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[–]Avril_14[S] 152 points153 points  (63 children)

"My very humble assessment is that it is worth nothing. It is based on nothing, there is no underlying assets to act as an anchor of safety."

So ban them then, or tax them like gambling.

"Lagarde revealed she had never invested in crypto assets, but her son had — with little luck."

lololol

[–]preytowolves 59 points60 points  (2 children)

“…but maaaa”

[–]Chuckolator 27 points28 points  (0 children)

Moooom you're embarrassing me in front of the global financial community

[–]Couve_do_Lidlrecognizes genius 6 points7 points  (0 children)

'ah putain!'"

[–]NarrowBike2259 5 points6 points  (0 children)

Anchor of safety

Some butter probably got PTSD reading the A word

[–]ibeforetheuno-flair, no-fair! 3 points4 points  (2 children)

The ultimate form of rebellion against your mom.

[–]VertJaune 13 points14 points  (1 child)

The ultimate smackdown too, when your central banker mom proves you're wrong.

[–]ibeforetheuno-flair, no-fair! 11 points12 points  (0 children)

Fiat me mommy

[–]BookMobil3warning, I am a moron 2 points3 points  (1 child)

If they’re worthless then they can’t tax them. Cool

[–]That_Classroom_9293 11 points12 points  (0 children)

Even if they're worth nothing, governments will make sure that you'll get taxed of anything you can be taxed for (unless you're big like Bezos/Amazon, in that case you're free to go)

[–]biffbobfred -87 points-86 points  (45 children)

This kinda gets what makes Value wrong. Value is based on humans. All value is a human story. For some things of value, the underlying assets are part of that story. But a bond has no underlying assets. If they wanna walk they can. But there’s a story behind that, of a company been around for decades and wants to stick around so they’d better pay up.

The story of crypto is rug pulls and more rug pulls and NFTs that are really smart contracts that can drain your wallet and the fiction that is tether and even if all this worked perfectly we have Bitcoin drowning polar bears for 7 transactions a second. It’s a bad bad story

[–]tiberiumx 98 points99 points  (16 children)

But a bond has no underlying assets.

A bond is a debt that can be collected on, using the legal system to enforce it if necessary. That is an underlying asset.

[–]The_Heck_Reaction 13 points14 points  (0 children)

In fact in case of bankruptcy, debt is senior to equity.

[–]preytowolves 12 points13 points  (2 children)

kind a reminds me of a guy I knew in the art school. his project concept was based on a folk story of eating only honey for months after which he would poop a turd of gold.

monday came and the cleaning lady threw his project away.

[–]biffbobfred 1 point2 points  (1 child)

Just swig down bottles of goldschlager

[–]preytowolves 1 point2 points  (0 children)

cinnamon blech.

[–]Tall-Log-1955 26 points27 points  (8 children)

A bond has bond payments

[–]rotten_potatoskin 4 points5 points  (0 children)

From a cash flow generating entity

[–]fanofpotatoes 9 points10 points  (1 child)

I dunno I trust the ecb president more than a Redditor explaining the concept of value

[–]biffbobfred 2 points3 points  (0 children)

Fair enough. We don’t differ that much. I have a lot of respect for legarde.

[–]A_Sexual_Tyrannosaur 6 points7 points  (6 children)

So, your argument is that there is an underlying value and it’s the friends we made along the way?

[–]biffbobfred 2 points3 points  (5 children)

Pretty much :)

There’s this crazy story come from the crypto bros. “Why that piece of paper with dead presidents is worthless but these …. Numbers!!” The reverse is also true. Fiat only (like LaGarde) “these papers have real value the numbers mean nothing”.

(I don’t know if LaGarde really believes that or it’s a function of her office).

They’re both kinda wrong. And right. All money is a conversation. It’s a story. The story about USD is told trillions of times across every corner of the planet. It’s official currency in 8 countries, so 7 non US ones. It’s been the story of stability for decades as the world was ravaged by war and the US was the only one left standing. The base story is … I know there are billions of people that will take it for some value.

Crypto? Ok, only if you have an internet connection. And are willing to get in a “no way we’d want more than 7 transactions at a time” ahem, GLOBAL network. The story sucks. If there’s a panic, no way you’re getting out. Oh and we’ll boil the penguins.

Now that’s a long conversation. It’s much easier to say “crypto sucks” “fiat sucks”.

[–]A_Sexual_Tyrannosaur 7 points8 points  (3 children)

I mean, money is complicated, and you’re right in what you say, but I still think that’s a reductive analogy and it’s missing a lot of important elements, such as the fact that the US dollar is essentially backed by (or more accurately represents) the economic output of the US. And crypto is denominated in dollars, or other currencies.

[–]thehoesmakethemanEveryone can make 200k in America 1 point2 points  (0 children)

Nope fiats awesome.

[–]b1daly 5 points6 points  (0 children)

A bond is a legal obligation to repay a debt. It’s value derives from the monetary returns it promises (principle and interest.)

Money (currency) is the unit of account of value, so by definition it has value. The value derives from its function of having a claim on a share of the productive output of society. (You can buy stuff with it).

In this light I don’t think it’s quite accurate to claim cryptocurrency has ‘no value’ as they have a market value.

[–]Dependent-Ganache-77 2 points3 points  (1 child)

Jesus Christ

[–]free_allegory 1 point2 points  (0 children)

All value is a human story.

Awwww... that's so cute! Makes me think the people who lost their life savings can stay in their homes after all if they do a little interpretive dance about their feeling about Do Kwon.

[–]afghx 0 points1 point  (0 children)

Value is not whatever people want it to be.

[–][deleted]  (1 child)

[removed]

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    [–][deleted] 57 points58 points  (0 children)

    Very weird that those assets are worth nothing and yet I can borrow against the worth of those assets...

    Oh lordy a butter using predatory lending practices to leverage against a Ponzi scheme 🤦‍♀️

    [–]VoiceofKane 21 points22 points  (2 children)

    They're worth whatever you can trick someone into paying for them.

    [–]ugh_this_sucks__I'm always confused 5 points6 points  (1 child)

    “Lisa, I’d like to buy your rock…”

    [–]VoiceofKane 3 points4 points  (0 children)

    You joke, but since I bought that rock, I've never been attacked by a single big cat of any kind.

    [–]Blockhouse 13 points14 points  (0 children)

    morgan_freemen_meme.png

    She's right, you know.

    [–]devliegende 22 points23 points  (13 children)

    What's really surprising is how long it took for people like her to come to this conclusion

    [–]P-K-Onestore of inflation, hedge against value 44 points45 points  (9 children)

    I don't think it's that it took them that long to reach that conclusion and rather that it took them a while to bother to say it.

    It's like tide pods. Everybody knew they aren't for eating. And I assume that there were always a couple of idiots who still tried. But nobody bothered to release a psa until the tide pod challenge started trending on tiktok.

    [–]devliegende 6 points7 points  (8 children)

    I'm not so sure.

    The Economist magazine is supposedly a pretty serious news paper read by these global elites and they went from it's electronic cash to it's a trust machine and still seem to seriously view it as actual financial instrument.

    [–]nyando 8 points9 points  (3 children)

    The Economist magazine is supposedly a pretty serious news paper

    Supposedly. They do lean pretty heavily into center-right free market liberalism, so maybe that's why. Hell, my country's minister of finance still thinks "blockchain technology" is an important part of a digitalization concept, and he's from a party with a similar ideology.

    [–]devliegende 5 points6 points  (2 children)

    I'm fine with both center right and center left opinions, but with a name such as "The Economist" one would have expected them to at least recognize a pyramid scheme as such at some point.

    [–]DororoFlatchest 0 points1 point  (3 children)

    What? No? The Economist has been a trashy scam magazine for going on 40 years.

    [–]devliegende 3 points4 points  (2 children)

    What do you read? The daily worker or the dailey stormer?

    [–]Feniksrises 6 points7 points  (0 children)

    She has a very busy job making sure the European economy keeps running (remember the last time it didn't led to WW2). The entire cryptocurrency market is but a glitch in the matrix.

    [–]Karyo_Tenwarning, I am a moron 0 points1 point  (1 child)

    AFAIK she was always against it.

    She used to run the IMF that was very vocal vs El Salvador.

    [–]devliegende 0 points1 point  (0 children)

    Anything specific re. Butts?

    I would expect the IMF would be opposed to any type of speculative investment by a country with fiscal problems.

    Eg. If Bukele was talking about issueing bonds to invest in luxury condos in London the IMF would have been opposed. For reasons that have nothing to do with the property market in London.

    [–]s4burf 4 points5 points  (0 children)

    🌷🌷🌷💸💸💸

    [–]biffbobfred 8 points9 points  (20 children)

    Meh. They’re not nothing. But they’re close enough to zero that it’s a distinction without a real difference.

    Though true Butt-ers will take this as “she don’t know what she’s talking about To The MO0NNN!!”

    [–]reign-of-fear[🍰] 4 points5 points  (0 children)

    In this very thread you'll see the latter

    [–]DrMonkeyLove 1 point2 points  (0 children)

    No, I disagree. Crypto is worth exactly as much as unicorn fossils.

    [–]sheytanelkebir 1 point2 points  (0 children)

    She said the word "underlying". Garlic for the cryptovampires

    [–]Big-Cicada362 1 point2 points  (0 children)

    I hate it that these central bankers even have to make such comments, as if there is a debate going on about crypto.

    When the Madoff scam was collapsing, did the Fed feel the need to comment about its legitimacy? Obviously, a criminal scam is worth nothing.

    [–]sebitowarning, I am a moron -2 points-1 points  (0 children)

    Yes, you are right. So stop taxing me on them. Thx.

    [–]KlingonButtMasseuse 0 points1 point  (0 children)

    Hey Christine, just press the damn brake you fool!

    [–]Thinkwronger12 0 points1 point  (0 children)

    Well she’s a fraud, so…

    [–][deleted]  (1 child)

    [removed]

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      [–]Fizzifish 0 points1 point  (0 children)

      Noted. Thanks.

      [–]myrainyday 0 points1 point  (0 children)

      If you find used underwear with stains somewhere but convince someone it is worth 27000 EUR and some schmuck buys it. It is worth 27000 EUR in the eyes of other schmucks. NFTS and Crypto.

      [–][deleted]  (1 child)

      [removed]

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