Intro to the Ponziverse

Ponziverse… You may be thinking this is a lame knockoff of Metaverse, which means beyond the universe, or beyond everything (that is tangible) and alludes to the digital world. The suffix verse just means the totality of the root word. The Ponziverse is exactly that. Ponzi is encompassing more than just Charles Ponzi, every known and defined Ponzi Scheme, and even beyond crypto; it’s for anyone who participates in any part of the financial system. The entire system is all about bringing in new people and sucking as much money in as possible, paying sellers with this new money and not paying them with real profits or any tangible value. Just hype and projected values, with large companies enjoying the benefits of the Fed injecting liquidity to them, assisting in driving the prices up. That’s what The Ponziverse is all about, this illusion we are all living in, whether we know it or not.

The slogan for Ponzi is still “This is a Ponzi Meme not a Ponzi Scheme”, but Ponziverse is the movement, highlighting that most things are overvalued and only sustainable because the notion that continuing to dump money into the system will lead to forever exponential gains in the market.

This is why P/E ratios sustainable over 30 have become the new normal in the current environment and why crypto tokens that provide no use or real profitability are so popular. People no longer care about profitability, only the totality of the money and liquidity entering a sector or asset, so they can cash out freely as more and more money flows into the sector, despite any real long term profitability measures.

To go into more depth, it will require a trip back to the early 1900’s, and even into the late 1800’s, detailing dozens of events that have taken place and led us to where we are in today’s financial system to truly get a full grasp and understanding of it.

This isn’t the first, nor will it be the last time the human race experiences this, as it is in our DNA to expand and conquer, but what happens when the expansion rate requires unreasonable returns on things and we are left without anyone else to conquer and force to cooperate with our system and ideologies which essentially constitute a scheme?

Let’s take a look back in history to Ancient Rome where the fall came from emperors minting millions of coins to cover expenditures, flooding the economy with worthless pieces of copper alloy with a thin layer of silver instead of pure silver which held the tangible value and wasn’t just a faith based promissory note. Doing this destroyed public confidence in Roman currency, causing rampant inflation. Gold and silver mines ran out, as did Rome's supply of conquerable enemies to continue expanding on and extracting resources from… Ring a bell?

To Be Continued…