The Worst Narrative In Cryptocurrencies

Successful investing is often more so about how to avoid bad ideas than it is about finding the right ideas.¹ In the last year there has been no place worse to be than cryptocurrencies with most of them down 85%+. Despite this I still see lots of optimists pushing cryptos based on narratives that are fundamentally wrong. For instance, here’s one I see all the time:

“Governments are big bad terrible entities that will print money and ruin society and we can create a better form of decentralized money that won’t inflate our living standards away.”

That’s not an exact quote and I don’t want to blow anyone up, but I’m sure you’ve read something like that somewhere. Now, I am not here to imply there are no good narratives for owning crypto. But this one is particularly bad. Fixed money supplies without counterparty-based credit markets do not work. They have never worked. So, here’s why this narrative doesn’t make sense:

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