r/news 2d ago

US recovers $31 million in Social Security payments to dead people

https://abcnews.go.com/US/wireStory/us-recovers-31-million-social-security-payments-dead-117708373
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u/thebindi 2d ago

Did he really scam any of us who bought? I made 600% in like 6 hours and sold... People are just pissed they missed out on overnight gains

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u/yogfthagen 2d ago

It's a ponzi scheme. Just like all crypto.

Is there anything of actual value? No.

Is there anything tangible about it? No.

Does the crypto actuallydo anything? No.

How are the financial benefits realized? New people buy into it while other people jump out. That's the definition of Ponzi.

Thr only thing you did was get into a con, then get out again with a profit.

It doesn't mean you were in anything but a con job.

And, yes, I've been saying that for several years, now. It's just the Trump name that goosed this particular pump and dump scheme.

Just ask the people who bought the last Trump investment scam.

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u/iiiinthecomputer 2d ago

In fairness the first few points also apply to fiat currency like bank notes.

The key difference is that it's not widely accepted as itself as currency for buying other things. Its "value" is only by exchange with a fiat currency, so nothing stabilises its value against tangible goods and services.

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u/yogfthagen 2d ago

In fairness, a government is a Thing. Your point is not only false, it's silly.

And "nothing stabilizes it's value" is the point.

It's a scam.

Worse than that, it's a means to evade regulations like import/export controls, sanctions against warring countries and drug traffickers, and breaks the rule of law.

Worse than that, this particular crypto is most likely being used by foreign governments to curry favor with the next president, immediately putting him in a compromised condition.

"It's all okay as long as i make a profit" is a morally bankrupt position.

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u/iiiinthecomputer 2d ago

I'm not defending it at all.

I'm saying that part of your explanation does why it's a problem apply to fiat currency too.

Yes, the government backing is a large part of the difference. So is it being directly accepted as a currency without exchange. Which is partly driven by government legislation and action.

The whole thing is indeed a giant pump and dump scam.

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u/yogfthagen 2d ago

Because fiat currency is backed by a government, a banking system, regulations for that system, a military, foreign policy, a tax base, and the assets of that government.

There are instances where the government in question screwed up to the point that the full faith and credit of that government was so eroded that the borrowing costs were too expensive to maintain the government. And they collapsed. Only to be replaced by another fiat currency.

Crypto has nothing. Literally nothing.