As an outside observer, who has no crypto holdings at all, but is very deeply invested in the public stock market with a heavy weight on technology stocks... this doesn't look like a crash to me at all. It just looks like some steam being let off and old investors cash out and new investors get more comfortable with how much and where to invest. I consider crypto currency as it is to be an elaborate Ponzi scheme (per…
if crypto is a ponzi scheme, then isn't cash also a ponzi scheme? cash can become just as worthless, when no one believes in it anymore, just ask zimbabwae. personally, if i'm going to be in a ponzi scheme, at the very least I want something with a limited supply. Also, what other option do we have for store of value? Equities are way overvalued beyond reason. Fixed income/cash are becoming worthless very quickly. re…
That's not how it works. You need to destroy the local economy first. For example, repossessing land of productive farmers and shutting farms down causes famines. If the local economy wasn't destroyed people would rush and start exporting their local products to markets that actually value them. You would end up with a lot of inflation but not Zimbabwe levels.
I recently read up on Venezuelan capital controls and honestly the only thing that came to my mind is that the politicians there want to destroy the currency as much as possible as if a functioning currency were the spawn of Satan that must be prevented at all costs. I'm personally surprised it takes that much to destroy a currency. You pretty much have to be actively evil to get to Venezuela levels.
Given enough care currencies can recover from pretty much anything as long as the local economy stays alive and relationships with foreign countries are being maintained. The only thing that cannot be recovered is the lost potential and time of all the individuals that make up the country.