It is not really shocking that some politicians are against bitcoin.
Introduction
I was planning to do a post on protein folding today however as is often the case a few online discussions made me almost spit out my coffee in astonishment.
I am often surprised by how people who seem to be otherwise intelligent know absolutely nothing about how our modern monetary systems work.
That is the "kind" interpretation of their words and actions.
More cynical minds might say that they feign ignorance because the current systems benefit them.
In this case I was surprised to see famous actor James Woods comparing Bitcoin to a Bernie Madoff style Ponzi scheme.
Around the same time I saw a report in which Indian politicians were denouncing bitcoin legalisation due to the "crime risk".
Now there is an argument to be had on whether "legalisation" is a good or a bad thing (it could mean greater regulation) however what struck me were the crazy kind of arguments being made by the politicians against Bitcoin:
Bitcoin Increases Crime and Corruption?
This is another common argument and seems to be one of the arguments that some rather clueless (or perhaps villainous) politicians were making in the Indian situation.
Yes Bitcoin can be used for criminal purposes but so can most other forms of money or goods.
The biggest and least easy to trace source of crime and corruption is actually government issued cash.
In many ways, new techniques mean that bitcoin is actually easier to trace and follow - the information is available on a public ledger.
The thing is any type of item that has value can be used to commission crime. I have even heard of pieces of artwork being used for this purpose.
After all, there is no limit to human ingenuity and resourcefulness when it comes to crime.
Given how some of the most corrupt people in India are the politicians themselves I can't help but think they want to maintain the status quo so that they can continue to do what they do with less scrutiny.
It is much harder to track cash transactions. This was the supposed reason for the removal of certain denominations of currency from circulation in India last year.
If these transactions switched to Bitcoin they would be visible to everyone.
The Bitcoin as a Ponzi Argument
This is one of the oldest arguments that Bitcoin critics have made.
So what is a Ponzi scheme? - Wikipedia has a nice summary:
"A Ponzi scheme is a fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned through legitimate investments or business activities.
Operators of Ponzi schemes usually entice new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent.
Ponzi schemes occasionally begin as legitimate businesses, until the business fails to achieve the returns expected.
The business becomes a Ponzi scheme if it then continues to operate under fraudulent terms. Whatever the initial situation, the perpetuation of the high returns requires an ever-increasing flow of money from new investors to sustain the scheme."
The thing is nobody runs bitcoin - it is not making any claims on returns. Further this interpretation stems from a fundamental misunderstanding of what bitcoin is.
Bitcoin is not a business, it is not a company. It is a technology and a network.
In many ways it is more similar to a commodity like gold. People value it because they value the underlying network and it's ability to store value (as well as transmit it).
I also think such statements prey on people's ignorance and bias which make them believe that anything that is open to speculation and volatility MUST be a scam.
Just because something is open to speculation does not make it a Ponzi. Nearly all types of assets in the modern world are affected by speculation and have some level of volatility - even the most solid stocks and shares. It is part of how markets work.
Unlike paper money which can be printed at will (and created out of nothing), bitcoin requires ACTUAL work to mine it - which is a lot more similar to gold.
The terms of creation are fixed and baked into the system - there is no room for any fraud in the way that occurs in many methods of conning people.
When examined closely it is pretty clear that Bitcoin is NOT A PONZI scheme and that people who suggest this are either being ignorant or are attempting to spread misinformation due to their own vested interests.
We should not be surprised though - some people have always done this and likely always will.
Bitcoin and cryptocurrencies in general threaten to disrupt and democratise the whole economic system. It is natural that those who are benefiting from the current system might have a "problem" with that.
Conclusion
It seems to me that governments are struggling with the implications of a technology which could disrupt their ability to enrich themselves.
The more corrupt a nation is the less sense it makes for the politicians (who are often one of the most corrupt groups) to support a technology like bitcoin which is aiming to democratise the financial systems that have failed the vast majority of their populations.
Further, ignorant people with large audiences (like Woods) get wheeled out to support this agenda.
I suspect as time goes on we will have more and more celebrities talking about how "Bitcoin" is bad and dangerous.
I would not be surprised if vested interests such as banks are already enlisting these kinds of shills to put out their own message - i.e. cryptocurrencies bad fiat money good.
Don't fall for it. If you need a celebrity to tell you if something is good or bad then something is very wrong.
Thank you for reading
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Resteem and upvote.
Very good article, I will follow you.
Thank you:)
boooo.. they're saying its bad cause they want to push the back up crypto they have
crypto politics on the rise?
They don't like it because they can't control most probably.
exactly .. I won't be surprised if the back Zcash up too
Thanks thecryptofiend.. Very good, the difference between you & me and almost all other Steemers and the general public is that we've done our research on a subject that they don't even know exists, let alone understands.
Vested interests always poo-poo new things, especially when it threatens their 'profit and dominance' of an existing situation..
You can bet your bottom Steemdollar #SBD, those same people will be the first to jump on board when it becomes undeniably mainstream. only they won't really be able to control and dominate it this time ! hahahahaha
"The biggest and least easy to trace source of crime and corruption is actually government issued cash."
This quote needs to wheeled out in a big gold carriage every time anyone mentions bitcoin / altcoin and the link to crime
Thank you. Great answer!
E'steemed !
Thanks!
They dont like transparency and empowered people!
yeah they don't like people to think for themselves, let alone act independently or see beyond the MATRIX.. I think that's why they banned LSD
Great piece @thecryptofiend. I definitely think the naysayers are driven by fear, uncertainty, and doubt. I think education and eventual mainstream adoption of blockchain for enterprise applications will cure most of this... but you will always have Negative mindsets who hate the decentralisation which can remove power and control from the elite and spread it to the rest of the world-
I think you are right. They will only believe it when it has replaced the fake fiat system and even then they might maintain a level of denial.
Oh i agree. Disruption can be messy... often is at the beginning of any industry. But this disruption (because of the currency aspect) touches EVERYBODY. We will see some interesting times ahead no doubt! 😲😲😲
For sure!
They will never understand, he's just mad he did not get in at $0.25
Quite possible!
Very well said thecryptofiend! I believe this misinformation campaign is only just beginning. If you think about it, politicians hide most of the things they don't want you to know, but if they are REALLY bothered by something then they will turn against it with all their will.
Take the whole #fakenews as an example. They were quite pissed at the fact that some people were doing real journalism and made it a public issue. Now people are doing real banking and it's attacking them where it hurts most.
It's funny how I just had a conversation with a friend about this Bitcoin "criminality issue" and how people often blindly believe everything the government says. That needs to change.
Great article you earned yourself a follower :)
Thank you so much!
It all comes down to control. Their complaints that they list are not their real issues with it, in my opinion. To me, it seems more likely that it's just something new that they don't understand and can't control, so they fear it. They go looking for bad things to say about it.
It's similar to parents in the 80's and 90's telling their kids using the computer will rot their brains. To some extent, i approve of trying to get kids outside. But honestly, think about the salary difference between kids who became computer literate early on vs. the ones who didn't.
Very good points. Fear and lack of control likely do play a part.
Great post!
I did quite a bit of research on Bitcoin last week. (Not that i'm completely new to btc ) I just didn't found any articles explaining it this good.
Thank you that is very kind.
it is because the current monetary system favors them. They know the truth...people need this knowledge, resteemed!
Yes quite possibly, thanks!
anytime
Interesting article. Thanks.
You're welcome!
@thecryptofiend I never listen to celebrities I dont need them to make any decisions in my life, celebs dont have much interest in bitcoin or any crypto as they already have a great flow of cash.
Yes exactly.
If someone doesn't understand where something derives its value or how it creates it, of course it would look like a Ponzi scheme to them. It's an admission of ignorance at this point, when a simple google search and 5 minutes of reading could explain how cryptocurrencies work and the value of decentralized systems.
Quite often I think it is a deliberate denial of value rather than ignorance.
We shouldn´t be surprise because most of celebrities don´t even know what cryptocurrency is .
True.
Bitcoin is not a ponzi scheme; however,federal reserve notes are the greatest ponzi scheme in all of human history. Federal reserve notes can be used to purchase and also manipulate bitcoins. A money junkie could plot a dollat bitcoin ponzi scheme , but we could stop them ?
Yes and not only that those fed notes are create value out of nothing.
Congratulations @thecryptofiend!
Your post was mentioned in my hit parade in the following categories:
The central banks are a ponzi scheme. lol
Gotta love this low-brow shills.
Two types of people who need to keep their free advice (and thoughts) safe and private: politicians and celebrities.
Agreed!
Thanks for posting that Buffet doc. Subbed due to that. Plus trying to learn more about his market. ;]
I was very impressed with him. I didn't think he would be so likeable.
I certainly believe with some Celeb opinions it is not ignorance or lack of brain but indeed other things like they gain sth for such an opinion piece. Thanks for another Fab post
You're welcome:)
Great article! The government doesn't like competition.
No they don't.
I've always liked James Woods as an actor. But I think he is showing just a knee jerk reaction that is common. Ok, so its not a ponzi scheme, James. But in my book, its still FIAT. Crypto was invented yesterday so none of us knows the future. Gold and Silver have a 5000 year record of being money all across the globe. I like and save Crypto but I stack metals. :)
There will always be a place for actual metals and materials.
Well, you just don't know what a fiat currency is apparently.
Let's be real, you use youtube rev and cryptos to stack metal. The ugly truth....
FIAT is a currency declared by a government. It's like FIAT in that it has no intrinsic value nor is it a trade-able commodity. Metals will always be money. Yeah I stack...and its beautiful...not ugly. :)
Bitcoin isn't declared by the government; therefore, not fiat (not sure what the cap lock is all about), thank you for contradicting yourself.
Also, it is traded, so I'm not sure how you think it is untraded. Fiat currency is also traded and is traded for other currencies.
Nice post friend, If only most politicians in my country knew and understood how crypo currencies worked, they would have embraced it and maximized it to the fullest..it would help them execute their both developmental and corrupt practices efficiently.
Yes I think so too.
To take it another level - The Bolivian government arrested 60 people for conducting training/seminars on investing in digital currency.
I do have to say, the company was apparently shady so its probably good they shut-em down, but Bolivian gov't has banned the use of bitcoin and crypto by its people. Crazy.
Wow I didn't know about that. I suppose they can try to ban it but I'm not sure it will work.
Wow...but I expect nothing less from many of those south american governments. It's a different mindset. While many western mindsets range anywhere from "Learn about what you don't understand" to "Be skeptical of what you don't understand" In many of the SA countries such as Bolivia, its automatically "Hate/Kill what you don't understand"
nice...u deserve resteem and upvote...
Thanks!
u r welcome...will always support your posts...
You are very kind:)
indeed....hehehe...thanks for your comment upvote as well...
most people dont like politicians so it evens it out
Lol maybe.
As bitcoin continues to soar in value, putting to shame all the nay-sayers from back in the day, it's easy to satisfy your own frustration in not buying it back then by saying "eh it's just a stupid scheme".
Good point! I suppose it is a form of trying to resolve cognitive dissonance.
There are many scam sites. Indeed they are afraid of the future where everyone is free of paying taxes and cruelty by banks.
I enjoyed reading your articles. I like that Bitcoin makes those slimmy creatures nervous! Aloha!
:)
If a politician loves bitcoin does it mean he is not crooked.
Lol not necessarily. It is almost like a Zen Kōan ;)
Zen Koan. Have to google that.
It is a phrase that is designed to provoke enlightenment:
"If a tree falls in a forest and nobody is there - does it make a sound?" - that sort of thing.
So one could say "If a politician believes in bitcoin can they be corrupt?" ;)
Another great piece, my bro.
The one thing most humans are best at is following each other. The concept of "herd mentality" is a very real one and usually when a celebrity makes a sweeping statement such as "Bitcoin is bad for us all", the mass flock will migrate to their unfounded and unsubstantiated opinions.
The few stragglers that stray from these masses I consider to be us, the early adopters who actually think independently from the so-called "norm". The very fact we are all here on this platform right now shows that we are a united entity against accepting such pathetic drivel as "Crypto has no intrinsic value" or "Bitcoin is a ponzi scheme".
Time usually assists in eroding this frustrating "resistance to change" notion and I feel it is that very same thing that will show the general public that crypto can and will work economically within a societies on a global scale.
Just give it a few, short years, my friend. :)
Thanks mate. Yes I don't think they will be able to stop these things.
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They can't control it, they can't manipulate it, they can't use it as a weapon against humanity, so they hate it. End of story.
Yes.
They don't know. They just don't know... But they should know.
Or maybe they do know and they are pretending not to because it suits them!
Yes. Could be any number of reasons.
Very cool post...I like it :)
Thanks!
you are welcome :)
They can't like it cos it won't make their fraudulent acts go seemlessly.....
Exactly or at least it will make them more open since they are visible on the blockchain.
Yes , transparency!
None of this really comes as a surprise does it?
Thanks for the cute puppy.
No it doesn't. You're welcome choosing the photo at the end is my favourite part!
If anything, take some comfort in the fact that The Powers That Be consider it enough of a threat to attack it.
Yes that is a good point.
US Social Security is a Pozi scheme. Bitcoin is a voluntary money, and governments fear that. Look at what they did to Bernard von NotHaus after a decade of assuring him he was within the law with his Liberty Dollar. "We changed our minds. Sound money is a special kind of terrorism now."
Yes - I didn't know about Liberty dollars will need to look that up.
there's not too many of them :)
Great read, thanks!
You're welcome!
All I know is Bitcoin scares me, Its new but there's nothing going to stop it that's for sure
There is no reason to be scared though. I think it is natural to be wary at first because we are not normally allowed to take responsibility for our own money.
That's true, its like everything else the more you read about it the clearer it becomes :)
Yes and you just get used to it.
They are afraid of losing the Taxes Farm.
Possibly but I think people will still pay taxes.
Unless they don't want to. What do you think would happen if all people stopped paying taxes? Billions of people against a small group..do the math
I don't think that will happen though. People want roads and infrastructure that works.
Too many people "just doing muh job" if you know what I mean.
:)
Heck, many from the crypto sphere don't like bitcoin. We do have to accept the fact though that 3 companies in China do have the upper hand in transactions and issuing.
On another note. I have a draft titled "everything is a ponzi scheme" due to the nature and philosophy of capitalism. When there is a crash the small guys pay and the top guys make even more. This is true everywhere.
I believe people criticize bitcoin because they are afraid. If something is unknown then it must be dangerous. Basic human nature.
This is a good thing though. It means acceptance is just around the corner.
Yes and Bitcoin is not perfect of course. I think some time back Dan was talking about some of the problems of centralised mining. It is still a lot better than the old systems though! Let me know when you post - a controversial discussion could be good to get people talking!
Υeap, will do. I have a couple of them coming.
Of course the rich and famous don't like it, hey have no control over it and that is ultimately what their power is all about
i was equally shocked when i read your article about james woods calling it a ponzi scheme at least its better than his twitter account and facebook ,at least steemit pays its investors rather than twitter or facebook who keep all the money for themselves .hes either very ignorant about it or theres something very fishy.
True although some wealthy people are embracing the possibilities.
Jimmy hates it because he doesn't want to lose that Amex with no spending limit. But wait wouldn't that cause hyperinflation?? Creating unlimited virtual credits??
Lol! Also that moustachioed photo is hilarious.
I'm surprised that warren buffet doesn't like it, he comes across to me as an honest and intelligent man
I haven't, i'll be sure to check it out, thanks
You're in for a treat :)
they're all scams but the biggest of them all is the Federal Reserve and the whole nine yd. but what if you choose to be on the safest side because this is what we have.. :)
The whole Fed thing has never made sense to me.
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ohh sorry I was just helping out a friend.. she put so much effort into her post.
It's OK just be careful some people flag for that! I will give it a look when I have a moment.
ohh thank you so much..
Great stuff! Keep it coming.
Cool thank you!
yes exactly the same good post
Thank you!
Great read @cryptofiend!
Thanks!
Excellent post dear friend @thecryptofiend the truth does not surprise me, anything that is presented that they can not manipulate, bribe or profit will always disagree.
Thank you very much for this excellent job
you have a good day
Thank you!