Capitalists are once again hoarding Bitcoin and other cryptocurrencies. Yes, Bitcoin is back!
The notorious cryptocurrency reached a record high of $72,000 last month, on March 14, after tripling in value in the past year.
Other tokens have also benefited, such as Elon Musk's beloved Dogecoin, with an estimated value of more than $2.7 trillion for the first time in two years.
There's a lot of talk about the next icon going “to the moon.” However, like thin air, these so-called “digital assets” have no intrinsic value. All this trading is just speculation.
It's amazing to think that some people have become enormously wealthy because of these things. It brings to mind the “tulip mania” of the 17th century, and land speculation in Florida in the 1920s, where huge sums were won and lost.
So far, the crypto craze poses no obvious danger. However, it is clear that such tricks are an integral part of the capitalist system. Given the fragility and uncertainty of the global economy, the fallout from the bursting of these bubbles could cause broader damage in the real world.
Just speculation
There have been 11 Bitcoin-based exchange-traded funds approved by the SEC this year.
Major investors are involved, such as BlackRock, the world's largest asset management company. Some of the world's largest banks – Morgan Stanley, Wells Fargo and Bank of America – are preparing to participate. They want to “diversify” their assets, you see.
The experience of the 2007-2008 crash – and the solemn promise to avoid toxic, high-risk assets – appears to have been all but forgotten. Capitalists are like a drunkard who repeatedly vows, “Never again!” The next morning.
But why spoil the party? When an “asset” is valuable just because people think it is, the more believers the better!
The dichotomy between pure speculation and “sound” finance is beginning to break down again.
As one commentator on a Bitcoin-focused podcast The wolf of all the streets “TradFi is just as screwed up as the cryptocurrency community,” he recently stated.
This term refers to the following: “Traditional financial capital is just as reckless and decadent as the ‘cryptocurrency community’ of speculators” – and that is true.
Trump wins
Another stock that has attracted attention is Trump Media and Technology Group, which trades under the name “DJT.”
This is the owner of Donald Trump's struggling social media platform Truth Social. It became a public company after merging with a “blank check” company, known as “SPAC,” which acquires companies through mergers and acquisitions.
These shares attracted A Billions Its dollar valuation reaches several billion dollars in a single day, with its value rising by 56% when trading markets open. A few days later, the same shares fell by more than $1 billion. But Trump, as the majority shareholder, made billions from the deal.
The whole thing is a pyramid scheme. The company doesn't make any money. In fact, it loses a great deal of it. Its flagship product, Truth Social, is hemorrhaging users.
At this point, the company is worth around $5.7 billion, which means it's trading at an absurd price of 1,400 times its revenue!
A company trading at 10 or 20 times its revenue would be bad enough. 1400 times out of this world. It has no basis in reality.
But why let facts spoil a good story? Reality doesn't matter: what matters is the “feeling” or “feelings” – just like Bitcoin, which has no intrinsic value.
Casino capitalism
Speculation, parasitism, and gambling have always been an essential feature of capitalism – another indicator of the corruption of the system.
However, it is not only technology investors who will lose at this casino. Given the instability of the global economy and global financial system, such recklessness could lead to the collapse of the entire house.
