THE CASE AGAINST #BITCOIN
Rather than have long winded, & endless debates, I’m choosing to do a simple thread for my case against bitcoin. I have no horse in the race, as I do not own or speculate in any #crypto. All comments & refutations are welcome.
(Read entirely, no order) pic.twitter.com/XxU6359E0o
— OW (@OccupyWisdom) June 9, 2018
50) BTC is not money, not a SOV, not a medium of exchange, not gold, not a share of a company, not an asset, not a claim on anything tangible. It is electrons stored on a computer and nothing more. It has an intrinsic value of zero.
— OW (@OccupyWisdom) June 9, 2018
48) BTC acceptance is a novelty value, processing time & processing capacity are extensive inconvenient, its value fluctuates wildly (as in all bubbles)
49) BTC is still lacking a viable business model, and this has not yet registered with its investors
— OW (@OccupyWisdom) June 9, 2018
panic or crisis BTC aid likely to be sold like other assets, and will not function as a store of value
47) Effective medium of exchange has 3 characteristics: a. widespread acceptance, b. convenience, c. stability of purchasing power value over time.
— OW (@OccupyWisdom) June 9, 2018
or taxed into oblivion
44) Environmental lobbies/Govt are not going to allow mining to consume as much energy as the nation of Japan
45) Once all 21M BTC are mined, there will be no incentives for miners, and no incentive for verifying the blockchain
46) In the next financial
— OW (@OccupyWisdom) June 9, 2018
infinite amounts of crypto currencies which can make BTC obsolete
41) BTC cannot be expanded beyond 21M coins, this type of currency cannot support a credit market or expand with an economy – it is inelastic
42) BTC is not, and nothing like gold
43) BTC can be legislated
— OW (@OccupyWisdom) June 9, 2018
38) BTC is useless during natural disasters, long term power outages (hurricanes, floods etc)
39) BTC cannot be used to denominate any long term contracts, pricing, insurance or other policies
40) While BTC was first, it does not mean it is the best. There are unlimited and
— OW (@OccupyWisdom) June 9, 2018
33) BTC is a claim on nothing as represents nothing. Stocks, bonds, dollars, real estate etc all are a claim on tangible goods. BTC is not
34) BTC is not durable
35) BTC is not a store of value
36) BTC is not a medium of exchange
37) BTC is reliant on electricity & internet
— OW (@OccupyWisdom) June 9, 2018
using the token as a MOE impractical. It’s deflationary nature makes people hoard instead of spend. These two items make it impossible to use as money
32) Speculators are simply trading fiat for BTC hoping to get more fiat later. This is the antithesis of what was intended
— OW (@OccupyWisdom) June 9, 2018
price of BTC, it either collapses in value or becomes more centralized in the hands of those with cheaper energy
30) The capital gains tax ramifications have just begun, regulation hasn’t even started and the big banks already have their tentacles all over BTC
31) BTC fees make
— OW (@OccupyWisdom) June 9, 2018
obscene and ever increasing amount of electricity to solve very complicated and very pointless math equations
28) BTC is supposed to be anonymous, it’s not. The BC is supposed to be a chain, not forking in multiple directions
29) Once the median cost of mining exceeds the
— OW (@OccupyWisdom) June 9, 2018
realize that their BTC could become worthless instantly, & demand for BTC collapses
25) BTC has not survived a single business cycle, recession, depression, stock market crash or panic
26) BTC is correlated to risk assets & stocks, not to currencies
27) BTC requires an
— OW (@OccupyWisdom) June 9, 2018
22) buy more goods. Once hoarding takes over, circulation stalls, & with it entire point of the currency.
23) Hoarding accounts for the large increase in the value of BTC, nothing more
24) Once people realize there are no limits to how many cryptos there are, they will also
— OW (@OccupyWisdom) June 9, 2018
20) So instead of functioning as a currency (as intended) BTC functions as a speculative, fantasy asset
21) Fixed supply currencies become worth more in terms of goods and services (deflationary), & people begin hoarding with expectations that if they wait they will be able to
— OW (@OccupyWisdom) June 9, 2018
18) The rate of available BTC is not keeping up with the number of people trying to buy them, so the price of BTC increased rapidly (not fundamentals)
19) “Investors” sit & wait for BTC prices to rise further. This causes supply constraints & falls short of demand
— OW (@OccupyWisdom) June 9, 2018
and the individuals hyping BTC will have cashed out and left
16) BTC price is not a result of usage as currency, its all demand for speculative value, kept elevated due to artificial scarcity (like diamonds)
17) BTC is only 21 million coins which is naturally deflationary
— OW (@OccupyWisdom) June 9, 2018
13) $ from new investors is paid to early investors which maintain the illusion that the scheme is earning real profits
14) The moment redemptions exceed new investments, the scheme collapses
15) Once BTC collapses there is no one to turn to, no govt or bank is backing it
— OW (@OccupyWisdom) June 9, 2018
10) BTC is literally a claim on nothing other than a pointless math equation
11) BTC is a slow, costly means of payment. BTC conferences often refuse to accept BTC from attendees
12) As late as 2013 fraudulent activities by a single trader caused a 7 fold increase in BTC price
— OW (@OccupyWisdom) June 9, 2018
BTC isn’t a bubble, remember that by doing so you will actually be strengthening my theory. If you think BTC is a great investment, then you will want others to believe me)
9) BTC is an asset that has no physical existence, nothing but electrons stored on a computer
— OW (@OccupyWisdom) June 9, 2018
7) Potential gains, only if you can get in and out again before it crashes
8) With real investments, those that know the true value of the investment don’t advertise it or encourage others to buy in, they keep it quiet (Before you post a response trying to convince me that
— OW (@OccupyWisdom) June 9, 2018
fools theory)
4) BTC is owned by a few, who have a huge influence on price (centralized) 1,000 people own 40%
5) “Painting the tape” is not regulated
6) Its a bubble – obvious from the way that those who own BTC are trying to convince everyone who doesn’t own them to buy them
— OW (@OccupyWisdom) June 9, 2018
1) $BTC is simply a mechanism for transferring wealth from the late-comers to the early entrants
2) BTC is not used to buy goods and services, and does not function as a currency
3) BTC owners are holding it and hoping for price appreciation to sell for more fiat (greater
— OW (@OccupyWisdom) June 9, 2018
This is part and parcel of what happens when Wall Street starts shorting and selling futures.
Once it’s all speculators $BTC will return to its intrinsic value of useless math pic.twitter.com/VwRs3NehRa
— OW (@OccupyWisdom) June 9, 2018