The Bitcoin is quite costly to make, and to maintain. A lot of computer power, voltage, and labor is involved. They talk about Bitcoin mining as if the coins were like nuggets dug out of the Earth, but the truth is that most of what the “miners” do is maintaining the ledger book based on blockchain, and that requires special skills to smoothly establish and keep up new bitcoins as they enter the accounting ledger, which is a community-based information device.
Right now bitcoins cost more to make and maintain than their value on the world market. This means the “community” falls apart, because the “miners” are not paid for their work, and there’s no central organization there to ensure that they will be paid in the future.
Failure to anticipate and provide against this possibility is what makes Bitcoin a fraud and a Ponzi Scheme. The major investors, many of whom are from Silicon Valley, made huge profits as Bitcoin was ascendant in the realm of innovative currency. They owned many of the original bitcoins, and sold them for large amounts to gullible later investors. This is how a Ponzi scheme works. It’s a pump, and then a dump. The fraudsters get out before the whole edifice collapses. They have the profits in real cash, not in bitcoins. The people left holding the bitcoins are holding an empty “bitcoin wallet”.
The stated intent of bitcoins was to create an alternative currency that was not dependent on central bankers, or on any single nation. It was going to be a global community based currency — in many respects like the Paris Accords or other initiatives in the environmental movement.
Again, though the Tragedy of the Commons has stepped in, as it did with Marxism, Leninism, Maoism, Socialism, and Democratic Socialism. When you rely on a community to get something done, often that things does not get done. When we sent me to the Moon and brought them safely back to Earth, we did not rely on a community of cooperating stakeholders to get that job done. It got done because NASA was in charge, not a commune of miners.
Paper Bullion Bank Bill actually does what Bitcoin set out to do. Once the bills are made, no community is required to maintain their value. They are not internet or blockchain dependent. They are not labor intensive to keep track of and keep valuable. When the miners walk out all bitcoins everywhere will have a value of zero. But, no matter what happens all Paper Bullion Bank Bills will always have their face value of gold bullion in them. As bullion they can be verified by using simple x-ray fluorescent techniques, or if you like, you can burn off the paper and have your metallic gold right there in the crucible in about 5 minutes.
The fraud product, bitcoin attracted venture capital money in the billions of dollars. The real McCoy, that actually does the job bitcoin said it would do, has not, so far been able to attract $8 million to own the only patent on the method to authenticate Paper Bullion Bank bill (see patents.google.com at Appl. No.: 14/999,947 sometimes called Pub. No.: US 2018/0018845 A1). The venture capital community will eventually get wind of the new patent on the far better product. When that happens they will show up at robertfentongary.com to read more about new inventions, and they will come to firstname.lastname@example.org to state their offers and propose business agreements. On April 1, 2019, the price for the patent goes up to $16 million, so now would be the time to get a bargain on its acquisition, and it can only be sold one time, to one assignee, so once it’s gone, it’s gone, which means your competitor now owns it, and will use it to take market share away from you.
The competitor will make gains in overall market share of banking customers, and in wealth management (private banking) most specifically. Also in international trade, wills and trusts, bailments and auctions, and letters of credit. All told, you will wish you had found the insight, courage, cash, and energy to read my patent, and buy it from me when you could, and a priced to move level.