The Bitcoin Ponzi Scheme Fraud is based on the idea of some sort of robot computer miracle where a giant digital system in the sky keeps track of Bitcoins and their value and who owns them. All that needs to happen is for the computer network to stay up and running and the Bitcoin goes on and holds its value and stays in your Bitcoin Wallet forever — that’s the theory concocted by the venture capital people who started Bitcoin, bought the first many thousands of Bitcoins, and have enriched themselves as the Ponzi scheme went forward — until recently — when it has collapsed.
Here’s what is really true. There is no magical machine that keeps Bitcoin going. No network of digital signals that operate by robot. The truth is that Bitcoin totally and fatally depends on the “miners” who are peons which means human persons who must labor like crazy to keep the Bitcoin system cobbled together, not by a magical robot but actually by human cobblers — who are called “miners”.
The miners, to do their mining (keeping the system working) have to be paid. They can only be paid if the value of Bitcoins is greater than the cost of doing their mining chores. Those two lines just crossed. So now it costs more to do the mining chores than the value of a Bitcoin — which means that the “miners” can’t be paid —- which means that the entire system —- which is kept functioning by the miners, and not by some magical digital robot in the sky, collapses.
By contrast — Paper Bullion Bank Bills and my patented method to authenticate value documents or items — has no “miners” in it. There are no clever people that have to be paid to keep my system afloat. My system is not secretly labor-intensive like the fraudulent Ponzi scheme Bitcoin is and always was. My bank bills float with the London daily gold fix. I’m not telling you when to buy them, or when to use them. You decide that. I have always told everybody that gold is usually a disappointing investment from the perspective of buy-low, sell-high. Gold is way of preserving some buying power into the future. If you have a few kilos of gold, you will have some buying power no matter how long you live. That’s my proposition. I am not a gold pimping investment advisor. I am a person who feels that gold is a good form of money because it tends to preserve some buying power into the future.
But one thing is for sure — my product — Paper Bullion Bank Bill does not secretly depend, for its continuing value, on unseen and unmentioned armies of laboring peons who must be paid to show up and do their jobs. If at any instant you want your metallic gold right there in your hand just find a match and burn off the paper. The little yellow ball at the bottom of the crucible — that’s you gold metal right there in your hand. You can make a wedding ring out of it, or a gold round, or an ingot if you have enough.
I have no hypothesis about the value of gold being higher tomorrow than it is today. Maybe it will be, maybe it won’t be. You figure that out — not my problem. I say that gold will always be money — it will always carry value into the future, and my Paper Bullion Bank Bill is a way to make gold into spendable money again as it was during the first few centuries of capitalism. My bills are better than gold coins because they can be authenticated quickly and cheaply. They are better than paper money because they have gold in them. The are better than Bitcoin because they have no “miners” in them. They are not going to collapse when the miners can’t be paid and quit.
Lenders Are Thriving on Bitcoin’s Bust by Aiding Both Fanatics and Shorts
As a growing number of cryptocurrency ventures struggle for funding, cut staff or shut down, all is well in one small corner of the industry: lending.