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Opinion | The idea of a currency is not a currency

Ponzi Scheme

Opinion | The idea of a currency is not a currency

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Cryptocurrencies such as bitcoin are video games with no more reality than a “Minecraft” village. The value of the real energy consumed to record and track the virtual movement of the cryptocurrency units appears now to rival the pretend value of the units (plus or minus 30,000 on any given day). The reality is that cryptocurrencies are a loss of real energy — a loss as real as a forest fire. Cryptocurrency is an energy-expending accounting system accounting for a nonexistent substance. There exists no coin, only the idea of a coin. Even the infamous Dutch tulip bubble had real tulips. Cryptocurrency has only a confabulation story. By what convolution can cryptocurrency be interconverted with any actual government-backed currencies?

Shockingly large numbers of people seem to accept cryptocurrencies as a reality. Large numbers of believers do not make reality. The reality is that cryptocurrencies are a loss of energy backed by nothing of substance. As with late arrivals to a Ponzi scheme, some folks will eventually learn that they own a great deal of nothing at all.

George Perry Hoskin, Burtonsville

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