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by jqpabc123 1482 days ago
Analysis aside, common sense suggests that it is very difficult if not impossible to manufacture long term stability in any system based mostly on speculation with limited hard assets to back it up.
3 comments

More generally, I think we can state, it is difficult if not impossible to manufacture long term stability in any inherently unstable system, which all financial markets and human economies are. Better to acknowledge and accept that reality, understand the nature of the inherent volatility, and work to become robust and resilient against it.

Scalable, self-similar, clustering, and long memory are some of the characteristics of the fractal-style randomness of financial markets. Thus, build in safety factors, multiple redundancies, hedges, etc. with those characteristics in mind.

Stability; or the lack thereof, is relative --- with currency made from electrons and hardly any ties to real world economic conditions being a relatively extreme example.
indeed, but it's funny how we use the word phrase "'common' sense", isn't it?
yet people still buy and hold into crypto daily, no?