As yesterday was “stress awareness day” and a hacker at some rightwing-nut publication sold my cell number to some phishing lab and my whatsapp console blew up with bitcoin scams I’m compelled to write if only to self sooth.
The downfall of modern society might be when marketing meets social engineering and collides with speculation.
In an interview I watched Kiyosaki told the interviewer… (paraphrased) “when you learned what’s in the hot dog you stop eating it … when I learned how the fed worked I stopped investing” and then he went on to say “I invest everything in gold, silver, and bitcoin”. While the first part is quite profound the second part is either BS or he does not know how bitcoin works.
Bitcoin is a ponzi and/or pyramid scheme. It favors early adopters and more adopters are needed to push to price up.
There is nothing anonymous about it. Entities like miners, exchanges, OTC, escrow, etc are still required, in most countries, to KYC (know your customer). Any place there is a proxy someone is logging something. (see patriot act)
Here in America BTC is ALWAYS compared to the USD. Most bitcoin acolites thing the USD will crash, however, depending on your country of origin that’s going to be the exchange rate.
Bitcoin core APIs do not know anything about currency exchanges. What’s interesting here is that it depends on external 3rd party systems that “they” think are going to crash.
The exchanges are manipulating the market. There are examples of suspending cashouts whether that’s to directly manipulate the market or because insufficient cash on hand.
Miners are currently generating 5GB of data per day. Since inception they are 350GB. What will happen if bitcoin goes from about 2% to 50% transactions per day? First of all there is a limit to the amount of validation that can be performed in a day (TPS). And then what happens when the miners run out of disk space?
I’m only scratching the surface… but the more I learn about how it works the more I realize I want nothing to do with it.