However, an increasingly popular insult finally caught my attention because it inadvertently undermines the bitcoin battalion’s selfless goals: “Enjoy poverty.”
This joke has become so popular in the cryptocurrency world that a song was written in its honor. It is also printed on some T-shirts. This insult is aimed at people who, like me, don’t deal with cryptocurrencies, whenever they show some suspicion. Whether this criticism is justified or not, the dominant view is that the price of money will continue to rise forever, so people who don’t buy it will sink into poverty, and those who invest in it will be extremely poor. rich.
If the cryptocurrency system seems like a Ponzi scheme, that is because it is. Although Bitcoin lacks some traditional features such as boss, central manager, or money transfer, other features are available. For example, those first entering the game must be involved with other users to ensure the continuity of the process. Many of them classify themselves as “digital currency experts” and say that these currencies are the solution to some financial and economic problems that are often outside their jurisdiction. For example, well-known bitcoin miner Anthony Pompliano shamelessly tweeted to his 1 million followers: “Every bull market, i.e. a rising market, should (inspire) a new class of crypto enthusiasts . Instability is the name of the game. “.
In this context, Martin Walker, director of banking and finance at the Center for Evidence-Based Management, said: “Technically, the cryptocurrency system does not work as a scheme (Ponzi), but the result is the same.” He explained: “The greatness of playing cryptocurrencies is that you don’t really need to have any income to pay anyone, and therefore you don’t run out of money because you trust people here (numbers are rising). ) ”.
What cryptocurrency miners don’t explain, and some of them seem to misunderstand, is that it’s a zero-sum game: in other words, not all of us can get rich here. However, when you listen to “expert commentary” you will see they don’t recognize it, or how this system is biased towards enriching only those at the top of the pyramid. On the contrary, the whole analysis revolves around “financial democratization”, “increasing economic freedom”, or the fight against evil central banks that seek to increase the value of our money.
Finally, when El Salvador announced that it would use bitcoin as its official currency, I was bombarded with messages about how it would increase financial integration, boost economic growth, and, of course, increase the price of bitcoin. .
What these senders don’t seem to mention is that more than 89% of the 21 million “bitcoins” that may exist someday were originally created or “mined” and are currently in other people’s wallets, ready to be thrown away by a novice. , for the purpose of profit. Nor have they bothered to eliminate the huge wealth gap in the world of cryptocurrencies. A recent Glassnode report showed that 2% of network organizations control nearly three-quarters of all bitcoin.
In this context, financial and economic commentator Francis Coppola said that “Bitcoin inequality is far worse than any official currency” and added, “Because it is not covered by taxes, it becomes very difficult to redistribute it. ”
So why do comments avoid addressing all of these points? The problem is that “cryptocurrency experts” get this “experience” by immersing themselves in the game. You rarely find that one of them is not an investor in cryptocurrencies and therefore is not financially motivated to keep their prices rising.
Pompliano believes there is enough reason for you to listen to such voices, as he tweeted recently: “You should ignore the opinions of people who are not involved in the game.” However, he’s one of those “experts” you shouldn’t listen to, and the reason for this is that if bitcoin is widespread, it will take more people to buy money that some actually own, which will. collectors ancient cryptocurrencies like him. among the world’s elite New super-rich.
Luckily for all of us, Bitcoin has many other problems, including thousands of competitors. So, it will never happen.
(Jimima Kelly* – “Financial Times”)
https://www.ft.com/content/26283f09-c3df-4c7e-814c-65083b063d8a
* British writer specializing mainly in the offshore stock market, cryptocurrencies and financial technology. Former journalist for Reuters. He also wrote for The Economist. He currently works for the Alphaville Financial Times. It is a daily news and commentary service addressed to financial market experts.
