If there are ‘gods’, I imagine they had a good laugh yesterday. Bernie Madoff died in prison on exactly the day that shares in Conbase began trading at a 50% increase over their guide price.
Whoops – one of my frequent typos – I meant Coinbase.
There is in logical terms very little difference between a so-called Ponzi scheme and use of blockchain to represent monetary value. The structure of blockchain is a technological advancement that will have plenty of applications, but its use does not turn electricity into money, contrary to widely held opinions, other than for those who ‘mine’ when the price is higher than the manufacturing cost (nothing new there).
What makes money for cryptocurrency traders is the arrival of more people wanting to buy and a very manageable low level of sales. That is the basis of every get rich quick scheme and indeed the valuation of works of art, classic cars, fine wines, stamp collections and so, although with the physical assets there may be some actual pleasure of ownership over and above boasting to your mates at the pub.
Many people made lots of money with Bernie Madoff. If events had not prompted rather too many to ask for their money back, Mr Madoff would likely have died a happy billionaire, not in prison.
Lets hope that there is never a flood of cryptocurrency investors asking for their money back all at once. Who would get sent to prison then?
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