Last month the Mgtow forums were subjected to many threads pushing the idea crypto was the future, and many insinuated we would be fools not to jump in. Their arguments at times persuasive, I decided to begin studying crypto. This is what I have found out, but bear in mind there are many things I am still ignorant of. But I feel a warning is justified due to the warning signs I have uncovered.

The claims:

Crypto is a hedge against fiat currency.

Crypto allows us to avoid regulation, the anonymity keeping the government out of our business.

Crypto is a perfect way to hide assets (if a man is facing divorce rape soon).

These statements are fallacies in my opinion, and here is why. A big reason crypto was being pushed was due to the hyper inflation that had occurred. On Nov 12th, Bitcoin was being valued at 6229 USD. On Dec 17th, it was being valued at 19458 USD. A jump of more than 300% in the span of barely over a month. What on earth could possibly have increased its value by so much?

There is a coin being used (owned?) by one of the major exchanges called Tether. It claims it will always be valued as 1 USD, banking one for every coin sold. This coin was used due to Wells Fargo pulling their bank services from the exchange. On 10/28 the total supply of Tether was around 50 million coins. It now has over 2 billion coins. That is quite an injection of coins, which would help explain the meteoric rise in price of Bitcoin, and the alt coins.

While it is true that there is no proof they do not have 1 USD in a bank for every coin they have printed, they refuse a true audit, the company they were working with parting ways with them last weekend (how hard is it to verify the ending balance of a statement from the bank?).

So for all intents and purposes, it is likely that Tether is run just like fractional banking. The problem with this is when you inject such a large amount of currency into a closed system, it creates what is called velocity. I believe this is exactly what we saw here recently with the hyper inflation of Bitcoin.

The U.S. government has issued a subpoena to Tether and the exchange in question, and just like we saw with the tax bill recently declaring all trades are taxable events, you can rest assured that the end result will be further regulation once they are done with their investigation.

Now about that anonymity. Almost every exchange will be demanding you jump through a lot of hoops to verify your identity. After that, every wallet you will ever use with that exchange can be tied to you, as well as every wallet you transfer to from those wallets. The block chain itself is a testimony of every single transaction. So unless you are extremely familiar with the dark net (I doubt many of us are) I would never count on being able to hide your transactions from any family court that takes an interest, and am positive that within a couple of years the IRS will have a whole division doing nothing but tying wallets to people.

Sorry if this post is not clear on anything. It would be from my not being used to posting coupled possibly with my ignorance still regarding many angles of crypto/blockchain. But just these warning signs compelled me to post this to counter the many pro crypto threads that were being pushed here a month ago.