The top three LIES that Bitcoin promoters tell themselves to “keep the faith” in their digital Ponzi scheme
When Bitcoin was first launched in 2008, many financial analysts claimed it heralded a new age of economic viability. Crypto-currency, as its name suggested, offered users an entirely digital and anonymous source of income. In the countries that accepted it, bitcoin could be used and traded like actual cash. One of the advantages of bitcoin was that it was a currency completely divorced from the central banks and other financial institutions. The currency was organized through a network known as a blockchain which records every single transaction, much like a traditional ledger.
Over the years, bitcoin has been gaining popularity, and with good reason. People saw a world devoid of financial scams, and a chance to be “free” from central banks. Yet, it is important to recognize the dangers that come with buying bitcoin. While not exactly lies, there are three incredibly unsafe assumptions to keep.
- Central banks would just let bitcoin run them over – Understand the nuances between “revolution” and “revolt.” The former occurs when a union is successful in their endeavor, the latter describes a failed attempt. It is exceedingly naive to think that the central banks would just stand-by and watch their power be usurped. Mike Adams, the Health Ranger, noted that there are two main goals of central banks: the first is to protect their assets and second, to expand their governance. Bitcoin promoters who speak of the currency as a revolutionary idea may need to keep themselves in check. It is always good to be a realist, and here is what is real: central banks are powerful.
- Central banks can’t disrupt bitcoin – This is one the more delusional assertions bitcoin promoters can make. These people place too much trust on the online environment; assuming — quite childishly — that nothing can manipulate a bunch of codes and numbers in cyberspace. Ruining bitcoin is actually a simple economic process. Central banks can merely create counterfeit currency to buy bitcoin sporadically over time. This massive scaling would push prices up until the currency reaches a “bubble.” Recall that current iterations of bitcoin only allow it to handle seven transactions per second. This is a little slow. Anything more than that and you have a massive jamming problem. This is a reason why bitcoin can never be a world currency. Central banks know this and can clog up bitcoin trades by conducting a monstrous coordinated sell-off simultaneously of about five to ten sell orders per second. This would pop the economic bubble and drive the cryptocurrency to almost zero. Immediately, this would wipe out millions of assets. One thing to recognize is that the value of bitcoin is determined by the last price of the day. So, if, for example, the price for bitcoin was at $3,000 each one day but it stooped to $300 per unit on the same day, everyone would have lost 90 percent of their currency value. This would trigger another wave of automatic sell orders which would further flood the transaction system. In human time, we are talking of millions of dollars lost in mere seconds. (Related: Bitcoin miners “holding on with a death grip” as Bitcoin “pipe dreams” appears hopelessly obsolete, slow and fractured: An interview with Kevin Lawton.)
- Central banks operate on ethics – Please, for the sake of your own sanity, remove the rose-colored glasses you have worn since 2008. Bitcoin can be easily destroyed by central banks. Not only do they unlimited funds (they can literally print out free money), they do not carry a shred of integrity in their system. The central banks would do everything in their power to maintain their place in the world. Imagine how dangerous a combination that is. Representatives of the central banks are told to increase volatility and cause massive losses and are given infinite wealth.
These points are not made to disillusion people or discourage people from buying cryptocurrency, but to help them be more aware of what they’re getting into. We like to say we live in a world of information, but more and more each day, we are fed lies and half-truths. It is time to wake up, and be careful.