“We are making $500 million a day,” says Michael Saylor, CEO of MicroStrategy, on CNBC.
But this is typical scam language. When you hold a large position on a volatile asset, it cuts both ways. For example, if one holds $10 billion worth of the asset, you make $500 million a day when the price goes up 5% on that day. But you also lose $500 million a day if the price drops 5%. This is true for any volatile asset, including BTC.
However, BTC’s even bigger problem is that it’s not even a regular volatile asset. BTC is a distorted version of the true Bitcoin. Its price is a result of a Ponzi scheme and, worse, a Stock Market Amplified Ponzi scheme (SMAP) because it is not based on any utility or economic fundamentals.
Satoshi designed the real Bitcoin as electronic cash. But BTC cut all Bitcoin utilities and promoted itself as “digital gold”.
Due to the power of clever narratives that take advantage of both illusionary imaginations and fanned-up greed and are promoted by the clueless media, BTC has gained a market cap of over $2 trillion. It thus qualifies as an extraordinary Ponzi scheme, but it is definitely still within the boundaries of Ponzi economics and Ponzi psychology. BTC accounts for only 0.4% of the global wealth, which stands close to $500 trillion.
Some are already arguing that BTC is too big to fall, but they will have to wait to see how it falls. When it does, it will fall in an avalanche fashion because it does not have any economic foundation. It’s all driven by psychological power amplifying itself on a circular logic that has no substance.
Not only that, but when BTC falls, it will have no serious negative impact on the global economy as it offers no benefit or utility to the global economy in the first place. On the contrary, it will have a positive impact because the fall of an imposter will unleash the innovative power of the real Bitcoin blockchain. See The Difference between BTC and the Real Bitcoin.
BTC is not digital gold. Calling it ‘gold’ doesn’t make it so. There are fundamental differences between physical gold and the so-called digital gold. See The Idea of “Digital Gold” — BTC’s Value Fundamentals.