From 5a85dc38e96f91c8c8ba35dda17158edb1f0655f Mon Sep 17 00:00:00 2001 From: Gerald Bauer Date: Tue, 5 Jan 2021 20:11:51 +0100 Subject: [PATCH] Update README.md --- README.md | 62 +++++++++++++++++++++++++++++++++++++++++++++++++++++++ 1 file changed, 62 insertions(+) diff --git a/README.md b/README.md index c64e98a..14e1ebb 100644 --- a/README.md +++ b/README.md @@ -407,6 +407,68 @@ in order to access the billions of dollars currently sloshing around in the Bitc Find more in [**`Preston_Byrne.yml` »**](Preston_Byrne.yml) +### Jorge Stolfi, Computer Scientist + +If a transaction has two inputs of 3 BTC and 1 BTC, +and two outputs of 2 BTC and 2 BTC, you cannot tell which output came from which input. + +That is the basic principle of ~~money laundering~~ coin mixing services. + + § + +Bitcoin is a Ponzi. +Investing in bitcoin, like "investing" in lottery tickets, is a very negative-sum game. +Namely, at any time, the total amount that all investors have taken out is considerably +less than what they have put into the scheme; the difference being the amount that the operators have taken out. +Thus the investors, as a whole, are always in the red, and their collective loss only increases with time. + + § + +Bitcoin is a Ponzi. +As a minimum, the operators should warn investors of the negative-sum character and negative expected profit. +In the case of bitcoin (and all other cryptos), not only that does not happen, +but there are thousands of promoters and "investment experts" who predict impressive price increases +and/or claim that bitcoin will have massive uses in the future that would somehow make it valuable. +Apart from the mendacity of those claims, those promoters never point out that such massive uses +would not translate into revenue for the investors. + + § + +Bitcoin is a Ponzi. +Objection! The operator must lie to investors about the source of profit in a Ponzi! + +Crypto promoters from Andreessen to Zhao actively spread many lies and misleading claims +about the scheme, through malice or ignorance. Investment "experts" like Tom Lee, Mike Novogratz +and Dan Morehead often give extremely optimistic predictions +for the price on business or mainstream media. Those predictions have no rational basis whatsoever, +and, while qualified with "perhapses" an "maybes" and "not investment advice" disclaimers, +they are obviously intended to promote investment in the coins. + + § + +Bitcoin is a Ponzi. +Objection! The operator must lie to investors about the source of profit in a Ponzi! + +Crypto promoters also make dozens of claims about the virtues of the currency and/or the payment system, +such as that it will "one day" replace credit cards, replace national currencies, +protect people's savings from inflation or confiscation by government, make banks obsolete, +starve governments to death by depriving them of taxes or "money printing", +enable support of dissidents in oppressive regimes, "bank the unbanked", +allow free internet trade of drugs and other illegal items, +end corruption, poverty, and inequality, etc. etc. etc. + + § + +Bitcoin is a Ponzi. +Objection! By that definition the U.S. Dollar (USD$) is a Ponzi! + +No, national currencies fail to fit the definition, because people do not "invest" +in them with the expectation of gain. In fact, governments make their currencies +slightly inflationary precisely to discourage hoarding. + +Find more in [**`Jorge_Stolfi.yml` »**](Jorge_Stolfi.yml) + + ### Tyler Winklevoss, Bitcoin Billionaire