Companies can't produce bitcoins. bitcoins must be earned through mining or bought. Anyone can create their own alternatvie cryptocurrency if they like, but without a substantial network of users it's of no consequence.Different companies can produce bitcoins etc
We don't need regulators to count them because the blockchain that contains the history of all transactions and thus balances of all bitcoin address is public. Right now there is exactly 18,682,542 bitcoin in circulation.and i don't see central regulators counting the bitcoins etc available in the World.
Some cryptocurrencies are scams, but bitcoin isn't. What you're missing is even a basic understanding of how it works.To me this is a clear Ponzi Scheme or am I missing something?
Point {1}. Yes they can and it costs environmentally. I read an article in an italian newspaper that to produce a bitcoin it takes cpu-power and timeCompanies can't produce bitcoins. [...] {1}
We don't need regulators to count them [...] {2}
Some cryptocurrencies are scams, but bitcoin isn't. What you're missing is even a basic understanding of how it works. [...] {3}
@DazedInPontoon which ones?Some cryptocurrencies are scams
You can wade through about 1000 pages of alt-coin announcements here https://bitcointalk.org/index.php?board=159.0 I presume the vast majority of them are pre-mined trash. It's a fairly simple concept - create a coin, award some to yourself up front, launch it, hype it, dump your bags. Repeat.@DazedInPontoon which ones?
You will get many armchair punters like myself to go on and on about this subject. In many ways its supporters resemble a cult. I recommend you refer to professional experts like Professor Roubini or Robert McAuley writing in the FT:Can someone explain to me how any cryptocurrency can be given value please?
Robert McAuley in the FT said:At today’s higher bitcoin prices, the hole is growing faster. About 900 new bitcoin a day require most of $45m a day in electricity. Thus, the negative sum in the bitcoin game is in tens of billions of dollars and rising at over a billion dollars per month. If the price of bitcoin collapses to zero, the gains of those who sold would fall short of the losses of holders by this growing sum. To liken bitcoin to a Ponzi scheme or a pump-and-dump scheme, both basically redistributive, is to flatter the cryptocurrency system.
To conclude, an economic analysis of bitcoin must recognise its uniqueness in the history of manias. As an object of speculation, bitcoin is unprecedented in the degree to which there is no there there. This post-modern mania features big prices for entries on nobody’s spreadsheet. A zero-coupon perpetual has arrived not as a joke but as a trillion dollar asset. Unlike a Ponzi scheme, bitcoin cannot end in a run. In a crash, the holders of bitcoin will collectively have lost what they have paid the miners for their bitcoin. This sum may be not far from the sum originally invested with Madoff, after accounting for inflation. But bitcoin holders will have no one to pursue to recover this sum: it will simply have gone up in smoke, a social loss. The holders of bitcoin would then only wish it had been a Ponzi scheme.
There are 21m bitcoins and to all intents there will never be any more. The "system" releases these every 10 minutes and at this stage has released about 19m of them. Note that these are released on schedule by the system and are not somehow “mined” like precious metals. Cultists make a big deal of this scheduled limited supply. But if the experts are right and bitcoins are worth nothing, what does it matter how limited the supply is?Different companies can produce bitcoins etc and i don't see central regulators counting the bitcoins etc available in the World.
See the bit that I have highlighted in Robert McAuley's article above. It is actually much worse than a Ponzi scheme, in his opinion and who am I to disagree with him.To me this is a clear Ponzi Scheme or am I missing something?
The Galileo fallacy.I went to the cinema last week (hurrah) and saw an advert I hadn't seen before. It was quite long, and pictured someone (maybe famous, I'm no good at faces) walking through a display of all the exciting things that humans have done in the past that would have been thought fools for, from space exploration downwards. It was quite stirring to watch.
The final message was that anyone daring would ignore those critics who said a venture was too risky... and buy cryptocurrency !!
I was horrified by the way that this is being presented to people who may have very little money to lose. I think it speaks of desperation and seeking for "more minnows" to prop up the "investment".
That is an interesting move, but appropriate IMO.
London Mayor urged to implement promised ban on gambling adverts on TfL – and to extend it to crypto companies.
Cryptocurrency ads reach record levels on London transport
Mayor urged to implement promised ban on gambling adverts on TfL – and to extend it to crypto companieswww.theguardian.com
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