'A great deal of intelligence can be invested in ignorance when the need for illusion is deep.' -Saul Bellow, To Jerusalem and Back

Bitcoin Lost Its Purpose Years Ago

by Ethan Glover, Sun, May 21, 2017

What if Satoshi Nakamoto is just a group of scammers who targeted the libertarian community with a pyramid scheme called bitcoin?

Every time bitcoin's price goes up, my social media feeds  fill up with posts from people like Bruce Fenton and Jeff Berwick bragging about rising prices. Comments are always filled with, "I should've bought the last time you said something!" But Berwick, a known scam artist, and Fenton, a bitcoin "investor," have no interest in anyone making money on bitcoin.

When they're recommending people buy, it's always at a peak price. Do you think they're buying at the same time? Of course not. Do they watch markets and tell people when to buy/sell for profit? That'd ruin the chances of profit anyway. If everyone were making money on bitcoin, no one would make money on bitcoin.

What value do they bring when they get people to buy? Economic freedom? Ending the fed? No realistic thinking person could reasonably believe that. There is no current benefit to buying bitcoin other than arbitrage. When using it, you lose a portion of your money on transaction fees. (Something banks moved away from years ago.) And there's not a realistic amount of places to "spend" bitcoin. Except through a game of currency arbitrage.

The bitcoin salesmen like Fenton and Berwick have no interest in bringing any value to any one. They and anyone who is smart enough to be or make up Satoshi Nakamoto realize that creating a "decentralized" currency is not a revolutionary tool of change. Nor do they want it to be. If bitcoin were somehow able to destroy government currencies, scam artists stop making large amounts of money. But that was never going to happen anyway.

The bitcoin white paper contained just the right kind of  words to appeal to a libertarian audience. An audience ready for a new hope after the failure of the end/audit the fed campaigns. Bitcoin's creator(s) started small scale in an obscure mailing list so they could maintain a majority control over trade. (Steemit had this built into the platform itself.) It's important that the few at the top hold enough of the currency to manipulate markets. Once they get people buying by talking about peak prices, they can dump large amounts, kill the price, buy again, and start anew.

It's one thing to arbitrage stocks for companies you have no involvement with. It's another to use influential positions within an industry to actively market a stock (or bitcoin) at peak prices for no other reason than arbitrage. 

Ross Ulbricht built an empire with bitcoin at the foundation, he made a fortune helping people. Con-men like Bruce Fenton and Jeff Berwick provide no service to anyone aside from telling them to spend their money on nothing at the wrong time. If they were doing anything other than stealing they wouldn't be making any money.

Fenton and Berwick do not provide a service when they talk about "bitcoin success." 80% of bitcoin transactions are arbitrage made by a small amount of people through thousands of sock accounts. In the few places you can spend bitcoin, it doesn't come close to the convenience and timeliness of normal currency. Bitcoin is NOT a success. It died the day the Silk Road died. With Silk Road, bitcoin had an important purpose. Today, it's an empty shell. Useful only to financial criminals.