Argentine President Javier Milei is facing impeachment calls - and legal action accusing him of fraud - over his promotion of cryptocurrency on social media.

  • sumguyonline@lemmy.world
    link
    fedilink
    English
    arrow-up
    14
    arrow-down
    3
    ·
    edit-2
    4 days ago

    The problem with any currency in our current state is 2 fold:

    1. The people that already have too many assets can simply buy a bunch of the currency and fuck with it. Roller coaster that shit.

    2. A small group of dedicated individuals with a large sum of money together could perform a similar attack.

    3. This is an extra specifically for crypto that I happened to notice while angrily trading btc, doge, and ethereum, they are heavily traded by algo’s, you can crash them by repeatedly buying on a dip, then selling for a minor gain. The algo’s see it as pattern trading and alter their trades to try and recoup losses, the price goes down. Most stocks are not currently as easily manipulated in this manner. Most stocks if you get a gain of a few cents, algo’s will see it as a stock paying out, and will pile into it meaning after you sell for a profit the price keeps going up… Which stinks, but it’s doing that because you made a profit, and likely the movement would be different if you hadn’t made profit, if you took a loss, the algo’s might see it as people are giving up and try to pile in shorts so the price further sinks… My point over all is; having a finite resource of any kind as currency is dangerous because a small group of people already have a majority of the current limited resources and there’s nothing stopping them from simply buying up the new limited resources when it’s available. As Argentina is finding out… Also young currencies have inherent liabilities to them like loop holes people can use to get gains or losses when gains or losses are not due.