So much to say. So little time. More to follow. Facebook adverts seem to love spamming the new trends, the latest “get rich quick” ads. Not sure what came before these, but my earliest recollections are Ponzi-type Schemes, Pyramid-type Schemes, then came Multi-Level Marketing , then Forex Trading was all the rage, now… there’s Crypto Currencies. Over 1300 at last count – completely worthless, mostly useless except people are selling their houses, taking loans to buy crypto-currencies. You know what we’ll call these people? (soon) HOMELESS.
NOTE: Lots of videos load on this page the first time you open – please be patient! Your PC is not hanging. Thanks!
This video shows how long it takes to withdraw money from a BITCOIN ATM – this is before it became more popular. That “hour long wait” can be up to 16 hours – as seen in next video.
HOW TO USE A BITCOIN ATM – showing how poor it works as a currency. BITCOIN network now so slow, you can wait up to 16 hours!
Don’t believe the FACEBOOK and GOOGLE ADs – Elon Musk owns no bitcoin (see video lower down). He is not heading a new project. Steve Wozniak bought some to play with (see video lower down). Does not invest in it. Confesses to not being an expert. The mysterious creator of BITCOIN is NOT making a new currency.
Lies, Lies and more damn Lies! When New York Times does checking, it appears the truth comes out. Remember – Crypto Traders will say almost anything to cause hype. Drop names, make claims of huge adoptions. Hype makes people buy. Hype drives their price up.
This is an evolving article. I’ve got a LOT more to add and edit. More to follow on YouTube. I need to get this info out or I’m going to miss my opportunity to tell the cult of crypto guys “I told you so!” when it crashes as MANY things have changed in just the last 4 days.
I want to say that EVENTUALLY we will use a global currency that will be a crypto-digital network, but NONE of the current crypto’s will be those. It will be a joint-effort country based system similar to idea behind the EURO, but world-wide and managed by LIMITED processing power and closed, centralized, secure infrastructure with accountability. Banks and governments are not going lose control of their economy. It will be a unique currency network and be 100% transparent and traceable. It may or may not build on existing technology of the blockchain. I personally think the current blockchain implementation is very, very bad and the bubble for ALL crypto-currencies run by individuals / anarchists will pop and lose value. Soon.
Also, many people will make money. Many more will lose. It’s a bet, however. It’s gambling. It’s not a wealth store. It’s not an investment.
Wall Street Journal: What Can You Buy With Bitcoin? A $10 Pizza for $76
Every time these “schemes” appear, their “investors” are usually “cult like” in their behaviour. A few years ago, I brought to the attention via a blog I did of the danger of a new Network Level Marketing scheme where people in this city were being asked to pay to “invest” in a product that would generate money along the concepts of “Google”.
BITCOIN: Biggest bubble in history: what you need to know
The followers (cultists) of this scheme were so intense, I had to get advice from Robert L. Fitzpatrick on it and he kindly assisted with the whole situation. Perhaps he was even instrumental on making people aware of a new scheme.
Rickards: “BITCOIN is a Ponzi Scheme”
“a Ponzi with no-one in charge”
I was heavily attacked on-line by a horde of “investors” in this MLM (Multi-Level Marketing) scheme and attempted to attack / discredit myself and my company. The only time I have seen such malicious, passionate attempt at attacking someone is watching a documentary on the woes of Scientology. This Multi-Level Marketing scheme obviously faded when the suckers (er, ground-breaking entrepreneurs) who invested in it lost their money.
Obviously Forex, MLM is not related to #BITCOIN directly, but judging by the amount of SPAM mails and ads that pop-up right now, rest assured some scheme will attempt to use some sort of Multi-Level Marketing “get rich” promise to sell a crypto-currency. You can lose money on crypto-currencies all on your own – you don’t need others to help you.
Look at anyone pushing BITCOIN. They’re usually nutjobs. They look, speak, shout over you like cultists. They get upset when you disagree. Bitcoin is a religion they are invested in. They have the passion and irrational arguments and “belief” of a religious fundamentalist zealot.
Then, take a step back, breathe, focus and look at the professors, finance experts pointing out the issues with the technology as well as its non-viable use as a currency and wealth store status.
A full YouTube video discussion of this will be appearing on this author’s Craven Coetzee on YouTube in a week or two. This will also discuss the many, many flaws in the current implementation of this pseudo-currency (fraud and Ponzi scheme – depending who you ask)
BITCOIN was introduced as an experiment for a digital currency that was supposed to:
1. Have cheaper transaction fees as it (supposedly) removed middle-men (banks) – It’s failed on this. Transaction fees are now insane. As the network can only handle about 7 transactions per second (world-wide), miners choose to solve the more profitable transactions first. Anything under a few hundred dollars are especially excessive. Expect to pay 25% to 500% transaction fees on smaller items. A US$10 pizza could easily cost you $65 in transaction fees. BITCOIN ATMS charge an inflated rate of exchange – sometimes as high as 25% to cover their costs.
From BITCOIN Wiki, major myth: “Bitcoin is a decentralized digital currency that enables instant payments to anyone, anywhere in the world.”
– It’s far, far from “instant” anything.
2. Become a popular e-commerce currency. Morgan Stanley actually reported early in 2017 that this has failed. Growth is reversing Crypto currencies are just too volatile and unstable. The list of people supporting the currency has actually gone down. Big names like DELL stopped using it for most payments. Steam – the largest “gaming” and “rebel” site in the world now ditched it. Newegg, one of the worlds largest PC suppliers has stopped using it for most things. Prices are listed in US$ on site as BitCoin is just far too volatile to list in BitCoin. Bitcoin now only dominates about 40% of all crypto-currencies at the moment. Basically, it’s a hornet’s nest of instability and variety.
Miners have now become a very inefficient (and expensive) middle-man.
3. Become a decentralized “democratic” network. The issue is unlike other distributed database systems, BITCOIN gets slower the more servers you add to it. The more servers/nodes/miners you add, the worse the entire system becomes. Also, the database from beginning in 2009 to now is 150 GigaBytes. If this technology were to try to scale to something like “PayPal”, the database would grow SIX (6) TERABYTES (+/- 6000 GIGABYTES) per year (using 6,1 Billion transactions figures from PayPal in 2016). From initiation to end of 2017, BITCOIN’s total network only did about 144 million transactions – worldwide. Larger databases need more bandwidth, better latency, so the number of “key” miners will ultimately fall and everything become more centralized.
Six (6) Terabytes on a non-datacentre class environment is a really big file and susceptible to corruption. It would be hundreds of terabytes per year if it (ever) became as popular as VISA /or mastercard. Paypal is a relatively small player compared to credit card companies.
4. Was supposed to be more efficient as it removed the middle-man – It has failed. It is not a practical currency. To withdraw money from an ATM or to confirm the purchase of a pizza – from bitcoin to dollars will take anywhere from 30 minutes to 16 hours with a massive transaction fee.
5. Was supposed to be “rare” and a wealth-holder because only 21 million coins could be “mined” – BUT there is a caveat that is not mentioned: “UNLESS the majority of the miners agree to change this.”
Another caveat? Who decides how many bitcoins are rewarded per block solved? The Majority – once again, consensus of the majority. So the miners decide how much they are paid. The miners also decide how many coins can be mined.
6. Was supposed to be private. Unfortunately with privacy comes criminal activity. Drug Dealing, fraud, terrorism, cyber-crimes are all almost always using crypto-currencies for ransom payments. Why would you want to be associated with this? Almost ALL exchanges are putting restrictions on account asking for proof of address, proof of identification – same as, a bank!
The 12 BITCOIN mining “reward” every 10 minutes and the 21,000,000 coins are just what are CURRENTLY agreed upon. If the system isn’t making the miners money, they may decide (at any time) to change this. All it takes are the 5 top miners to agree on this.
ICO’s are basically fraud. Creating a currency out of nothing, then using that currency to trade for other money that already has a value. China and South Korea already deemed illegal. SEC blocked some new companies as well.
Ever Heard Of ICO? Start-ups Are Using ICOs To Sell Cryptocurrency For Cash | CNBC
THE BIGGEST SCAM EVER!!! ICO’s
7. A decentralized system. FAILED. 5 mining groups control over 50% of the network and have the power amongst themselves to change anything they want.s
8. A public ledger and secure payment system – FAILED – Hundreds of millions have been lost and stolen. More on decentralization. The ledgers are public and decentralized. The wallets usually not secure and most are kept at exchanges. Hundreds of millions of accounts have been hacked. Entire Exchanges (aka banks) have been shut down and gone bankrupt with users losing everything.
9. Was supposed to be more secure. It’s not. Besides the hacking, tt is Impossible to reverse a mistake made in payment of BITCOIN. This is to prevent “double-spending”.
It means if you lose your money, if it’s stolen. It’s gone. No-one can help you. There is no-one to call.
If something is too good to be true, it probably is.
Just because a stock behaved one way in the past does not mean the trend will continue.
BITCOIN must be the only “experiment” that went from beta to live and still remains a work-in-progress with “Majority Rule” determining the direction. That Majority? China now does over 80% of all mining. 1% of BITCOIN owners own 50% of all BITCOINS.
Basically, BITCOIN is an approaching 300 Billion Dollar Virtual Stock that is run by a bunch of programmers probably with financial, accounting knowledge of School kids. Think I’m being too harsh? See this video and see how Mt.Gox – one of the first cyber-heists was started – after a friggin’ Trading game! Magic the Gathering!
Is BITCOIN secure? finance professor Campbell Harvey
Since the currency has failed, BITCOIN loyalists are desperately trying to sell it as a “store of wealth” and also try and say it’s value is not speculation, but “a service”.
Crypto-Currency is not “digital gold” – no matter what you’ve heard. It’s fraud. It’s a bunch of IT guys who decided to make money out of thin air as an experiment.
Economist Jim Rickards on gold vs Bitcoin
It’s certainly no longer a viable currency and never will be as popular as a dollar, euro nor even be “safe” as it moves around too much.
The ONLY thing that makes bitcoin valuable is that people believe the myth that it is worth something. It’s a speculative bubble. It’s a gamble. It’s not an investment.
If you want to invest in BITCOIN, spend US$2 and buy a small part like a lotto ticket. Of course, that US$ worth will come with US$5 to S$25 bucks in miner’s transaction fees.
What amuses me most about this whole crypto currency mania? These techies are spreading myths in the face of people who actually know how real money works and twisting the words to their own agenda of other technology experts.
They even say there is a huge conspiracy against crypto called FUD – Spreading of Fear, Uncertainty, Doubt by banks, government and wall street.
I’d put my faith in a successful businessman and a banker long before I do in a techie. I don’t go to a techie for financial advice.
This whole “all corporates are evil” and “governments are evil” nonsense that the cult of crypto spread is just asinine and stupid. When you need help, who do you pick up the phone and call? The police. Your bank if money has been stolen. Your insurance if you smash your car. Hardcore Libertarians and anarchists are idiots.
Even a guy like John McAfee who I admire, who speaks a LOT of sense on security knows little about currency and financial markets – he’s a security specialist, a mathematician, NOT a financial guy, not a currency expert. If he was, he wouldn’t have lost almost ALL his wealth from the sale of his company. He went for US$100 million to less than US$5 million on bad choices in 2009.
He even recently dropped a hint on how easily it would be to corrupt the ENTIRE #BITCOIN #BLOCKCHAIN network. ie. It’s vulnerable to direct attack to corrupt, erase “investors” wealth. I will chat more about this in my video.
Bitcoin fever to burn out in a “spectacular crash – David Stockman warned
Also, the disinformation regarding “BLOCKCHAIN” and “BITCOIN” is astounding.
They are not the same thing. One uses (I, and others would argue – really poorly) the other. BITCOIN cannot exist without blockchain, but not vice versa. It’s important to note that BITCOIN is NOT an investment in blockchain.
BlockChain is the system / database on which ALL crypto currencies run. Each currency (all 1300+ of them all run on their own separate database, their own BlockChain) Blockchain has a use. Crypto-Currencies in their current form are doomed to fail.
The only “conspiracy” out there is that the people who actually know business use common sense. Also, #NEWSFLASH – Elon Musk owns no BITCOIN. Neither does Steve Wozniak invest in it nor Bill Gates. Wozniak has made some off-the-cuff comments, but he doesn’t endorse one currency. They like the idea of the blockchain database, but do not endorse any currency.
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Jason Calacanis: Bitcoin Is A Bubble, Just Not Sure How Close It Is To Popping | CNBC
JP Morgan CEO Jamie Dimon: I could care less about BITCOIN | CNBC
Forbes: The Great Bitcoin Scam
The Bitcoin bubble is going to burst. Let’s promote viable digital currencies instead.
Bitcoin warning ‘Exercise Caution’: Securities & Exchange Commission (SEC)
Mike Hearn – Bitcoin Developer (2016)
The resolution of the Bitcoin experiment
Heisenberg Report: SEC Issues New Cryptocurrency Warning: ‘If You Lose Money, We Can’t Get It Back’
Forbes: 5 Questions Bitcoin Traders Can’t Answer
Jamie Dimon: You’re wasting your time with BITCOIN
“BITCOIN is kind of cute now.”
“there will be no government that will put up with this for long”
Money Talks: BITCOIN plunges after JPMorgan Chase CEO and other big names in business calls it a fraud.
Warren Buffet: BITCOIN is not a currency
Bitcoin nothing more than an anonymous money order / transfer system.
What Elon Musk Thinks About Bitcoin?! Ep 34
What the “Wolf of Wallstreet” Real Life Jordan Belfort thinks:
Bitcoin is creating a massive bubble: ‘Wolf of Wall Street’ Jordan Belfort
Bitcoin: What Steve Wozniak (Apple Co-founder) has to say about Bitcoin
“It’s not there yet”
“I’m not an expert on it”
“The BLOCKCHAIN technology has many applications”
NOTE: He doesn’t endorse BITCOIN, however.
Bitcoin’s 3 Fatal Design Flaws – Positive Money
Something Rotten In The State Of Bitcoin – Forbes
The Looming Problem That Could Kill Bitcoin
Bitcoin has proven itself to be a completely useless currency
Bitcoin Problems (PensionCraft)
Bloomberg TV Markets and Finance: M&G CEO Says Bitcoin Pricing Is ‘Definitely Mania’
RAY DALIO: Bitcoin is a speculative bubble
BITCOIN is a digital tulip bulb MANIA that will COLLAPSE
BITCOIN fraud on the rise
BITCOIN: What you’re not being told
From Feb 2016, Professor Ross Anderson from the University of Cambridge
“BITCOIN is not scalable”
Charlie Mungar on cryptocurrencies: “I think it’s absolutely asinine to even pause to think about them”
Steam stops accepting payments in bitcoins
“6 December, 2017 As of today, Steam will no longer support Bitcoin as a payment method on our platform due to high fees and volatility in the value of Bitcoin.”
Newegg permanently remove BITCOIN as a payment
BITCOIN vanishes after payment to DELL. http://en.community.dell.com/support-forums/customercare/f/4674/t/20006965
Morgan Stanley Says Investors Shouldn’t Buy Bitcoin. They Should Spend It
“Bitcoin acceptance is virtually zero and shrinking,” the team of Morgan Stanley analysts led by James Faucette wrote.
YouTube – Previous scams and “get rich” videos and other interesting videos:
Multilevel Marketing: Last Week Tonight with John Oliver (HBO)
Professor Robert Shiller Talks Market Psychology, Bitcoin And More (Full) | CNBC
Dr Shehar Bano of the Information Security group on HOW POORLY BLOCKCHAIN SCALES.