Trump 100% right about Bitcoin scam

See the latest Australian dollar analysis here:

Macro Morning

More Bitcoin voodoo today. What does it say when Donald Trump becomes the voice of reason?

He went on to say that it ought to be “highly regulated”.

Outlawed is my preference. It’s nothing more than a worthless private currency swindle made on the principles of regulatory arbitrage.

Meanwhile, we get more voodoo:

The world’s largest digital currency has slumped, pushing its average price over the last 50 days close to its 200-day moving average. Should the short-term line cross below the long-term one, the coin would reach the forbidding formation. The indicator is typically seen as a closely-watched technical measure that could offer a hint at more pain to come.

Honestly, how did humanity come to this impasse of an absolute waste of everybody’s time and money?

Just ban it already.

Houses and Holes
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  1. reusachtigeMEMBER

    The best investment for long term gains that is not a scam is Sydney property

  2. Surely BTC has its place? It’s basically a fine idea. I like it, and similar cryptos.

    It’s just that people getting rich from buying and selling it, to the degree they have, is ridiculous – totally detached from the reasonable for what is supposed to be just another currency.

      • pfh007.comMEMBER

        Try telling that to the banks and the RBA.

        They reckon a public money supply consisting of over 95% of money created by private banks to be perfectly fine.

        Once the private banks start issuing cryptos (in conjunction with the central banks) all the crypto haters will suddenly think it is the best thing since sliced bread.

    • It facilitates crime. I am delighted some governments are learning how to hack it, as has just occurred with the recovery of some (most?) of the Colonial Pipeline ransom.

      • I'll have anotherMEMBER

        1. It wasn’t hacked. The FBI absconded a private server where the keys were stored. If they could hack encrypted wallets they must have super AI quantum computing that could also hack the nuclear codes, state secrets and your bank account. This is simply unfactual.

        2. Fiat also facilitates crime and is much easier to forge.

        • You think a quantum computer is required to break SHA-256 (or SHA-2 hash functions generally)?
          Tell me, who created SHA-256?

  3. If you banned every product that was stupid, you would wipeout manufacturing globally.
    I thought the idea was always to sell to idiots?

  4. Perhaps taxing the profits is the best way to start management of crypto currencies. Surely there’s large capital gains for debt plagued governments to harvest.

    • I’m sure if we tried we would end up with the losers claiming huge capital losses and the winners not reporting to the ATO.

    • brett sensman

      Australia has applied CGT to crypto for years.
      Started around 2017 from memory.
      They’ve sent out threatening letters about declaring it for at least the last 2 years.

  5. pfh007.comMEMBER

    “..Honestly, how did humanity come to this impasse of an absolute waste of everybody’s time and money?..”

    It is pretty obvious.

    A total failure on the part of mainstream western economists and commentators to ask why we should tolerate a private money cartel enjoying an effective monopoly of the public monetary system.

    Which is ironic considering most of them claim to be “liberal market types” and normally talk long and loud about ending rent seeking and other instances of market rigging and protection.

    Private bank created money is no better than crypto. It is just a private money system.

    The only difference is that the state provides protection and public backing to the private money created by private banks.

    If a few more economists and commentators spent some time attacking and demanding reform of the broken and dysfunctional private bank monopoly of the RBA we would probably find the interest in crypto (other alternatives, e.g. gold to the bank pseudo fiat model) would be reduced greatly.

    • ashentegraMEMBER

      Bitcoin is driven by the gains available in private seigniorage.

      I see no explanation why dills are prepared to buy into this foolishness.

      “Two things are infinite: the universe and human stupidity; and I’m not sure about the universe.” ― Albert Einstein

    • Spot on 007. I am sick of this total BS. The corruption you see is extant in the gold and silver markets futures market every time Wall Street opens.

    • brett sensman

      It wasn’t even the real point,
      The main point was that he wants the USD to be the one world currency.
      AUD to be replaced by usd soon in australia?

      • ashentegraMEMBER

        This (Brett’s) ranks as one of the most inane comments I have ever seen on MacroBusiness.

        Howls of derisive laughter.

        • brett sensman

          Trumps EXACT words.
          “I don’t like it because it’s another currency competing against the dollar… I want the dollar to be the currency of the world.”

      • Trump is an opportunist. Nothing he stands for is because its the best for everyone or country, its for him.

  6. Ghost of Stewie Griffin

    They won’t ban it, they’re just waiting for the last skerics of real liquidity to evaporate from the system before it implodes. Once the price dips below $24k it will activate Michael Saylor’s BTC Doomsday machine.

  7. Bitcoin has just this moment become the legal tender of El Salvador. Make of that what you will but Bitcoin is now a foreign currency.

    • blacktwin997MEMBER

      Well El Salvador has an economic complexity ranking of 53 vs 87 for Australia so we should definitely adopt it too if we want to shoot up the charts! We sit just behind the economic powerhouses of Namibia, Guatemala, Botswana, Uganda and Mali just to name a few.

      Mind you this is from 2018 so likely we’re lower ranked by now.

    • brett sensman

      Also interesting that their current currency is USD, so looking to replace it?

  8. I am diamond hands and I am HODL. You can’t ban it, it’s like saying you’ll ban the Internet. The whole point of crypto and cold wallets is that Governments cannot over reach and take it from you. Can they try ban it? Sure like China is trying to, but other countries like El Salvador will support it and so what does that mean then? You gonna go ban other countries too?

    • buttzilla rampage

      why ban what can’t be spent or turned into sovereign currency? why ban nothing?

    • If you are going to say ban Bitcoin, then I want you, MB, to describe exactly how you are going to ban it. Otherwise, you are just spouting silly nonsense. Maybe next you are going to say that internet porn needs to be banned. Basically the same concept.

      So maybe after you realize you can’t ban it, maybe you might want to do some proper analysis to see where it is going to end up. Or is that all too hard?

      • Even StevenMEMBER

        Mike: It wouldn’t take much. I would suggest a good start to banning Bitcoin would be:
        1. Instructing banks that they cannot accept AUD proceeds from Bitcoin trades. Banks already have AML/CTF obligations (regulated by AUSTRAC) which includes obligations to understand source of funds above certain thresholds. This would of course also disconnect any Bitcoin exchanges from the banking system.
        2. Prohibit any trading in Bitcoin by all individuals and companies, including imposing penalties on accountants, lawyers, realtors etc including loss of license.

        And with those two things only, it is pretty much cooked.

        • OK, now try to implement that in every country in the world all at once.

          And second of all, why are some of you people so eager to bring government force down on the top of the heads of people who are freely and non-violently trading. Particularly, in developing countries that have a high or hyper-inflation where Bitcoin is a godsend to many. A way to hold onto their hard-earned wealth. As well as a way to transmit money to family members from other countries without being raped by the money transmitter middle men.

          Authoritarian much bro? The CCP needs good men like you.

          • Even StevenMEMBER

            Mike: I have no particular view on Bitcoin per se. But for the average punter who may not understand the risks, it is DANGEROUS precisely because governments CAN crush it fairly easily, if they wanted. It’s not what I want, but rather what I think will happen.

            Because of this threshold where governments will forcibly intervene, there is an argument Bitcoin is a waste of time, energy, a distraction.

      • Shut down the exchanges.
        Without being able to convert your “butts” (bitcoin) back into fiat after number has gone up it’s completely useless.

        • Yup the entire Bitcoin network is incapable of doing more than 10 transactions per second. Almost all transactions are done off-chain by exchanges in boring old databases. Make this illegal, and Bitcoin would be nothing more than a curiosity with its frankly pathetic transaction rate.

          I dun’t think it should be banned though. I want China to force the miners in their jurisdiction to 51% attack it, and double spend like crazy. Good luck sorting out that mess!

  9. Things are changing with or without Cryptocurrency, how likely is it that USD will remain the global reserve currency?
    How much thought is based around the current premise that it is? That is the wasted energy.

    Why ban something? if it has no merit let the market decide. The dollars in Crypto would only show up in other overinflated assets anyway i.e. The same location that your foregone Super would end up. Residential Housing.

  10. Well, 53 days left on my sub and then you won’t ever have to hear from me again.

    Such a pity that you railed against the biggest monetary revolution in centuries like a bunch of dinosaurs standing around wondering what the bright light in the sky was.

    • Even StevenMEMBER

      You sound a little biased, Mike. If your view of reality can’t hold up to some challenge, well….

      THE key principle of investment is diversification. Hope you are not too deep into BTC.

  11. I'll have anotherMEMBER

    DLS, like it or not, crypto will certainly replace current banking systems. The efficiencies of an unregulated system are enormous.

    You are on the wrong side of history with this one mate.

    • Even StevenMEMBER

      No, you’re on the wrong side of history, mate. See what I did there?

      Governments will crush a currency they can’t control. Unless it remains irrelevant.

  12. I’m going to move to El Salvador with Mig, and drive my Lambo around while wearing my diamond hands shirt, twenty diamond rings, and 4 rolexes. It will become the richest country in the world because of full tax free convertability between BTC and USD. The rivers of wealth flowing into El Salvador cannot be stopped!

    Nothing can go wrong with this plan.

  13. Well, Trump hates it, as a progressive isn’t your only option to go long? if you’re not anti Trump you’re pro Trump and therefore by extension a currency bigot….. so what’s it going to be fascist, USD or BTC?