This post first appeared at Government Cheese – Chronicling the collapse of democracy

The crypto crash means the “serious money people” are betting that Trump will fail.

When crypto started to become big money serious investors got involved. Serious investors do real analysis and usually know what they’re involved in. Sure, there are the dupes out there who think crypto has real “value.” But the real money in crypto comes from real investors putting millions into it and doing some degree of actual analysis of the risks.

Crypto’s only real use is crime. Its “use case” is ransomware, organized crime, bribery, fraud. With Trump there is the “rug-pull” fraud use case where you “issue” crypto coins, people place bets, and the issuer pulls the rug and cashes out. (Note – When you buy crypto you are giving crypto owners liquidity – backing the ability of criminals to cash out after their ransomware/bribery/whatever score.)

“Investing” in crypto is really just a bet on criming going up.

Crypto’s price went up and up because the real money made bets that Trump is going to be able to keep the crime racket going, even increasing it. They also believed the US government would step in and back it, buying up billions and maintaining its liquidity. A bet on crypto was a bet on Trump’s success at imposing a mafia state on the world.

So by pulling out and crashing the price, the “prediction market” of crypto – the big players – are betting that Trumpism isn’t going to succeed.