Unbacked Currencies

Unbacked currencies are creations of the devil. By this, I mean that they are designed to trick or coerce people into parting with what has value in favor of that which doesn't.

The devil is clever, deceitful and manipulative. To the casual observer, he comes across as a smart and trustworthy guy. However, it does not require all that much thinking to reveal him for who he really is. What prevents us from seeing what should have been obvious from the start is usually greed and intellectual laziness.

The fact that fiat currencies come with a large number of laws, requiring people to accept them, is an immediate red flag. How can such currencies be good for us if they have to be forced upon us? They are quite clearly the work of the devil, but laziness and greed have most people accepting fiat as the way things are, a necessity in a modern society.

Unbacked crypto is deceptive in a similar manner. It too is seen as modern, and therefore progressive. Furthermore, it purports to be the antithesis of government fiat, when in reality it is merely an extension of the same mindset. It too has no intrinsic use. Unbacked cryptos, like fiat, are numbers pretending to be real things of value.

What is particularly revealing about unbacked crypto is that it does not hold what it promises. Such currencies are not limited, safe or secret. Nor are they assets with a value that can be stored. They are clunky energy consuming tokens that imitate some of the features of gold.

This has led crypto enthusiasts to change their narrative at several occasions. Every time they are unmasked as charlatans, they change their story. When it became clear that Bitcoin was impossible to use efficiently in commerce, Bitcoin went from being a currency to an asset. When this asset suddenly dropped by 80% in price, it was labeled a "speculative" asset, great for traders.

Then they spun the latest story about Bitcoin, namely that institutional buyers are now coming in in droves. However, the latest price action has revealed that this too is a lie. If pension funds and central banks were lining up to buy this asset, how could it drop by more than 10 % in a matter of minutes? Clearly, no large institution was ready to pick up the Bitcoin tokens that suddenly appeared for sale.

By Eliphas Levi - Eliphas Levi, Public Domain, Link