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Matt Levine

Bitcoin and the Incredible Power of Fiction

Viewed in a certain light, cryptocurrencies are just like nation-states or religion. Humans generate abstract concepts and use them to coordinate action.
This is not investing advice.

This is not investing advice.

Photographer: Sean Gallup/Getty Images

Here's Paul Singer's Elliott Management with the bull case for bitcoin:

I mean look. If I told you "X is a scam," you probably wouldn't buy X, because you are a savvy Money Stuff reader and you don't buy into scams. But maybe you should! What if I told you "X is a really good scam, and it's just getting started"? The stereotypical pump-and-dump scheme starts with some fraudster hyping a stock, and ends with a bunch of retail investors holding the bag when that stock crashes. But in between there are usually savvy people who buy the stock on the hype, knowing that it's a scam, but believing correctly that they'll be able to sell it to someone else on the way up and get out before the crash. Sometimes the right trade is to short a scam, but often it's to go along with the scam for a while.