Some Politicians and Celebrities Don't Like Bitcoin - Should We Be Surprised?
It is not really shocking that some politicians are against bitcoin.
Introduction
I was planning to do a post on protein folding today however as is often the case a few online discussions made me almost spit out my coffee in astonishment.
I am often surprised by how people who seem to be otherwise intelligent know absolutely nothing about how our modern monetary systems work.
That is the "kind" interpretation of their words and actions.
More cynical minds might say that they feign ignorance because the current systems benefit them.
In this case I was surprised to see famous actor James Woods comparing Bitcoin to a Bernie Madoff style Ponzi scheme.
Around the same time I saw a report in which Indian politicians were denouncing bitcoin legalisation due to the "crime risk".
Now there is an argument to be had on whether "legalisation" is a good or a bad thing (it could mean greater regulation) however what struck me were the crazy kind of arguments being made by the politicians against Bitcoin:
Bitcoin Increases Crime and Corruption?
This is another common argument and seems to be one of the arguments that some rather clueless (or perhaps villainous) politicians were making in the Indian situation.
Yes Bitcoin can be used for criminal purposes but so can most other forms of money or goods.
The biggest and least easy to trace source of crime and corruption is actually government issued cash.
In many ways, new techniques mean that bitcoin is actually easier to trace and follow - the information is available on a public ledger.
The thing is any type of item that has value can be used to commission crime. I have even heard of pieces of artwork being used for this purpose.
After all, there is no limit to human ingenuity and resourcefulness when it comes to crime.
Given how some of the most corrupt people in India are the politicians themselves I can't help but think they want to maintain the status quo so that they can continue to do what they do with less scrutiny.
It is much harder to track cash transactions. This was the supposed reason for the removal of certain denominations of currency from circulation in India last year.
If these transactions switched to Bitcoin they would be visible to everyone.
The Bitcoin as a Ponzi Argument
This is one of the oldest arguments that Bitcoin critics have made.
So what is a Ponzi scheme? - Wikipedia has a nice summary:
"A Ponzi scheme is a fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned through legitimate investments or business activities.
Operators of Ponzi schemes usually entice new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent.
Ponzi schemes occasionally begin as legitimate businesses, until the business fails to achieve the returns expected.
The business becomes a Ponzi scheme if it then continues to operate under fraudulent terms. Whatever the initial situation, the perpetuation of the high returns requires an ever-increasing flow of money from new investors to sustain the scheme."
The thing is nobody runs bitcoin - it is not making any claims on returns. Further this interpretation stems from a fundamental misunderstanding of what bitcoin is.
Bitcoin is not a business, it is not a company. It is a technology and a network.
In many ways it is more similar to a commodity like gold. People value it because they value the underlying network and it's ability to store value (as well as transmit it).
I also think such statements prey on people's ignorance and bias which make them believe that anything that is open to speculation and volatility MUST be a scam.
Just because something is open to speculation does not make it a Ponzi. Nearly all types of assets in the modern world are affected by speculation and have some level of volatility - even the most solid stocks and shares. It is part of how markets work.
Unlike paper money which can be printed at will (and created out of nothing), bitcoin requires ACTUAL work to mine it - which is a lot more similar to gold.
The terms of creation are fixed and baked into the system - there is no room for any fraud in the way that occurs in many methods of conning people.
When examined closely it is pretty clear that Bitcoin is NOT A PONZI scheme and that people who suggest this are either being ignorant or are attempting to spread misinformation due to their own vested interests.
We should not be surprised though - some people have always done this and likely always will.
Bitcoin and cryptocurrencies in general threaten to disrupt and democratise the whole economic system. It is natural that those who are benefiting from the current system might have a "problem" with that.
Conclusion
It seems to me that governments are struggling with the implications of a technology which could disrupt their ability to enrich themselves.
The more corrupt a nation is the less sense it makes for the politicians (who are often one of the most corrupt groups) to support a technology like bitcoin which is aiming to democratise the financial systems that have failed the vast majority of their populations.
Further, ignorant people with large audiences (like Woods) get wheeled out to support this agenda.
I suspect as time goes on we will have more and more celebrities talking about how "Bitcoin" is bad and dangerous.
I would not be surprised if vested interests such as banks are already enlisting these kinds of shills to put out their own message - i.e. cryptocurrencies bad fiat money good.
Don't fall for it. If you need a celebrity to tell you if something is good or bad then something is very wrong.
Thank you for reading
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Resteem and upvote.
Very good article, I will follow you.
Thank you:)
boooo.. they're saying its bad cause they want to push the back up crypto they have
crypto politics on the rise?
They don't like it because they can't control most probably.
exactly .. I won't be surprised if the back Zcash up too
Thanks thecryptofiend.. Very good, the difference between you & me and almost all other Steemers and the general public is that we've done our research on a subject that they don't even know exists, let alone understands.
Vested interests always poo-poo new things, especially when it threatens their 'profit and dominance' of an existing situation..
You can bet your bottom Steemdollar #SBD, those same people will be the first to jump on board when it becomes undeniably mainstream. only they won't really be able to control and dominate it this time ! hahahahaha
"The biggest and least easy to trace source of crime and corruption is actually government issued cash."
This quote needs to wheeled out in a big gold carriage every time anyone mentions bitcoin / altcoin and the link to crime
Thank you. Great answer!
E'steemed !
Thanks!
They dont like transparency and empowered people!
yeah they don't like people to think for themselves, let alone act independently or see beyond the MATRIX.. I think that's why they banned LSD
Great piece @thecryptofiend. I definitely think the naysayers are driven by fear, uncertainty, and doubt. I think education and eventual mainstream adoption of blockchain for enterprise applications will cure most of this... but you will always have Negative mindsets who hate the decentralisation which can remove power and control from the elite and spread it to the rest of the world-
I think you are right. They will only believe it when it has replaced the fake fiat system and even then they might maintain a level of denial.
Oh i agree. Disruption can be messy... often is at the beginning of any industry. But this disruption (because of the currency aspect) touches EVERYBODY. We will see some interesting times ahead no doubt! 😲😲😲
For sure!
They will never understand, he's just mad he did not get in at $0.25
Quite possible!
Very well said thecryptofiend! I believe this misinformation campaign is only just beginning. If you think about it, politicians hide most of the things they don't want you to know, but if they are REALLY bothered by something then they will turn against it with all their will.
Take the whole #fakenews as an example. They were quite pissed at the fact that some people were doing real journalism and made it a public issue. Now people are doing real banking and it's attacking them where it hurts most.
It's funny how I just had a conversation with a friend about this Bitcoin "criminality issue" and how people often blindly believe everything the government says. That needs to change.
Great article you earned yourself a follower :)
Thank you so much!
It all comes down to control. Their complaints that they list are not their real issues with it, in my opinion. To me, it seems more likely that it's just something new that they don't understand and can't control, so they fear it. They go looking for bad things to say about it.
It's similar to parents in the 80's and 90's telling their kids using the computer will rot their brains. To some extent, i approve of trying to get kids outside. But honestly, think about the salary difference between kids who became computer literate early on vs. the ones who didn't.
Very good points. Fear and lack of control likely do play a part.
Great post!
I did quite a bit of research on Bitcoin last week. (Not that i'm completely new to btc ) I just didn't found any articles explaining it this good.
Thank you that is very kind.
it is because the current monetary system favors them. They know the truth...people need this knowledge, resteemed!
Yes quite possibly, thanks!
anytime
Interesting article. Thanks.
You're welcome!
@thecryptofiend I never listen to celebrities I dont need them to make any decisions in my life, celebs dont have much interest in bitcoin or any crypto as they already have a great flow of cash.
Yes exactly.