The Bitcoin Fairy
The Bitcoin Fairy by
TDC Note – This is a lengthy, well thought out article and describes some of the issues that I see with bitcoin and cryptocurrencies in general.
Bitcoin did a split and holders are twice as rich! Don’t you wish YOU were them?
Some people have wisely observed that Bitcoin is a pyramid scheme. It is, but the reason why is not at all clear.
And so suckers are still buying in to Bitcoin (BTC), while better ideas languish. It’s incredible.
Flocks of vultures, ever on the lookout for effortless get-rich schemes, all hoping for an increase, and a big one. The bigger the better!
At least people aren’t talking up Bitcoin on the street and in the elevators. At least not yet. Give it time.
Of course, Jim Cramer has been shilling for Bitcoin, saying it may hit $1,000,000, and to “Act now!” Heh-heh: His rationale was that banks in Europe were using them to “pay off ransomware,” on his idiotic show, Squawk on the Street.
Ah — at least that gives a clue as to a possible motivation for the recent “WannaCry” computer virus panic.
Of course, it may “hit a million,” that’s the nature of these scams. That is a meaningless target.
Quick & Dirty Summary
- Bitcoin split
- A questionable system
- Bitcoin shills
- Why Bitcoin is a Ponzi-style scheme
- Recent Bitcoin issues
But, enough are still piling in, to keep the price up.
If lotteries are a tax on fools, BTC is money for fools.
What is it, that “investors” think? That someone with “deep pockets,” is going to step up to “make good” on their inflated BTC holdings?
“I paid $1000 for my bitcoins, and they’re worth $100,000 at the current price! I demand you give me $99,000, now!”
There’s a BTC tracking site with an hilarious “FAQ,” that explains nothing about BTC, as usual.
One of the “FAQs” is, “Is Bitcoin a pyramid scheme?”
“No,” goes the answer, “Bitcoin makes no representation that you are going to profit off of it, like a ‘real’ pyramid scheme does.”
It plainly is a pyramid, or Ponzi, scheme, not because of any claims or representations BTC makes, but because it was structured that way.
They could have structured it as a system where you put in a dollar, get out a dollar, after fees. After all, it is useful in aiding people in transferring money across borders, and it’s not unreasonable to have a fee for the service. What — you expected that for free, too, along with the benefit of all the effort that went into developing BTC, publicizing it and servicing it? Not even free, but to be paid for it?
That FAQ mentions that Bitcoin developers and early adopters deserve something for their labors and risks. Maybe sí, maybe no. The way it was structured was hardly sensible as a sound business model, since they took something potentially valuable, yet structured it as a gamble, instead of taking the honest route, requiring payment for services rendered. One could make a good case they don’t deserve anything.
For the business-minded, this does give rise to a brilliant opportunity: “Digicoin,” or “Bytecoin” or something like that, that does operate in an honest way. C’mon, lets see some IPOs, or “ICOs” (snicker), or is everyone looking only for the quick hustle?
It may be that vested interests will never allow a productive and proper use of the blockchain idea, because it would be a nuisance to try to keep it under control.
What they should do, at the BTC HQ, is to unwind the service: Pay back everyone who paid in, as nearly as possible, whatever amount they bought in for, less a service fee. That would be an honest wind-down, and people might get — who knows? Maybe 50% to nearly 100% of their buy-in back. Then, they should use the lessons learned to code up a new BTC, without the flaws.
Hah — that would set the feathers flying.
Of course, I’m just a liar and a hater. Because no one will ever suffer losses investing in Bitcoin. Any sign of problems, the Bitcoin Fairy’s got your back.
There must be a Bitcoin Fairy — she just conjured up free money for all with this new Bitcoin Cash (BCC). Everyone who had BTC got “free” BCC as a result of this “split” of the blockchain. Nothing short of a miracle, really.
Blog commenters are everywhere, and they’re living off the fat side of the hog: