Ethereum Crashes As Alarmed Governments Outlaw Fake Money Scams

Bitcoin Mining Fees Soar As China Crackdown Progresses | Zero Hedge

 

New Survey Reveals Staggering Number Of People Are Buying BitCoin On Their Credit Cards | Zero Hedge: this is classic, the last legs of a mania. The infamous Tulip Mania ended when people were putting their homes into hock to buy tulip bulbs for speculative purposes. Note how alarmed authorities are now cracking down on fake money used for crime or wild speculation. The cynically named ‘Ethereum’ scam shot upwards last week and now is nosediving. This is insanely stupid.

 

A few weeks ago we presented anecdotal evidence from Joseph Borg, director of the Alabama Securities Commission, suggesting that people are taking out home equity loans and cash advances on credit cards just to purchase BitCoin in the hopes of getting rich quick (see: “It’s In The Mania Phase”: Securities Regulator Warns That “Mortgages Are Being Taken Out To Buy Bitcoin”)

 

This is beyond stupid. People are not spending money on something that is useful except if one is a criminal and needs to hide where the money is really going. Using money to buy ‘money’ is akin to stamp collecting or other collectables all of which depend on scarcity so that the people speculating can cite rarity as an asset.

 

“We’ve seen mortgages being taken out to buy bitcoin. … People do credit cards, equity lines,” said Borg, president of the North American Securities Administrators Association, a voluntary organization devoted to investor protection. Borg is also director of the Alabama Securities Commission.

 

Here is an ad at Zero Hedge peddling bitcoins for ‘retirement wealth’:

This pure, useless speculation, when leading to bankruptcy, is highly dangerous. This hits real banks and real money systems. The scam artists who started this insanity will be arrested for fraud. All scams that lead to insane bubbles end up with the creators going to prison.

 

“This is not something a guy who’s making $100,000 a year, who’s got a mortgage and two kids in college ought to be invested in.”

 

Stupid people take on say, mortgages, to play the stock market when there is a mania. I had an ancestor who committed suicide in the late 19th century due to speculation in the markets and taking on debt to do this. My grandmother ended up on a religious farm with two grand aunties and had an adventurous life instead of a stifling Victorian upbringing in high society.

 

“You’re on this mania curve. At some point in time there’s got to be a leveling off. Cryptocurrency is here to stay. Blockchain is here to stay. Whether it is bitcoin or not, I don’t know,” Borg said in an interview with “Power Lunch.”

 

The stupid cryptocurrency is not ‘here to stay’. Its only use is for crimes where one has to hide one’s ‘money’ from prosecutors. Once this silly game explodes in everyone’s faces, the government will regulate it rendering it useless as a way of hiding drug dealing money.

 

It isn’t hard to outlaw this ‘money’. Any fraud can be outlawed. Using computer programs to create ‘scarce wealth’ is a scam and like all previous scams, will end up being outlawed. People using fake money between themselves can continue but it will be strictly underground, aka, illegal just like the drug trade it supports.

 

All the ‘smart people’ who are scamming others will end up being sued for fraud when this business collapses. It is a very obvious fraud! People compare this to gold. Gold is not a fraud. Gold has various uses as a metal and it is very durable, it lasts pretty much forever.

 

I vividly remember the birth of the computer chip: we used GOLD to conduct electricity! I made prototypes and when making these, I used very thin sheets of gold. Bought it in very small bundles with paper between each sheet of gold. The room I was in couldn’t have air blowing when using gold because it would waft away the gold sheets while handling them.

 

Why is this concerning? The virtual currency exchanges where Bitcoin is bought and sold will charge conversion fees when either a credit or debit card is used to find an investor’s account. Coinbase, the largest of the cryptocurrency exchanges, charges a conversion fee of 3.99 percent when a user uses his or her credit or debit card to bankroll their account.

 

HAHAHA. If speculators aren’t pushing this scam upwards, the ‘use as money’ aspect collapses. You have to pay a penalty to use it. Virtually none of this is used to conduct business. It is much more like stamp collectors selling stamps to each other.

 

Obviously, this is not the most financially-savvy move on the part of of a sizable percentage of Bitcoin investors; no one ever wants to pay extra than what is necessary, especially when dealing with something as volatile as Bitcoin. The wisest and most frugal way to fund a virtual currency exchange account would be through an ACH transfer, which is completely free of charge. Only 18.60 percent of our 672 Bitcoin-invested respondents were paying for the cryptocurrency in this fashion.

 

So, there are only around 700 clowns who are doing the ‘free exchange’ where you can transfer bitcoins to other accounts which are also bitcoins. This is so stupid. Why do this? How worthless.

 

Drug dealers aren’t going to keep accounts like this! They need to be not traced or tracked! And why on earth would one use ‘money’ that has reverse interest?  When I park money in my bank, it earns interest while in the right account (ask around for this!).  I don’t pay a penalty for saving money! Who is so insane as to do that?  A ‘money system’ that depends on speculators pushing its value upwards all the time is just as bad as inflation caused by money printing.  It is reverse inflation and has the same tendency to go to infinity if people are stupid.

 

More stupid news about a stupid con scam:  Bitcoin Mining Fees Soar As China Crackdown Progresses | Zero Hedge  The ‘mining’ of this fake scam ‘money’ is very expensive.  It consumes real resources.  It is a  monumental waste of all energy systems.  This is one main reason governments are now cracking down on this scam:

 

Indeed, many miners have already fled to Canada, the US – even as far away as Iceland. But those that remain are being squeezed by market forces as local authorities seek to deny them access to the cheap, subsidized electricity that allowed Chinese miners to flourish in the first place.

 

This abuse of all energy systems in a scam is part of why governments will eventually put all these creeps in prison.  They are causing system problems for all other users who are not abusing energy systems.

 

37 Comments

Filed under .money matters

37 responses to “Ethereum Crashes As Alarmed Governments Outlaw Fake Money Scams

  1. tio

    “All scams that lead to insane bubbles end up with the creators going to prison.”

    Or worse?

  2. Jim R

    LOL! I always get a laugh out of these alt-currency essays, Elaine!

    Where was BTC when you first started writing them? Around $200? And now it’s “crashed” to $14,000 and change… (take a lesson from your global warming essays, and look around)

    This is not “normal times”. People are not flocking to a sketchy internet-based scheme because it is hip and trendy (which it may or may not be), they are giving the almighty ‘$’ a gigantic vote of no confidence. That’s what you see happening.

    As the collapsing empire turns into a corrupt police state, and citizens are openly robbed by the government, in direct contradiction to several statements in the Constitution, people are giving a giant middle finger to the increasingly worthless currency of that government. In spite of the fact that it’s just an assortment of computer nerds, noodling around, and the degree of security, safety and anonymity of these things is somewhat less than absolute.

  3. Me tee

    Wanted to donate but i dont see an option for donating bitcoin?

  4. Lou

    3–wise guy [or gal].

  5. tio

    Jim, I’m not laughing. I think Elaine is distressed, as I am, that a lot of desperate people are quite literally betting their houses on this phenomenon.

    But you are right, the tech and motive of BTC is to piss off the people I like least, so ..

  6. Lou

    Here is an ad at Zero Hedge peddling bitcoins–I m not sure what J Altuscher is peddling but he is Jewish.

  7. Lou

    I am on you tube daily and that ad [JIm Altuscher] is in rotation.

  8. Lou

    Kodak coin
    Long Island Ice tea coin

  9. ziff

    sunger, now you have to account for every winter back to 1830 , haha !

  10. Alex

    This is hilarious. Thanks for the laugh. 😂

  11. Jim R

    Lou,
    1) if you wanted to make money trading bitcoin, that train left the station several years ago.
    2) of course, the central bankers have always gone medieval on local currencies, they want the godlike power to run the universe.
    3) in no way will banning these currencies slow the collapse of the empire.
    4) I am sorry for those poor people who have hocked their houses, but people will be people.
    5) what I said is still true: the popularity of bitcoin is a giant ‘FU’ to the banksters and the dollar and the status quo. It’s a whole lot like the Trump election victory that way.
    6) Max Keiser is an idiot, as if that wasn’t already obvious.

  12. ziff

    poor sunger , reduced to cnn

  13. Lou

    13–I do not think Max is an idiot.

    ‘slow the collapse of the empire.’–The collapse is intentional. I read that government computer code is what the Block chain is built on.
    That 1988 cover of ‘The Economist’–hmmmm.

    ‘if you wanted to make money trading bitcoin, that train left the station several years ago.’—what was its price a year ago? Some people must have made money.

  14. melponeme_k

    It looks like a basic pyramid scam with convoluted outer covering. The exchange only has value as long as new people pump money into it.

    The reviews of the trading companies themselves are filled with angry customers claiming that their accounts were erased or stolen. If there is an outage somewhere and your account disappears; the attitude is …sucks to be you. No customer service at any of these fly by nights.

    However, I do believe this is just a psy-op test case to gauge how well we all will take to funny bunny rubber “money”. None of this is being done without cause. I wouldn’t be surprised if the CIA is behind it.

    Imagine companies, countries, cities and other entities all releasing their own “currency”. How could a person navigate such a world? And all on an AI interface designed to interfere with our thought processing. Like in this video:

  15. I talk about this scam because it is an obvious total scam but since all scams work FOR SEVERAL YEARS this fools people INCLUDING the scammers into thinking these silly bubbly stupid things will work forever and go up and up forever.

    They never, ever do this. They all collapse usually leaving a huge economic mess. This is no different. If people want to be fools, be fools. It is easy being a fool. No thinking involved.

  16. Lou

    I found this,
    They just created a Japanese girl group to promote crypto currencies. Six girls, each representing a different crypto coin In the press release images they are doing the 666 OK sign in more than a couple. The OK sign also has the one eye. Interesting for something that is supposed to break the bankers’ control.

  17. melponeme_k

    OT

    Colin Flaherty’s new channel

    https://www.minds.com/ColinFlaherty

    He was recently kicked off Youtube.

  18. jason

    Meanwhile the stench from the Clinton Foundation offend more noses. How much longer can progressives hold their noses . . .

    http://www.thegatewaypundit.com/2018/01/bill-clinton-says-haiti-relief-funds-didnt-pay-chelseas-wedding-wikileaks-dropped-document/

  19. The Clintons lie about everything. Unfortunately, the Bilderberg fake news systems like the New York Times and Washington Post won’t publish this information. They all lie about everything all the time now.

  20. OC

    Gold & Cryptos up, USD down..
    http://www.thedailyeconomist.com/2018/01/higher-gold-prices-and-declining-dollar.html

    The elites planned to kill the USD and run to precious metals and cryptos.

    Note: Personal view – cryptos may be the place to be in for the short term..

  21. Lou

    WATCH THE BOND MARKET.

    Meanwhile,

    Similar to Ethereum, the ETHOS token is the “fuel” that powers the Ethos Ecosystem. This fuel powers a broad range of services including access to the Ethos API and many other services. For example, any developer can build applications that leverage Ethos wallets, keys or data in Bedrock by paying fractional ETHOS tokens for that application. ETHOS tokens reduce the cost for consumers, businesses and developers by enabling micropayments at very low cost to create a safe, secure and verified way for anybody to participate in the new economy.

    Ethos is open to everyone. Community participation is key to the success and development of the Ethos Ecosystem. The community can get involved in open source development, become a part of the Ethos movement and even in the future provide valuable services to the Ethos Ecosystem. Ethos is about using the powers of the blockchain to rethink how a digital financial ecosystem should operate.

  22. Mewswithaview

    Chelsea Clinton dares to lecture Trump on Haiti, forgetting her family’s historic robbery of the island
    http://theduran.com/chelsea-clinton-dares-to-lecture-trump-on-haiti-forgetting-her-familys-historic-robbery-of-the-island/

    James Woods delivers kill shot to spoiled brat Chelsea Clinton.

  23. The ethos system has NO POWER. It is fake. It is backed by zero guns. Look, even gold has no power if there is now muscle behind it! In previous civilizations, gold was decorative and nothing else. But it had power via the Rulers draping themselves in gold in various ways including idols and buildings in order to advertise their military power.

    Gold was used for the most part for hiring mercenaries and bribing governments. For commerce, cheaper metals were used. Gold doesn’t circulate, it is hoarded.

    These crypto scams work only if the vast amount if this fake junk is hoarded. The minute it really circulates, it dies.

  24. Melponeme_k

    “But it had power via the Rulers draping themselves in gold in various ways including idols and buildings in order to advertise their military power.”

    They equated themselves to gold because they thought their blood was so rare and valuable. But like gold, they are only as important as the muscle they can buy to protect them.

  25. Yup, proof is that all but a what, 2 or less? tombs of hundreds of Egyptian rulers were all looted with the most recent being King Tut.

  26. Lou

    Bitcoin near 50% drop,

  27. Most of the scam coins fell much more than 50% today.

  28. Lou

    31–The ZH chart shows ONE went down 50%+…only one, today.

  29. And the rest went down 49% to 30%. Oh my, they are sailing to the moon, aren’t they all? Sheesh. If you click on my picture showing these declines, it clearly shows a fatal crash of all these scam games.

  30. Lou

    Time will tell if the crash is ‘fatal’–the drop was 20-40% on most.
    Bitcoin did drop almost 50% before a recovery. 19k to 10k to 14k is a nice recovery.
    I do not own it.

  31. Um, it is falling. All this is falling. Fools will try to keep it from falling sort of like catching a falling knife but they are bleeding.

  32. Pingback: Is Ethereum Trading A Con – Crypto Exchange Reviews

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