Even people who have never heard of Bitcoin noticed the uncontrollable screeching seeping through the walls of social media last week.

With Biden playing with the wheel of the US economy, the stock market has been pretty shaky, but the dips and chasms of Wall Street are nothing compared to annihilation of Bitcoin.

Personally, whenever I see cult-like creatures endlessly messaging about ‘how great something is’ and you should ‘definitely invest!’ I immediately assume it’s a pyramid scheme. When real investors are onto a good thing, they keep their mouths shut so that they can secure a bigger slice of the profit.

If someone is trying to ‘recruit’ it’s usually a huge red flag.

Well, now that one guy in the office who never shuts up about Bitcoin has gone quiet. Actually, someone should probably do a welfare check…

Nouriel Roubini, Crisis Economics author and Macro Associates CEO, unkindly tweeted:

‘Bitcoin now below 19k, a 72% crash from its all time high in November 2021. 1000s of other shitcoins have lost 99% of their value and disappeared. And even the other Top 10 “cryptocurrencies” have lost 80-90% of their value from their ATH. This Ponzi house of cards is collapsing.’

Harsh but correct. Cypto currencies are essentially a Ponzi scheme.

While businesses trading on the stock market are underpinned by physical assets that define value (that markets speculate on), Bitcoin and other Crypto currencies derive their value from how much they can get the next fool to buy it for. This is why they’re always sliding into DMs trying to get new converts to flood real money into the system.

Devout subscribers will go on and on about how cool and advanced Bitcoin is and that it isn’t really any different from the stock market, but the proof is in the – uh – crumbs.

Fundamentally, nothing of tangible worth is backing up the Crypto market so values can trend to zero. As this happens, the predominately Millennial investors watch their wallets (and sanity) evaporate in real time. For example, Luna cryptocurrency lost 97% of its value overnight causing a Reddit forum dedicated to Luna to post links to suicide prevention help lines – that’s how bad this has become, and that type of slide is UNHEARD of in the stock market.

Hidden in this disaster is the reality that real money went in, and real money went out – just not to the majority of users. Bitcoin investors attracted by the early-uptake huge profits of the digital paradise had to sell at the top of the market to win. Anyone who held on lost everything (despite the favorite war cry of Bitcoin being ‘hold!’). Economists describe it as the ‘Wild West’ because there is no transparency, no standards, and no recourse.

Luna buyer ‘No-Forever2056’ spoke to Fortune saying that they kept holding on after Luna reached $100. They have lost $17,000.

‘I really believed in the project and the builders in the ecosystem. I didn’t get out because I got greedy and hoped it would go up more. Well, now even if I want to get out, I can’t as all my Luna was locked staking. Do your own research. Always take profits and take your initial investment back as soon as you make it.’

Their story is tragic, but another user managed to lose $450,000.

After this catastrophic loss, the Crypto market is starting to wonder if it will ever recover. The stock market picks itself up because it is based on companies producing real goods and services which people have to buy, even when they are poor. Yes, it ‘resets’ capitalism, but it is a game that quickly up-scales itself back to workable levels.

With no genuine value in Crypto, what happens next?

This is especially difficult to answer as governments across the world start digging their claws in, either outright banning cryptocurrency, or rushing through laws to heavily regulate its use to the point that it loses any advantages (such as anonymity).

Weirdly, banks don’t like black market competition and the government likes an anonymous parallel economy even less.

El Salvador was one country that embraced Bitcoin with open arms, pouring $105 million taxpayer dollars in while making it the first in the world to legalize Bitcoin tender. The International Monetary Fund wasn’t particularly happy with this decision, and maybe they had a point.

That money is now worth $44.6 million, a 60% loss – and falling.

The President, Nayib Bukele, took to Twitter to give some advice to his panicking people.

‘I see that some people are worried or anxious about the #Bitcoin market price. My advice: stop looking at the graph and enjoy life. If you invested in #BTC your investment is safe and its value will immensely grow after the bear market. Patience is the key.’

His Finance Minister, Alejandro Zelaya, was equally calm.

‘When they tell me that the fiscal risk for El Salvador because of Bitcoin is really high, the only thing I can do is smile. The fiscal risk is extremely minimal.’

By ‘minimal’ Zelaya means he has only spent 0.5% of the general budget on it. One possibility is that ‘keep calm and ignore reality’ will work. The other is that Bukele gambled with public money and lost.

Social media is now awash with ‘I will give away Bitcoin to anyone who retweets this or follows’ messages. The only way their investment can be recovered is if they start the Ponzi scheme again and trick another round of fools into parting with their money and getting hooked on the gambler’s high of Cryptocurrency.

People are throwing money on the table, dreaming of luxury cars, yachts, and private jets.

The problem is, they’re playing in a dark room, with sun glasses on, and no idea who is sitting opposite.

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