Here is the equity part for reference...
Reason #2: Altcoins Are Not Like Equity or Investing in Start-Ups
Once people realize altcoins are not good money, they often fall back on the claim that they are like equity or investing in tech start-ups.
When you invest in the equity of a start-up, you have an ownership stake. It’s a legal claim to the assets of the business and its future cash flows.
However, altcoins do not represent any ownership stake or legal claim on any asset or cash flow whatsoever. That’s why they are nothing like equity, despite what many believe.
It would be similar to mistaking Chuck E. Cheese arcade tokens or airline frequent flyer miles for an ownership stake in the underlying airline or arcade business.
But suppose altcoins did represent an ownership stake or a claim on an asset. They would then undoubtedly be “securities,” which means their developers must register with the government. I think the SEC should have been abolished yesterday, but flaunting them is stupid. Practically no altcoins have registered as a securities, yet most of them probably are indeed securities—even though they offer no legal claim to ownership.
Given their statements, it’s clear that the SEC views altcoins as unregistered securities. That’s because altcoins have issuers.
By contrast, the SEC and the rest of the US government have been clear that it views Bitcoin—and only Bitcoin—as a commodity, a much more favorable designation. That’s because Bitcoin does not have an issuer.
It brings up another relevant point. Most altcoins would cease to exist if the SEC went after them, which illustrates that, despite the marketing claims and technobabble, altcoins are not decentralized.
Here’s the bottom line…
When you buy altcoins you get the worst of both worlds. You get the regulatory and legal risk of owning an unregistered security without any ownership stake in assets or future income.
Altcoins are nothing like equity.
Correct, I elaborate more in the article below.
The only one I disagree is #4. Altcoins are nothing like equity... it's being far too generous to them.
The Case Against Altcoins: 3 Reasons Why You Should Stick to Bitcoin Only
Privacy coins may have good privacy features, but they lack credible resistance to debasement.
I can get good privacy using Mexican peso bills, but that doesn't make it good money. It's still a shitcoin.
Same concept applies to privacy coins.
Three things most people don't know about money in bank accounts...
#1. It's not yours.
#2. It's not there.
#3. It's not money.
The sovereignty in Bitcoin is not with the developers, the miners, insiders, influencers, large holders, or any individual or group.
It’s with the globally decentralized network of full nodes, which anyone can operate.
For every other cryptocurrency, the opposite is true.
Few understand the simple truth that although there are over 20,000 cryptocurrencies, Bitcoin is the only one suitable as good money.
The Case Against Altcoins: 3 Reasons Why You Should Stick to Bitcoin Only
In a matter of weeks, Saudi Arabia has:
1. Restored relations with Iran
2. Restored relations with Syria and will welcome it back to Arab League
3. Supported OPEC+ production cut
4. Announced an end to war in Yemen
5. Agreed to sell oil in other currencies
It’s hard to overstate how much the petrodollar system benefits the US. It’s the bedrock of the US financial system and has underpinned the dollar’s role as the world’s reserve currency since the 1970s."
Is this era coming to an end?
Did you know that central banks bought more gold last year than any year in the past 55 years—since 1967?
Though most don’t realize it, 1967 was a significant year in financial history, mainly due to the events at the London Gold Pool.
The London Gold Pool was an agreement among central banks of the United States and Western European countries to stabilize the price of gold. The goal was to maintain the price of gold at $35 per ounce by collectively buying or selling gold as needed.
However, in 1967 the London Gold Pool collapsed due to a shortage of gold and increased demand for the metal. That’s because European central banks bought massive amounts of gold as they began to doubt the US government’s promise to back the dollar to gold at $35/ounce. The buying depleted the London Gold Pool’s reserves and pushed the price of gold higher.
In short, 1967 was the beginning of the end of the Bretton Woods international monetary system that had been in place since the end of World War 2. It ultimately led to severing the US dollar’s last link to gold in 1971. The dollar has been unbacked fiat confetti ever since—though the petrodollar system and coercion have propped it up.
The point is large global gold flows can be a sign that a paradigm shift in the international monetary system is imminent.
The US had $500, $1,000, $5,000, and even $10,000 bills.
The government ended these bills in 1969 under the pretext of the War on (Some) Drugs.
Even though the Fed has devalued the dollar by over 88% since 1969, it still refuses to issue notes larger than $100.
Are you concerned about CBDCs?
Then you should be paying attention to what is happening in Nigeria.
That’s because there’s an excellent chance your government will use the same playbook when they decide to impose CBDCs in your area—which could be soon.
CBDCs are an instrument of enslavement and represent a quantum leap backward in human freedom.
Unfortunately, they're coming soon...
Here's the top 5 things to expect and how you can take preventative action.
How a CBDC comes to the US in 3 easy steps...
#1. The Fed becomes the FDIC and insures all deposits.
#2. Then, might as well have your bank account at the Fed.
#3. Then, the Fed might as well issue Fedcoin or whatever they call the CBDC.
That's where this trend is headed.
"Lender of last resort" translated into English means:
Legalized counterfeiting of the currency to backstop a legalized Ponzi Scheme.
Sometime soon the Fed will come out and say:
"Steady lads, deploying more capital."
Public Service Announcement:
The banks don't have your money.
And the money you think they have is fake anyways.
Have a nice day.
The CDS Market Reveals How To Profit From The Coming Collapse Of Fiat Currency
https://www.zerohedge.com/crypto/cds-market-reveals-how-profit-coming-collapse-fiat-currency
Currency debasement has financially wiped out countless millions throughout history.
But you don’t have to be one of them...
Bitcoin is the only commodity where higher prices cannot induce more production and supply, eventually lowering prices.
A supply response is not an option.
That means the only way Bitcoin can respond to an increase in demand is for the price to go up.
Legendary value investor Bill Miller has called Bitcoin “an insurance policy against financial disaster.”
He’s correct.
Bitcoin is about as close to perfect financial collapse insurance as you can get.
Only 1.7 million more Bitcoin will be created (at a decreasing rate) over the next 117 years.
In other words, Bitcoin's supply will only grow about 8% in the next 117 years.
By reference, the US money supply has increased by over 39% since March 2020.
The trend of rampant currency debasement is already in motion and accelerating - and 2023 could be the year it reaches a crescendo.
Are you ready for more inflation and financial chaos?
How To Resist CBDCs - 5 Ways You Can Opt Out Of This Dystopian Future https://www.zerohedge.com/personal-finance/how-resist-cbdcs-5-ways-you-can-opt-out-dystopian-future
#[0]
Bill Miller, legendary value investor, has called Bitcoin "an insurance policy against financial disaster."
He's absolutely correct and the hyperinflation and banking collapse in Lebanon is proof.
Here's why...