Digital currency Bitcoin hits new high before losing S$200 in value in one day

[specuvestor]

https://webb-site.com/articles/bitcoinponzi.asp

Let's try to explain, in simple terms, why Bitcoin and other digital pseudo-currencies will fail. Bitcoin is the World's first distributed, decentralised Ponzi scheme. No single operator is running it, and everyone has a chance to participate in it, but its value is determined purely by the weight of money coming into it and the willingness of holders to sell it. Like any Ponzi scheme, earlier participants came in at lower cost, and are now receiving much of the billions of dollars (yes, really) that newcomers are putting in.
Some members of the scheme spend their time telling their friends how they should get in on this Big New Thing and how much money they have already made "on paper", or more accurately "on screen". If your Bitcoins are now "worth" more than you paid for them then you may feel successful, but if you haven't yet cashed out as much as you've put in, then you're still a potential victim. On the other hand, if you've got your cash back or more, then you're already a paid-up and paid-out member of the Bitcoin Ponzi Scheme. And unlike Bernie Madoff, you're probably not going to jail, although some of the self-serving promoters of Bitcoin are skating dangerously close to that if it can be proven that they knew their claims were false and/or were simultaneously selling. Also, unlike the beneficiaries who cashed out of Madoff's funds before he crashed, you probably won't have to pay anything back. That's the beauty of a decentralised Ponzi scheme.
Most of the larger participants will privately admit, if only to themselves, that Bitcoin is a bubble, but they also believe that they can get out before it crashes, or don't much care because they have already cashed out far more than they put in. But just remember this: Bitcoin is essentially a zero-sum game. At any point in time, the cumulative sum of all net cash put in by losers will equal the cumulative sum of all net cash taken out by winners (excluding mining costs).

How about some skepticism on blockchain?

https://www.kaspersky.com/blog/bitcoin-b...ues/18019/

At the current state, blockchain is unable to be revolutionary. It hogged too much resources to do so little.
For a typical company, it is still much cheaper and faster to open an account with a bank to do business.

The decentralized concept is probably the most deceptive since the bulk of blockchain computation is owned by a few pools of computers. Ironic isn't it.

Last but not least, with such a huge gyration of cryptocurrency value, they cannot be used for transactions. A company that accepts cryptocurrency for payment may be staring at high losses when the value drops the next day.
So, at the current state, cryptocurrency is just like the tulips mania 500 years ago. Cryptocurrency is only useful for speculation now.

Nice summary Yeo

Between the 2 I think Blockchain has more value but even so, though innovative, the impact would probably be like 3D printing or 3D movie, not revolutionary like internet

I knew bitcoin will be crazy because of the limited supply. But I didn't expect it to be THAT crazy. Millenias like the young people before them, love liberal anti-establishment ideas. Even the internet which was truly life changing and supposedly the epitome of freedom, turn out to be not so free after all. Because content is not neutral. There is no such thing as utopian freedom once there is vested interest

Even if bitcoin becomes "currency", it will be controlled by some vested party. Look at how Linux, android or Java evolved.

It is indeed like a pyramid. The early movers will reap all the benefit from those below them. The idea to restrict the production is quite genius but it does not betray the fact that it is castle in the air.