Last updated on January 2nd, 2018 at 12:00 am
At its root, bitcoin is a Ponzi scheme — it will stay afloat only as long as enough people buy the fiction that bitcoin represents real value. All other cyber currencies are Ponzi schemes, too, except, arguably, initial coin offerings (ICOs) funding actual business start-ups.
While the forthcoming bitcoin bust will not end well for cyber currencies lacking any intrinsic value, from that wreckage will emerge sounder means for executing a variety of financial transactions, based on blockchain technology, that transfer the ownership of assets with real value.
Meanwhile bitcoin and the like will quickly fade into financial history, just as tulipmania did, serving solely to remind future generations of the folly of gambling on illusions of value.
Eulogy made by Bert Ely