Cryptocurrency Vast Ponzi Scheme – Pasadena Star News

On November 10, 2021, the Bitcoin logo appears on the screen of a Bitcoin ATM in Los Angeles, California. (Photo courtesy of Mario Tama/Getty Images)

It is rare in this world to be able to say with absolute certainty that something is nonsense.

dribble. Bilge, Claptrap.

But there are some things like that. And of one of them, I am sure. So every time I hear someone taking cryptocurrencies seriously, I have to ask them: Don't you realize it's all bullish?

On paper, there is a certain amount of foolishness. It's not just gambling, it's not a fun fad, it's not a cool new investment, it's not an interesting alternative to the seemingly deadly and boring reality of money.

It doesn't exist. It's a scam. That's a prank. It has no intrinsic value at all.

So why should we talk about it? It's been several years since we entered the Bitcoin era. But the fact that your Uncle Nate still claims he's missing out on the next big thing by not exchanging fiat currency for part of a Ponzi scheme means it's not a Ponzi scheme. It will not be.

Now that the old gold standard has been properly retired, it is true that the value of the paper dollar in your wallet is based primarily on the fact that other parties receive it in exchange for goods and services. And in a way it's true that it's valuable because it's backed by the full faith and credit of the U.S. government. But the dollar is typically worth more relative to any other currency issued by treasuries around the world, not because of the gold bricks in Fort Knox in the past, but more recently because of the Washington, D.C. It's not because DC is being built. Its higher value than other Simoleons is primarily due to the strength of the U.S. economy and lower risk.

And just another good reason to say that, the next time Uncle Nate starts strapping horns to his head and starts a little riot under the Capitol dome, he'll knock it out. He's ruining your net worth.

It is also true that you can buy and find uses for digital currency products if you are prepared to deal with an exchange system that gives new meaning to the word “volatility”.

But what do you think is behind the instrument? Is some paperback artist trying to kick you out of his fancy office in Menlo Park?

Fraudsters seeking to extort real money in exchange for counterfeit currency believe that virtual currency is simply digital money that does not require banks to verify transactions, and that transactions are recorded on a blockchain, or “immutable ledger.” It will tell you that. Track and record assets and transactions. ” They will praise it as very convenient as it allows people to pay each other directly through the online system.

You would answer: “Baby, have you heard of Venmo?”

There is a very old and wise rule of investing: you should never put your money into something you don't understand. And I confess that I have never invested a single penny in the crypto market, but it was only recently that I realized one of the strangest things about it. I knew that such cryptocurrency “mining” operations were widespread across the country. There, vast numbers of powerful computers perform trillions of calculations every second as part of efforts to prevent encryption and, haha, fraud.