real money is a token of energy exchange — you wash my car — -i pay you money — you use that money to buy sufficient food/energy to wash someone else’s car — -and so on

brain surgeon or garbage collector, the equation is always the same even if the amount of cash is different

if no energy is available for exchange then money can have no value

Money remains a stable exchange medium only as long as the energy underpinning it remains stable. This is why nations collapse when governments just print money to pay wages.

If Crypto currency was real money, governments would buy it and pay wages with it.

  • *********

What crypto currency is

With crypto currency, there is no energy exchange, therefore the only value is that generated by demand for the currency itself. Which isn’t real. — even though it appears to rise constantly.

The only actual money going in is that paid in by bitcoin buyers. There is no other source of physical revenue.

With that in mind — -no matter what 000% rise is shown, the amount of physical cash remains the same.

yes, people cash in bitcoin and take out real cash — -but they are the ones who get in and out quickly. The money they take out — -and here’s the killer — -

comes from money other people have put in

If I invest $100 and in 1 year it’s worth $1,000,000, and I decide to cash in, the only ‘cash’ is that put in by other investors, which has driven up the % growth over the year.

think about that — -there is no other source of ready cash whatsoever except other people’s money

which is the way ponzi schemes work — -the ‘’lucky few’’ who take out get it from there. The massive percentage growth doesnt exist. Bernie Madoff offered ‘big returns’ on investments but those returns were based only on his reputation for ‘paying big returns’. People watched the value of their holdings grow — -but only on paper. They didn’t exist except in the minds of those who believed they existed.

The scheme relies on the vast majority leaving their cash where it is. Just as it did with Madoff.

If everyone decided to cash in at once, the pyramid would collapse. It can only work on a forward moving growth.

this explains it more clearly

and if I’m wrong, I would be delighted to have it explain how and where.

co-author of The End of More, in paperback and kindle on Amazon http://www.amazon.co.uk/dp/B00D0ADPFY email pagett.communications@blueyonder.co.uk

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store