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In a recent Reuters story http://www.reuters.com/article/us-usa-banks-conference-jpmorgan/jpmorgans-dimon-says-bitcoin-is-a-fraud-idUSKCN1BN2KP, JPMorgan's Jamie Dimon threw a bomb at the emerging cryptocurrency.
In the story he states, "The currency isn't going to work. You can't have a business where people can invent a currency out of thin air and think that people who are buying it are really smart."
He goes on to compare Bitcoin to the 17th-century Dutch tulip bulb situation.
Is he right, or is he just shilling for the present system of imaginary-value fiat currencies?
[Separately, according to Bloomberg, Bitcoin has been on a five-day decline: Bitcoin Crashes After Chinese Exchange Says It Will Halt Trading. --Ed.].
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JPMorgan's Jamie Dimon Says Cryptocurrency a Fraud, Bound to Fail
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"The subspace _W inherits the other 8 properties of _V. And there aren't
even any property taxes."
-- J. MacKay, Mathematics 134b
(Score: 3, Informative) by Anonymous Coward on Friday September 15 2017, @08:22AM (5 children)
Cryptocurrencies, like BitCoin, are just a pyramid scheme hidden behind a math puzzle and buzzwords. And the pyramid is designed such that the first people are at the top, and then you fill the pyramid downward. Since the pyramid has limited number of steps, if you can fill most of it, then the people at the top struck the motherload.
Bitcoin is completely opposite of central bank managed fiat currency. There the supply of money is managed to facilitate growth stimulating level of inflation. Of course, this system is not nearly perfect but at least it not a pyramid :D
(Score: 2) by jimshatt on Friday September 15 2017, @10:19AM (1 child)
But you could do that with anything. Pieces of metal, or just signed paper, anything. The real value of cryprocurrency is the scarcity and anonymity upon which its intrinsic value should be based. We'll have to wait and see what the value of BTC stabilizes to after the pyramid schemes around it are done.
(Score: 0) by Anonymous Coward on Friday September 15 2017, @02:48PM
How are EXCHANGES a pyramid scheme? Exchanges generally maintain two public lists, one for buyers and one for sellers. When someone accepts an offer on either of those two lists, the price they agreed to can be used to calculate the average price of whatever it is the exchange is dealing in, also known as the exchange rate.
Pyramid schemes rely on exponential growth by scamming a percentage of money from newcomers to transfer to those at the top of the pyramid. You may be confusing a pyramid scheme with the benefits that come by being an early adopter of a typical currency, in that early adopters tend to acquire a lot of the relatively worthless currency which could increase in price if the currency later becomes popular.
(Score: 1, Insightful) by Anonymous Coward on Friday September 15 2017, @11:10AM (1 child)
The central-bank system may not be a pyramid, but those whose families got in early still enjoy all the wealth flowing upward.
(Score: 1, Funny) by Anonymous Coward on Friday September 15 2017, @02:18PM
The first rule of not dying suddenly of natural causes is that you do not mention the Rothschilds.
(Score: 1) by ants_in_pants on Friday September 15 2017, @04:58PM
Well I mean
So is all of capitalistic society.
-Love, ants_in_pants