Who cares that BitCoin dropped 50% in 10 days. It has gone up 1,000% in the past 10 months!
This persuasive line is not specific to cryptocurrencies, but to any pyramid scheme. For the impatient and greedy, the statement reads like “get in now and join the party or miss out forever”. For anyone that stops and thinks about it critically, it tells you the truth in plain sight: those that enter the pyramid scheme early takes all the money from those that enter late.
It is a mass transfer of wealth from many to a few.
The persuasiveness is built in. Theoretically it is impossible to lose more than 100%. The dissuasive number X in the statement “down X% in Y days” is capped at 100. On the other hand, the sky’s the limit on the how much you can gain. The persuasive number X in the statement “up X% in Y days” has no cap, and in fact approaches infinity as Y approaches infinity, until the value of said instrument is zero.
In other words, this piece of propaganda works for any Ponzi scheme trying to reel in more suckers. People that entered BitCoin when it was $0.01/BTC have made out with 1,000,000% returns if they haven’t sold until now. But due to the zero-sum nature of the game, those returns had to have come at the expense of all the late-joiners who incorrectly expect a 1,000% return to occur on top of the 1,000,000% rise. If there was an endless stream of suckers willing to finance the scheme, it might actually go up another 1,000%. But since the required number of suckers grows exponentially to achieve what would be a total 1,000,000,000% return since inception, and since we have a finite number of people on Earth, eventually you will run out of suckers or the existing suckers run out of money (presumably having lost it all to finance the pioneers of these various get-rich-quick schemes).
You’d think after the number of bubbles and Ponzi schemes in history people would be able to see through the propaganda by now, yet here we are in the midst of some of the biggest bubbles that will clearly transfer the wealth of many to a few when they start to collapse.
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