#Bitcoin is currently functioning how markets are supposed to work.
A bunch of dodos raised a large amount of fiat which they used to purchase #bitcoin. They then leveraged those holdings in mal-investment ponzis which led to a sweeping liquidation cascade as...
A bunch of dodos raised a large amount of fiat which they used to purchase #bitcoin. They then leveraged those holdings in mal-investment ponzis which led to a sweeping liquidation cascade as...
the credit market contracted.
The capital of the leveraged mal-investment ponzis is now liquidating at a discount and 3rd parties come in and buy up their Bitcoin.
The capital of the leveraged mal-investment ponzis is now liquidating at a discount and 3rd parties come in and buy up their Bitcoin.
The purchasing power of bitcoin goes down when this happens because malinvestment destroys previously accumulated capital.
This is why a market based system is superior to our current form of monetary socialism.
This is why a market based system is superior to our current form of monetary socialism.
A market based system ensures that capital flows from the unproductive to the productive and limits malinvestment by harshly punishing participants.
It hurts because it's supposed to hurt.
Fiat dampens the implications of malinvestment in such a way that it's harder to notice.
It hurts because it's supposed to hurt.
Fiat dampens the implications of malinvestment in such a way that it's harder to notice.
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