Topic: John McAfee accidentally just revealed why Bitcoin is total fraud: Behold logic (Read 1104 times)

We will find out soon. There is a rumor that JPM sold BTC short in June/July to bring the price down. Some say they have a buy option at $2500. If you look at the chart, BTC went down from $2,800 to $1,700. JPM might have known that China was about to close exchanges and speculated that BTC would've taken a severe dip.
But what happened (assuming the rumor is true)... the market just soaked in all the BTC like a sponge. After the short sale ended, BTC rose to a new $5k high. And now it's back to $4k after the market soaked up the BTC from the Chinese exchanges. In that case: Yes, the downward movements would be artificial, it would be explain why miners like Genesis aren't paying out BTC, because JPM is most likely to have 'em lend by big miners. It might be even possible that Mcafee lend them too and why there was a $16M BTC transfer between two wallets w/o cashing them in prior to June.

Now, I don't know if these rumors are correct or just imagination, but the future will tell. If JPM thought they could 'destroy' the trust in BTC by selling them short just a month before China was announcing to close exchanges and giving them back at a waaaay lower price, BTC will go up a lot, depending on how much BTC JPM has to buy back... or the insurance company that gave them a $2,500 per BTC buy option.

I had already seen that interview before reading this, so it’s been quite shocking to me that supposedly McAffe has revealed accidentally why it is a fraud but after reading that it is quite clear is that the fraud is the conclusion he is trying to draw. He us just making biased assumptions about bitcoin and stating them as a fact, for example he says that bitcoin price is in a bubble but he doesn’t prove that. A high price doesn’t always imply a bubble.

It make for an interesting read, but I do question his final intentions.

Sure hope McAfee can deliver something tangible and not just another cash cow.

100% correct, the author have no clue what he is talking about. In his mind the difficulty is being manually manipulated,

which is not the case with Bitcoin. This was specified in the protocol when it was released. No entity or developer are adjusting

the difficulty manually. This is determined by the amount of hashing power that are added externally by people who starts the

extra miners.  ...... Why do these idiots create articles like this, without doing their research? They are making fools of

themselves. 

Heh, the "unnecessary" computation is there to keep a window open (block time) to allow every node the opportunity to find a block.  If PoW wasn't required, then we'd have to find some other way to distribute the work.

what John Mcafee thinking , he no understand what he say , just like JP morgan , i think they invest to in Bitcoin and they make these argument because both want to be famous again , lol 

Two words:

Difficulty Adjustment

While I disagree with their assessment, the rest of the article's writing looks fine to me. Everyone has their own agenda.

I can totally not see where he said it's a fraud. You have over analyzed this article to your own doom. Hilarious joke. He says nowhere that i's fraud. So stop spreading fud.

Furthermore, the "artificial work" aspect of Bitcoin mining and its artificial computational complexity is the digital equivalent of paying people to dig ditches and fill them in again while claiming the activity boosts economic output.


That's a good counter point. I'm for the movement, but there's no denying there's many oft repeated fallacies.

Yes it's ridiculous. Absolutely clueless person talking about and saying crazy things none of us have even heard of since none of us have entertained such nonesense. Saying "bitcoin is fraud" doesnt even make sense. It's not even proper English. It sounds like something someone who doesn't speak English would say and it's lost in translation.

1. As difficulty increases, the cost of production would increase, thus gravitating the production cost towards the price.

2. Market price dictating the cost of production. Limited supply and as the demand for Bitcoin increases, price increases to keep the cost of production lower than the market price.

Yeah, if Bitcoin price drops considerably then difficulty would decrease to meet the cost of production.

Mining is a competitive industry. Even with increasing difficulty miners would find a way to remain profitable through cheap electricity, renewable resources, and more efficient equipments.

Another worthless article.

1-The author does not understand difficulty and it's ability to dynamically adjust.

2-Yes, bitcoin mining is exactly analogous to digging ditches, this is why it is infact a more honest form of money. Proof of work is based on expending financial resources that contribute to the security of the network to recieve a reward.

The more people that expend resources, the more that agree that is valuable and therefore the more it costs to be rewarded and the more it is likely to be worth. Less people expend resources, less agree that is have value and you will see a cheaper price. When this resource is scarce and secured by maths and cryptography it's harder to imagine a more honest form of valuation for an asset.

All points are ok for sure, as I was believing btc will improve itself like a never ending before its move down to 2k levels, each downward movement the deeper and deeper, next time we might see lower levels. Becomes like a wheel spinning, trying to reach 5k then something happens and drop down immidiately to 2k levels. Do you think that it is a fake movements? Is this movements created?

this is such a weird article. and the choice of words in it are pretty interesting. it shows the purpose of it which is in fact mostly FUDing bitcoin. words such as "computational wheel spinning operations" and "artificial work" are what stand out to me.

... and they keep bashing bitcoin for years and years to come. but bitcoin is going on strong and disregards all the B.S. of the media. the real panic comes from those who are bashing it.

I think a reason people are struggling here is because both McAfee and the author of this article make serious mistakes, and you need to disentangle the errors to get straightened out.

1. The author is correct to criticize McAfee for arguing that bitcoin has value because it costs something to make bitcoins. McAfee has it exactly backwards: It costs something to create a bitcoin BECAUSE bitcoin has value. Back when bitcoin was just getting started it cost virtually nothing (in terms of hardware and electricity) to get bitcoins from mining. As bitcoins became more valuable competition for them increased so that it costs quite a bit to create one now. But the cost to create a bitcoin floats relative to the value of bitcoin established by the free market - not the other way around.

2. The author is entirely wrong to imagine that there is a relationship between the cost to create a bitcoin and whether it is a fraud or not. Let's say a tooth fairy showed up at the US Mint and offered to pay the cost of printing USD. Would that make USD a fraud because they are now free for the government to create? Not at all. Nor are they a fraud because they do in fact cost something to create.

What makes a currency a fraud or not is its scarcity, and whether that scarcity is maintained into the future. If people buy into bitcoin on the belief that there will ever only be 21 million bitcoins, and then the devs and miners collude next year to flood the market with a billion new bitcoins, destroying the investment of earlier buyers, then THAT would be fraud.

Likewise, when people place their trust in USD or other government issued currency, and then said governments inflate away their debts by flooding the market with new currency, destroying the value of that currency, then THAT is defrauding the savers who hold their currency.

So the Natural News author is precisely wrong. So long as Bitcoins total supply and mining schedule remain untouched Bitcoin is NOT a fraud. But so long as governments inflate their fiat money supply, particularly in unpredictable ways or to reduce the stress on their budgets, then those fiat currencies ARE frauds.

Article doesn't make much sense.  Seems the writer is assuming that mining Bitcoin isn't profitable? If yes, then I think he misunderstood McAfee.

OK!  We have heard him. Another hypocrite on the loose. What baffles me is how these guys do not understand how irrelevant their wacko thoughts are regarding bitcoin. I am sure he didn't understand how ridiculous he sounded cause from his speech it was obvious he contradicted himself and that is what happens when someone is confused.

That article is really funny...it is a trying hard attempt to bash Bitcoin by just quoting a single person and make the man as the representative of the whole industry. Now, it is sad that people kept on bashing Bitcoin but then looking at it from another angle we should be expecting this and there can be more, obviously. Well, at least we live in a democratic world where people have the choice to be a part of or stay away from...that is the only thing I can say to the author. Nobody knows exactly what can happen in the future but am more inclined to believe that Bitcoin is here to stay and that recent debacle caused by China news is just an example of how resilient and a fighter our Bitcoin is.

So 100 years away == rapidly approaching now?