Bitcoin ponzi china
They claimed conventional methods were inapplicable in valuing the dot-com companies — which had no revenue — because we were entering an entirely new economy. Believing these people, and afraid to miss out on the gold rush, small-time investors, grandma and grandpa, and bitcoin ponzi china and taxi drivers invested bitcoin ponzi china life savings in companies such as Pets. The bubble burst, and they lost everything.
Through a transfer of wealth in the billions of dollars from Main Street to Wall Street, VCs, unscrupulous CEOs, and bankers had effectively enriched themselves at the expense of hundreds of thousands of ordinary investors, leaving them to despair about their futures.
History is repeating itself now with Bitcoin. Technology has made it possible for hypesters in Silicon Valley, China, and New York City to fleece anyone, anywhere, who has a bank account and an Internet connection. The story that Bitcoin victims are being sold is that, because we cannot trust government-issued currencies, Bitcoin is the future of money. This is complete nonsense.
Yes, bitcoin ponzi china price of Bitcoin may yet double or even quadruple — because its price is based on pure speculation, and these stories are feeding such speculation.
And there will be no one to turn to when it does, because no government or bank is backing it up; and the people who are hyping Bitcoin will have cashed out and be long gone. Unsophisticated investors are taking out loans to bitcoin ponzi china Bitcoins.
Those who have spent the currency feel remorseful when they see its price subsequently increase, so they hoard it. Bitcoin was invented by an unknown person or group to be a digital currency. It allows money to be transferred directly between individuals using cryptography.
The bank ledger is bitcoin ponzi china to all users, and complex mathematical transactions ensure transaction integrity. Such a system makes it difficult for governments to know the identities of people bitcoin ponzi china money, so it has become a haven for money laundering, drug dealing, and corruption.
The rate of increase in available Bitcoins is not keeping pace with the number of people keen to buy them, so the price of a Bitcoin keeps increasing. Instead, they sit on their coins while they wait for the price to rise further. With Bitcoin supply constrained and increasingly falling short of demand, instead of functioning as a currency, Bitcoin is a speculative empty asset. First, anyone who has access to a Bitcoin password or private key has the bitcoin ponzi china to spend the Bitcoins it unlocks; loss of the password means loss of all of the associated Bitcoins, with no recourse.
Second, linear bitcoin ponzi china in the chain of blocks that make up Bitcoin is resulting in exponential growth in the computation necessary to process and verify transactions: This obviously is not a workable digital currency. What is most worrisome for the planet is the energy expenditure that verifying transactions now requires. Each transaction consumes kWh, enough energy to power an average Western home for nine days.
China has become the dominant Bitcoin-mining nation, with its provinces providing ultra-cheap energy to miners. Digital currencies surely are the future, but other options make more sense than Bitcoin. This occurs bank to bank, provides customer support and security, and has little overhead.
So there are better and simpler ways. For more, follow on Twitter: Beyond its usability for crime, Bitcoin bitcoin ponzi china major design flaws. Then, there are problems with the technology itself.