This is the latest installment in my series of posts about ICO Mania.
In a blog post from Sunday, I put forward a proposition about how cryptocurrency, or more appropriately cryptocurrency shills and entrepreneurs (the software will be fine), will meet their doom on account of little old ladies. I wrote:
The introduction of millions of ordinary retail investors to the market (300,000 last week on Coinbase alone!) brings Bitcoin something absent from the strictly nerd-only crashes of the past: seemingly helpless and innocent victims.
Often described in cryptocurrency circles as “Grandma,” she is the most terrifying litigant/complainant in the entire Universe. This is because Grandma has the power to band together with other Grandmas to become an unstoppable and very angry mob of Grandmas, pitchforks in hand, baying for blood.
And blood she shall have. Grandma, qua depositor or investor, will call down swarms of attorneys to sue everyone in sight and claw back what losses they can. Frauds will unravel. Law enforcement will finally get political backing for additional resources to investigate. Promoters’ reputations will lie in tatters. Years of chaos, legal wrangling and Congressional hearings will follow.
Today, the Wall Street Journal brings us its story: “Bitcoin Mania: Even Grandma Wants In on the Action.” Some excerpts:
“I thought it was called big coin,” the 70-year-old said. “I didn’t even know what it was, a piece of coin? Why would I invest in a piece of coin?
Or:
Believe me, I didn’t have this much fun with T. Rowe Price, said the retired secretary and taxi driver
When these people lose money and lawyer up, as surely they will, be afraid.
Be very afraid.
[…] other ways, too; for example, Coinbase accepts credit cards, which is basically margin trading for grandmas, without collateral and with 20%+ rates of annual […]
[…] other ways, too; for example, Coinbase accepts credit cards, which is basically margin trading for grandmas, without collateral and with 20%+ rates of annual […]
[…] other ways, too; for example, Coinbase accepts credit cards, which is basically margin trading for grandmas, without collateral and with 20%+ rates of annual […]
[…] other ways, too; for example, Coinbase accepts credit cards, which is basically margin trading for grandmas, without collateral and with 20%+ rates of annual […]
[…] other ways, too; for example, Coinbase accepts credit cards, which is basically margin trading for grandmas, without collateral and with 20%+ rates of annual […]
[…] other ways, too; for example, Coinbase accepts credit cards, which is basically margin trading for grandmas, without collateral and with 20%+ rates of annual […]
Out of curiosity (I really mean it): Who would you want to sue? And based on what?
Anyone who had anything to do with the user’s loss, for a hundred different things.
Enraged Grandma: Class action territory; Congressional investigation territory; systemic risk to financial system territory (once the BC assets exceed a tipping point so that illiquidity and/or losses trigger a flight to liquidity in other markets and banks) and jail and heavy-duty legal fees for the poor souls who will be blamed for the debacle.
Yup.