was\u00a0I have in fact emitted more dollars in the context of the cryptocurrency.<\/strong><\/em>\u00a0 The problem at its core is that I had no legitimate way to do that\u00a0and thus the alleged “demand” — and price response to it — is a fraud.<\/em>\u00a0 In the United States banks have an allegedly limited license to do this, that is, it is legitimate, and so does Congress through deficit spending.<\/p>\n

Nobody else, however, holds the power to do so in a legal fashion yet the common theme is that it keeps being exposed<\/strong>.<\/p>\n

You must therefore assume that\u00a0all\u00a0<\/strong><\/em>of the alleged “value” of said crypto “assets”\u00a0is in fact nothing more than smoke.<\/strong><\/em><\/p>\n

Why?<\/p>\n

Because if it was possible to make a reasonable return running an exchange without doing this — that is, the fees charged for the service covered costs plus a profit — then\u00a0those doing it legitimately would be VERY interested in finding and outing every scam immediately<\/strong><\/em>.\u00a0 The reason for that is obvious:\u00a0The scammer operates with what amounts to a digital printing press and the non-scammer does not; ergo the honest operator cannot compete in such a market as they will always lose to the scammer.<\/em><\/p>\n

The facts, however, are that the so-called “mainstream” exchanges are\u00a0not<\/strong>\u00a0diligently looking for and exposing the frauds\u00a0and the reason why not is transparent:\u00a0They profit from it too even if they don’t personally engage in it.<\/em><\/p>\n

But if you profit from a scam\u00a0even if you don’t engage in it\u00a0<\/em>then you must expect that there will always\u00a0be<\/strong>\u00a0said scam and worse, since during the time it is unexposed there’s nobody interested in stopping it there is no pushback to put a stop to it\u00a0and in fact that takes over as the largest, if not the\u00a0only<\/strong>\u00a0mechanism by which price actually moves.<\/em><\/p>\n

Read More @ Market-Ticker.org<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

by Karl Denninger, Market Ticker: It’s really not very complicated when you get down to it. First,\u00a0all\u00a0items in an economy respond to supply and demand.\u00a0 If there is zero demand there will be zero supply and thus no price.\u00a0 But for any amount of demand above zero there is a price, and to the extent […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[142192],"_links":{"self":[{"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/posts\/325055"}],"collection":[{"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/comments?post=325055"}],"version-history":[{"count":0,"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/posts\/325055\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/media?parent=325055"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/categories?post=325055"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/tags?post=325055"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}