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“Bitcoin is the greatest scam in history” – Recode | $8,891.62

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I’m tired of saying, “Be careful, it’s speculative.” Then, “Be careful, it’s gambling.” Then, “Be careful, it’s a bubble.” Okay, I’ll say it: Bitcoin is a scam.

In my opinion, it’s a colossal pump-and-dump scheme, the likes of which the world has never seen. In a pump-and-dump game, promoters “pump” up the price of a security creating a speculative frenzy, then “dump” some of their holdings at artificially high prices. And some cryptocurrencies are pure frauds.

The losers are ill-informed buyers caught up in the spiral of greed. The result is a massive transfer of wealth from ordinary families to internet promoters.

Promoters claim cryptocurrency is valuable as (1) a means of payment, (2) a store of value and/or (3) a thing in itself. None of these claims are true.

1. Means of Payment. Bitcoins are accepted almost nowhere, and some cryptocurrencies nowhere at all. Even where accepted, a currency whose value can swing 10 percent or more in a single day is useless as a means of payment.

2. Store of Value. Extreme price volatility also makes bitcoin undesirable as a store of value. And the storehouses — the cryptocurrency trading exchanges — are far less reliable and trustworthy than ordinary banks and brokers.

Indeed, for the vast majority of uses, bitcoin has no role.
Cryptocurrency is best-suited for one use: Criminal activity. Because transactions can be anonymous — law enforcement cannot easily trace who buys and sells — its use is dominated by illegal endeavors.

Eulogy made by Bill Harris

Source

Zsofia takes care of our readers’ questions. Zsofia started mining Bitcoin, then some altcoins with the available AMD GPUs together with her brother. Although her mining activity has stopped by now her passion for blockchain technology and cryptocurrencies remains.

View all Posts by Zsofia Elek

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2 comments on ““Bitcoin is the greatest scam in history” – Recode | $8,891.62”

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  1. Michael Scarborough

    When a cryptocurrency criticism doesn’t bother to mention anything about mining or how mining works, you have to wonder how much depth of knowledge the writer really has on the subject beyond a simple prejudice against any currency not backed by hard assets. Just sayin’…

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