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Print 12 comment(s) - last by Ryanman.. on Mar 13 at 8:57 AM

Funny video highlights serious issues with the world's most popular cryptocurrency.

Given all the Bitcoin scams and Bitcoin scammers around these days, some are trying to figure out why people are entrusting so much money in a scheme predisposed to fraud and popular among fraud artists.
 
Conan O'Brien offers a humorous take on this mess, interviewing the "COO of Bitcoin".  In the video, the Bitcoin professional tries to explain in "layman's terms" and then with a high-production video what exactly Bitcoin is.



Mr. O'Brien deserves some props for getting close to the definition when comparing Bitcoin to PayPal.  Bitcoin to the common man is a lot like PayPal.  It is arguably not a currency
 
However, unlike PayPal it is stored locally as data in wallet apps, making it pretty easy to steal.  And it acts as a speculative investment.  And it seeds wealth to early adopters.  And it makes a tempting honeypot for government sorts, who watch bemused as drug sellers mail packages of drugs in the mail, thinking they will be protected by Bitcoin's "anonymity".

Source: TeamCoco





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By bsim50 on 3/12/2014 2:06:29 PM , Rating: 3
As pointed out in another post, the sheer absurdity of how intrinsically "value-less" and pyramid-scheme-like Bitcoins are is that it costs $15m per day / $5.5bn per year in electricity alone to mine new BC's whilst the 12.5m Bitcoins in circulation x $640 are only worth $8bn in total market combined value (after all these years of mining)...

Meanwhile the rate of new BC's being produced falls to 147,500 new bitcoins (and shrinking) per month, so on a macro-level, that's $5.5bn electricity costs per year just to mine $814m new coins per year.

And that's "Smart investing". LOL.

Let's be honest - this is mostly economically illiterate geeks who are only doing this as some half-baked emotional rebellion against the Fed expanding the USD. Bitcoin's $9 to +$1,000 in 4 years is a joke as a "currency". It's the deflationary equivalent of +180% annual year-on-year price inflation which far exceeds even the worst $ devaluation by a +10x factor.

Eventually it'll sink in that the solution to a unsustainable inflationary fiat scam is not an unsustainable deflationary pyramid scheme with a 5 year shelf life.

Or that any currency with a maximum 21m units meant for 7bn people will experience a permanent liquidity crisis. With a maximum possible 21m Bitcoins, for the whole world, that means there'll only ever be enough currency for just 0.3 cents average per person - which is even more of a problem than the USD inflating as it'll never be liquid enough to be a stable currency or treated like a currency, and is just a gimmick that only works when only a very few geeks use it.

Or that the true crypto-currency winners are those who CREATE them, milk off all the easy money, then bail out (whilst hyping all the time), ie, classic "pump & dump", not those who actually attempt to use it as some medium of exchange 2 years later.

Or for those who say Bitcoin is "backed by maths" - the maths is entirely self-justifying and solves no real-world problems that have any real-world economic value attached to it other than to justify the existence of the Bitcoin! Ultimately, it's like "backing the US Dollar" with USD bank-note verification machines, which only exist because the USD exists...

etc, etc. You get the picture.




By Ryanman on 3/13/2014 8:57:38 AM , Rating: 2
quote:
Or that any currency with a maximum 21m units meant for 7bn people will experience a permanent liquidity crisis.


So basically you're saying "I have literally no idea how bitcoin works, but I'd like to spew my uninformed opinion out whenever I can." Gotcha.


“Then they pop up and say ‘Hello, surprise! Give us your money or we will shut you down!' Screw them. Seriously, screw them. You can quote me on that.” -- Newegg Chief Legal Officer Lee Cheng referencing patent trolls













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