Exposing crypto currencies as ponzi schemes and showing that they never had nor ever will have anything to do with money is an incredibly easy task to do. All one needs to do is to look at one simple concept -the concept of number. A number is defined as a mathematical object used to count, measure, or label things. Now, given this concept let us ask one simple question: What 'thing', is measured, counted, or labeled, with the number called bitcoin?
.... the rest you can watch in this short Youtube video:
https://youtu.be/gcNngl8fCUYAnd what is money? It only recognizes papers as a value. Why BTC can not be money. It's a contractual issue. Depends on demand and supply ...
In a banking system all money comes from debt. So when new money, dollars for e.g., are created, in the same time, some individual, company, or organization became legally obligated to pay these dollars back. That's the nature of debt - it must be paid. In other words, every dollar that is currently in circulation, must eventually be returned to FED or commercial banks. That means that those who received dollar loans and put dollars into circulation are forced to get these dollars back by selling their goods or services to people who have dollars. Otherwise they will fail to make necessary loan payments and as a result they will be taken to court and the banks will seize their property.
So due to the fact that dollars come from debt and debt must be paid, people who have dollars do not have just a piece of paper with some numbers on it, but instead, they have legally enforceable rights to goods or services of people who received the loans. Dollar is therefore a property, which is by definition a resource with real or intrinsic value.Regarding cryptocurrencies, since they didn't originated from debt, nobody is legally obligated to use them to repay the debt, which is why cryptocurrency holders have nothing but mere numbers. And if a situation occurs where nobody wants to accept cryptocurrencies in exchange for goods and services, no legally enforceable right exist upon which they can get some kind of value out of them. Hence, all that these people have is hope and faith that someone will exchange their numbers for something useful.
I'll have to agree with you. The only thing that has every created wealth for me was learning skills and talents that are valuable in the marketplace. So far, fiat (USD) is the only useful currency. It has enabled me to buy real estate (now worth >$1.5MM in equity), which ALSO generates income for me every month. I could stop working today and easily live off the real estate INCOME.
Bitcoin and cryptocurrency will NEVER PRODUCE CASH FLOW, so therefore cannot be valuated. I work in a very technologically oriented field within medicine as a physician, and I have played around buying some crypto. I am still not seeing very much utility. >95% of people buy crypto NOT to actually use it in the way it was intended, rather to hold and speculate that it will rise in value. That is dangerous and just foolish.
Until a real use for cryptocurrency is realized, I will not put more than 0.5% of my assets into cryptoassets.
