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Preston_Byrne.yml
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Preston_Byrne.yml
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###############
# Preston Byrne
- quote: |
The Bitcoin "Nakamoto Scheme" is an automated hybrid of a Ponzi and pyramid scheme
which has, from the perspective of operating a criminal enterprise,
the strengths of both and the weaknesses of neither.
The Nakamoto Scheme draws strength from what make pyramids and Ponzis
so compelling:
a) it promises insane investment returns,
b) can be accessed by the man on the street with almost no effort at all, and
c) recruits individual participants as new, self-interested evangelists of the scheme.
date: 2017-12-08
source: https://prestonbyrne.com/2017/12/08/bitcoin_ponzi/
- quote: |
The Bitcoin "Nakamoto Scheme" has no central operator.
This ensures that no single member or entity can be held liable
(as with a Ponzi or pyramid) and obscures the identity of participants from law enforcement.
This also, like a pyramid scheme, has the insidious quality of turning
every victim of the scheme into a new principal as they talk up their books
for the purpose of recruiting new investors to subsidize their exits.
date: 2017-12-08
source: https://prestonbyrne.com/2017/12/08/bitcoin_ponzi/
- quote: |
> Bitcoin's market cap just passed Visa's.
> Yes, that Visa:
> - Largest electronic payment processor in the world
> - $8.9 trillion in 141 billion transactions per year
> - Across 160 currencies and over 200 countries
For contrast, Bitcoin gets about 3 transactions per second,
with one "currency," and the network is currently clogged.
date: 2017-12-08
source: https://prestonbyrne.com/2017/12/08/bitcoin_ponzi/
- quote: |
> As the value of Bitcoin goes up, the energy used to mine the cryptocurrency
> has reached a staggering 30.59 terawatt-hours (TWh)
>
> That's on par with the energy use of the entire country of Morocco.
Considering the alternative (using old school finance and landing in jail),
I can see how some Bitcoiners might see this as a price worth paying
in order to access the billions of dollars currently sloshing around in the Bitcoin markets.
date: 2017-12-08
source: https://prestonbyrne.com/2017/12/08/bitcoin_ponzi/
- quote: |
An investment scheme backed by introducing new investors...
...and not backed by income-generating assets can be called a number of things.
I leave it to you to decide what name you will choose.
date: 2017-10-13
source: https://prestonbyrne.com/2017/10/13/basecoin-bitshares-2-electric-boogaloo/
- quote: |
A stablecoin that is collateralized by itself is a complex and fragile
"Nakamoto Scheme" - an automated hybrid of a Ponzi and pyramid scheme -
doomed to fail.
A stablecoin that is collateralized by real assets and structured correctly
is not a stablecoin, but a unit trust.
date: 2017-12-10
source: https://prestonbyrne.com/2017/12/10/stablecoins-are-doomed-to-fail/