Cryptocurrency Is a Giant Ponzi Scheme

Ive been a critic of bitcoin and cryptocurrencies from the start. My main complaints are two. First, crypto doesn’t solve any problem I have. I am quite happy to use other traditional electronic transactions, like, uh, credit cards. Secondly, I have no idea how to value a bitcoin or other currency. I can value stocks, bonds, options and other realiity-based assets, including government currencies. This all seems well established and mostly on the up and up. It is also policed, which I suppose some people consider a negative.

I am less informed perhaps on the details of how all the crypto financial plumbing works. A good article in Jacobin goes into detail about the necessary mechanisms for converting to and from crypto to traditional currency. If this doesn’t worry you, then I suppose nothing will.

Cryptocurrency Is a Giant Ponzi Scheme

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