The Crypto Con
Cryptocurrency is a pyramid scheme that only benefits those at the top. Not only does crypto have no intrinsic value, its rampant corruption, lack of regulation, and predatory practices make it an active threat to consumers and society-at-large.
What is cryptocurrency?
High level: Cryptocurrency, such as Bitcoin, is basically a digital poker chip. The point of a poker chip is that instead of pushing giant piles of money around the poker table, players can use tokens that represent that money; it’s a lot less messy. Bitcoin is the same – a digital token that represents a certain amount of money, designed to be easily tradeable.
What proponents claim crypto will do:
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It makes financial transactions more efficient (per the above).
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It empowers everyday people. As a “decentralized” currency, it operates outside of established financial institutions and the regulations they impose on us.
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It offers a powerful investment opportunity, giving ordinary people more control over growing their wealth.
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It offers greater security in financial transactions because holders can operate anonymously, staying off the books.
But it will do none of those things. In reality...
It's not a good investment.
Crypto only benefits those at the top, but even more, it has no actual value. Per Warren Buffet, "to have value, assets have to deliver something to somebody.” He continues, "Bitcoin has no intrinsic value; it's a delusion" and "it’s stupid because it’s still likely to go to zero." It's also massively unstable – not great for investing.
Its promises of 'decentralization' ring hollow
"Either Bitcoin is a decentralized, secure currency that can replace the dollar, OR it's a speculative asset that will make the people who hold it rich with no work. It can't be both, and Bitcoin people can't decide which one it is.”
It isn't more efficient than other forms of digital payment
Services like Apple Cash and Venmo allow people to send and receive money with ease; Bitcoin brings no additional value to the average consumer, only to financial grifters.
It isn't secure.
Per Seeking Alpha, "the past few years have proven beyond a shadow of a doubt that Bitcoin is highly traceable thanks to its public ledgers," and that its "claim to anonymity is fading by the day."
“In my life, I try and avoid things that are stupid and evil and make me look bad in comparison to somebody else – and Bitcoin does all three."
- Warren Buffet, 3rd richest man in America
Bitcoin is a pyramid scheme that is dangerous to legitimize.
It "has no intrinsic value" or value to our greater society. It's just been hyped up with flimsy promises and shrewd influencer marketing, because the only way Bitcoiners make money is by convincing more people below them to buy in so it appreciates (AKA a pyramid scheme). It has been derided as "rat poison squared" (Buffett), "the biggest Ponzi scheme in human history," (China's Blockchain Service Network), and "neither suitable as a payment system nor as a form of investment, so it should be treated as neither in regulatory terms and not be legitimized" (European Central Bank).