A decentralized Ponzi scheme of unprecedented scale

After China's ban on the use of Bitcoin, it has risen again and again, breaking through a new high of 60,000 US dollars, which seems to be exhausting. (AP)

We want you to know: According to the author’s analysis, cryptocurrency is a decentralized Ponzi scheme of unprecedented scale, and it is also a trick to trap money. But “scams” do not mean “scams.” When the government and entrepreneurs all jump in and play together, the so-called “scams” are transformed into “financial technology,” and they may also be the stars of the future.

Since the Chinese mainland banned cryptocurrencies at the beginning of this year, Bitcoin plummeted 50% from USD 63,000 to nearly USD 32,000 in one month. Three major events followed, causing Bitcoin to surge to a record high:

The first is the U.S. Internal Revenue Service (IRS) in May, requiring cryptocurrency platforms to hand over customer transaction records in order to recover transaction taxes. The cryptocurrency market has heard the news of a surge[1]; the second is the U.S. Securities and Exchange Commission ( SEC) discussed in August whether to approve Bitcoin-related “Exchange Traded Funds (ETF: Exchange Traded Funds)”. Finally, the SEC agreed that the first Bitcoin futures “ProShares Bitcoin Strategy ETF” would be listed for trading on October 19. Bitcoin has soared after hearing the news and hit a record high of US$64,889[2]; thirdly, major global manufacturers have jointly promoted the “Metaverse” plan to establish a virtual world parallel to the real world in the future. Cryptocurrency is also called ” “Virtual currency” can be speculated at sky-high prices in the real world. How can it be possible to let go of this opportunity to speculate in the virtual world?

How high is the definition of new technology success? Is it even more profitable?

Three consecutive bullishes made the price of Bitcoin hit a record high. Every time when Bitcoin rose sharply, netizens would leave a message on the Youtube Qubo Technology Classroom channel. Don’t be sad because I didn’t make a profit! Here I would like to state first, I just clarify the technical principles and dismantle the tricks of various cryptocurrencies, so that everyone understands the truth is the purpose of my education. How high will it rise? Have you earned it? This is not the definition of successful cryptocurrency, nor is it something I care about.

Especially when I saw Tesla’s Musk and Ark’s Wood coming out to make some misleading remarks and hype cryptocurrency, all I was thinking about was how to make money when I bought Bitcoin? Or how to tout the startups that have invested in related cryptocurrencies? I can’t help but want to jump out and make things clear so that more people will not be misled. The reason why this decentralized Ponzi scheme is successful is that it uses a bunch of proper nouns to fool everyone, and many people take cash to carry the sedan chair. There are always some people in this world who are willing, to tell the truth!

Dogecoin, which has been hyped by Musk to the world’s 10th place, its founder Palmer recently criticized that cryptocurrency is a scam, a right-wing, super-capitalist technology, and its fundamentals The goal is to expand the wealth of supporters through methods such as tax avoidance, elimination of supervision, and artificial rarity. Although cryptocurrencies often call for “decentralization”, they are actually still controlled by a small number of interest groups, and by paying for Internet celebrities and the media to expand their momentum, they form a cult-like rat club, from those who are poor and naive. The people swindled money from their hands. I am very happy that another person is willing to stand up and tell the truth, but some netizens criticized maliciously, claiming that Palmer was jealous just because he did not taste the sweetness of Dogecoin’s rise. Do you see his experience the same as mine?

The meaning that new technology brings to mankind should not be a tool for collecting money

The invention of any new technology has its meaning to mankind. The mobile phone network makes our lives more convenient, anti-virus software makes the network connection safer, and even online games make leisure and entertainment more interesting. However, the invention of cryptocurrency, It’s just a tool for a few people to “trap money”, creating a bunch of difficult and incomprehensible blockchain terms, packaging the coat of financial technology to hype up, not only bluffing a bunch of investors but also making financial regulators play around. What does this mean for humans?

Bitcoin, in particular, wastes our precious electricity. When mankind is facing the greenhouse effect, the global average temperature in 2020 will rise by about 1.2 degrees from before industrialization, and a rise of more than 2 degrees will bring irreversible disasters, and these elite entrepreneurs, I just thought about making money by hype. I said Musk, you made enough money, right? You can’t spend a few lifetimes, should you think about how to preserve a viable planet for our descendants, instead of speculating on Bitcoin to make money?

The levy of the stock exchange tax has caused the stock market to fall sharply, and the levy of the cryptocurrency transaction tax has caused the cryptocurrency to rise!

Everyone still remembers that the Ministry of Finance discussed the levy of income tax on securities transactions, which resulted in the Taipei stock market plummeting. However, the US Internal Revenue Service (IRS) requested in May that cryptocurrency platforms hand over customer transaction records in order to recover transaction taxes. However, the cryptocurrency market has soared after hearing the news. Guess why?

Since Satoshi Nakamoto invented Bitcoin 10 years ago today, more than 6,900 cryptocurrencies have been traded on the market, with a total market value of 2.6 trillion U.S. dollars and a daily trading volume of more than 100 billion U.S. dollars [4]. From here we can see How big the market for hype and money laundering is up to now, but the government hasn’t gotten any benefits, and it’s itchy to think about it! Of course, we must begin to discuss how to reap the benefits. The problem is that if the government wants to collect taxes, it must first recognize the legal status of cryptocurrency. Therefore, the cryptocurrency market has soared after hearing the news!

Sources:

[1] https://ec.ltn.com.tw/article/breakingnews/3532621

[2] https://www.bnext.com.tw/article/65663/bitcoin-etf-listed

[3] https://www.bnext.com.tw/article/63948/dogecoin-founder-jackson-palmer

[4] https://coinmarketcap.com/

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