https://www.gutenberg.org/files/24518/24518-h/24518-h.htm

https://www.gutenberg.org/files/24518/24518-h/24518-h.htm#south-sea

THE SOUTH-SEA BUBBLE.

Contents

At length corruption, like a general flood,
Did deluge all; and avarice creeping on,
Spread, like a low-born mist, and hid the sun.
Statesmen and patriots plied alike the stocks,
Peeress and butler shared alike the box;
And judges jobbed, and bishops bit the town,
And mighty dukes packed cards for half-a-crown:
Britain was sunk in lucre’s sordid charms.—Pope.

The South-Sea Company was originated by the celebrated Harley Earl of Oxford, in the year 1711, with the view of restoring public credit, which had suffered by the dismissal of the Whig ministry, and of providing for the discharge of the army and navy debentures, and other parts of the floating debt, amounting to nearly ten millions sterling. A company of merchants, at that time without a name, took this debt upon themselves, and the government agreed to secure them for a certain period the interest of six per cent. To provide for this interest, amounting to 600,000l. per annum, the duties upon wines, vinegar, India goods, wrought silks, tobacco, whale-fins, and some other articles, were rendered permanent. The monopoly of the trade to the South Seas was granted, and the company, being incorporated by act of parliament, assumed the title by which it has ever since been known. The minister took great credit to himself for his
share in this transaction, and the scheme was always called by his flatterers “the Earl of Oxford’s masterpiece.”

It the end, the total value of the "corporation" fell to ZERO.

Shit-Coin (and all crypto-currency) has no intrinsic value. Nothing backs it. REAL Currency, on the other hand, has the power to cancel debt. Suppose that you owe someone $100. You then hand him a one hundred dollar bill and the debt is canceled. He MUST accept it, by law.

Shit-Coin has no such legal power. Like all Ponzi schemes, it operates on the "Greater Fool Theory"; each sucker buys it with the hope of finding an even greater fool to sell it to. Shit-coin has already suffered from one partial collapse where the value went down by nearly half in one day. There is nothing that prevents it from dropping to ZERO as has always happened to similar scams.

Contrast Shit-Coin with a real security like a stock or bond. In both of these cases, the security is backed by the value of the corporation that issued it. This is a REAL object, with factories, offices, warehouses, etc. Shit-Coin, for all practical purposes, operates out of a shoebox.

DFM