PREVIEW: The Great Crypto Illusion – Fantasy Masks A Looming Meltdown
With a view to helping us understand Trump’s latest passion, I am reviewing here a book by JA Engelbrecht called “The Great Crypto Illusion: Unmasking the Industry’s Dirty Secrets.” Engelbrecht is the CEO of a tech investment company, a former fund manager and stockbroker, and a seasoned financial expert.
Trump is none of those things — but it has not stopped him from Pronouncements. He was a one-time crypto critic who warned that digital assets were “based on thin air”, who has had an about-face and is now an enthusiastic backer and champion of digital currency. He has pledged to make America “the crypto capital of the world” and he seeks to bring about a marked change for the industry in the US.
The jaded among us see instead a person whose pro-crypto view stems from pure self-interest. His recent ventures such as World Liberty Financial, $TRUMP and $MELANIA reveal systematic market manipulation instead of political support.
Right there, you know that support from Trump will be a bad move. Praise from anyone who has gone bankrupt six times is a curse.
And we are indeed on the edge of a financial catastrophe, according to Robert Reich, former Commerce Secretary and best-selling author. A global stock selloff is extending, the longest losing streak in almost two years, says Bloomberg. Reich points out that the U.S. economy’s performance in the second quarter — April to June — revealed serious strains. Exports fell and consumer spending slowed down. He warned about the Signs:
“The financial economy is immersed in the kind of wild gambling we saw leading up to the 2008 financial crisis. We’re seeing it all over again — this time with cryptocurrency tokens…”
FYI, the Jobs Report was so bad that Trump is threatening to fire the US Labor Statistics Commissioner because he reported the numbers…numbers caused by Trump’s policies.
He would probably fire the guy who reported the hole in the Titanic…while climbing into a lifeboat.
Crypto started recently, with Satoshi Nakamoto’s original whitepaper titled “Bitcoin : A Peer-to-Peer Electronic Cash System,” published on October 31, 2008. Now, crypto feels like a gold rush.
The original Bitcoin White Paper
Bitcoin is selling today at $115,000 – though that number is volatile.
Crypto’s objective is to create a decentralized currency that can operate outside the constraints of government influence and financial institutions. It works by creating a ‘virtual’ currency that is secured by cryptography and distributed across many networks.
Its ability to sidestep traditional financial institutions has gained it a reputation as “digital gold.”
But bitcoin is not merely a commodity to be traded; it is the embodiment of a philosophy that sought to decentralize power and financial control.
Now it has evolved to become The Next Big Thing, driven by the human “Fear of Missing Out (FOMO):’ — an emotional trigger that makes investors dive headfirst into the volatile waters of digital currencies.
The emotional landscape of FOMO is further compounded by the archetype of the “whale” — investors who hold significant amounts of cryptocurrency and often have the power to sway markets.
Beneath the glossy surface lies a tumultuous world of price spikes, devastating crashes, and manipulation that at times feels more akin to a high-stakes gambling game than a sound financial system.
In the early days, Bitcoin was heralded as a revolutionary currency, its very essence wrapped in the ideals of decentralization and freedom from traditional financial systems.
Then it started to fall victim to ‘pump-and-dump’ schemes. In these schemes, the initial promoters would artificially inflate the price of a token before selling off their holdings, leaving unsuspecting investors holding worthless assets…
Thank you for following Barry’s Substack, focusing on the meaning behind the headlines. Each week a summary of a topical book helps full subscribers stay ahead of the conversation.
Next week will be THE NEXT CIVIL WAR: Dispatches from the American Future
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Sorry, didn't read this Barry because I'm not going anywhere near this junk. It's all fake. Anything djt invests so heavily in is something everyone should stay as far away from as possible. Think of his stupid non fungible image cards. Worthless digital junk. No one in their right mind should give that a second thought. Like Melania's biography - fake, worthless junk for those who are easily separated from their money.
I love your reference to FOMO! I see that emotion every day while watching the behavior of several friends, whose calendars are filled with attendance at events and in investments driven by FOMO.
My FOMO friends are affluent enough to afford tickets (with the expense often with seat license fees inn addition to the ticket prices). It is FOMO that draws in the rubes, who can’t afford their purchases, but can’t resist spending because they must feed the FOMO beast that lives within.