Why Bitcoin is the biggest global fraud of the last 20 years - Technology
Why Bitcoin is the biggest global fraud of the last 20 years

Why Bitcoin is the biggest global fraud of the last 20 years

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In the late 1990s, Silicon Valley capitalists and New York City bank investment bankers used phrases like "monetizing", "stickiness" and "B2C" to justify the ridiculous estimates of Internet companies. They claimed that traditional methods were not able to evaluate dotcom companies - which had no income - because we were entering a whole new economy.
Believing these people, and fearful of saving this new floral order, small investors, grandparents, grandmothers, barbers and taxi drivers invested life savings in companies such as pets.com and eToys. Fluska plasi, and they lost everything. Through a $ billions of wealth transfer from Main Street to All Street, CEO and unscrupulous bankers were enriched at the expense of hundreds of thousands of ordinary investors, leaving them in desperation for the future.
History is being repeated with Bitcoin. This time it's not just Main Street USA that will miss; loss will also be the developing world. Technology has allowed Silicon Valley, China, and New York guys to rob anyone, and everywhere, having a bank account and internet connection.

The story being sold to Bitcoin victims is that because we can not trust the banknotes issued by the government, Bitcoin is the future of money. An investor calls Bitcoin "a gift from God to help humanity correct the chaos caused by money". A PayPal director predicts the Bitcoin prize will reach $ 1m in the next 5-10 years; asset managers say it's the new florist.
All this is a foolish one. Yes, the price of Bitcoin could double or even quadruple - because its price is based on pure speculation, and such stories are fueling this speculation. But Bitcoin's market price is almost certain that at one point it will drop and burn, just as it did with dotcoms, and for the same reason: because it's all a bloated creature. And when it happens, we will have no one to turn to, because no government or bank is supporting Bitcoin; and people who are blowing Bitcoin will have taken the money and will have disappeared in time.
The price of Bitcoin is not a reflection of its use as a currency; it only reflects the demand for the mirage of its speculative value. The price is rising only because people around the world are listening to stories about how others doubled or tripled their money in a short period of time - and do not want to save it. Unscrupulous investors are borrowing to buy Bitcoin. Those who have spent the money are sorry to see that its price increases, so they continue to accumulate.

Bitcoin was invented by an unknown person or group, to be a digital currency. It allows money to be directly transferred between individuals using cryptography. The bank account book is distributed to all users, and complex math transactions guarantee transaction integrity. Such a system makes it difficult for governments to know the identities of people who exchange money, so it has become a paradise for money laundering, drug trafficking and corruption.
Beyond its usability for crimes, Bitcoin has also major drawbacks in designing.
Bitcoins are created (or "digested") at predefined rates that gradually decrease, with a total limit of 21 million usable Bitcoins. The pace of growth of available Bitcoins is not moving in pace with the number of people they want to buy, so Bitcoin's price continues to grow. Because its price increases, even "excavators" whose computers make complex calculations to earn coins, even those who buy Bitcoin from others are reluctant to use them as coins, spending them.
Instead, they keep their currencies as they expect the price to rise further. With the tight bitcoin bid and rising demand, instead of working as a currency, it has become a speculative empty asset.

Then, there are problems with the technology itself.
First, anyone who has access to a Bitcoin (or private key) password has the authority to spend the bitcoin that has been disconnected; password loss means the loss of all Bitcoin related to it.
Secondly, the linear increase in the chain of blocks that form Bitcoin is resulting in exponential growth in the accounts needed to process and verify transactions: Transactions that once took place for ten minutes now require hours. Third, with Bitcoin transaction fees that go over $ 25, a $ 5 payment costs $ 30. Clearly, this is not a functional digital currency.
The most worrying thing about the planet is the energy expenditure required for transaction verification. The Bitcoin network is said to be consuming 32TWh annual energy - almost as much as the whole of Denmark. Each transaction consumes 250KWh, which is enough energy to supply a home in the West for nine days in a row. China has become the dominant state of Bitcoin excavation, as its provinces offer scrapers a very cheap energy. Of course digital coins are the future, but there are some more meaningful options than Bitcoin. Take for example WeChat Pay and Alipay in China, which now process $ 5.5 trillion in payments. Or Unified Payments Interface in India, which enables people to transfer money within a few seconds - at no cost. This happens from bank to bank, provides support and security for the client. So, there are better and simpler ways.

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