The New York Posts John Crudele has published an article that discusses some reasoning for his theory that Bitcoin is about to fall out of itself and totally lose all value. Whilst this is a bold and frankly unrealistic claim, this is something that we should explore.
The New York Post is one of the largest newspapers in the United States, in fact the website alone reached more than 57 million unique visitors in January 2017. With this in mind, we can safely conclude that The New York post is huge and therefore, what writers like Crudele publish, will be seen by the masses.
Here’s what Crudele has to say:
“I thought we’d finally get rid of bitcoin. But the fake ‘currency,’ which I like to call bitcon, just won’t fade away. Bitcoin’s price rallied to over $6,600 yesterday, but it had been well under $6,000 last week. Even at $6,600, bitcoin is still worth 70 percent less than it was at the beginning of the year.”
“I use the term ‘worth’ cautiously because bitcoin is really worth nothing since it’s backed by nothing or no one. It’s a confidence game that has value only because people are convincing other people that it’s worth something. Got it! Ponzi scheme. Confidence game. Fraud. Anyway, bitcoin is headed for a value of zilch. It’s only a matter of when.”
See the full article for yourself, here- https://nypost.com/2018/07/04/why-bitcoin-may-be-soon-worth-nothing/
Other than being an utterly ridiculous claim with no real bearing or justification, we can spot a lot of flaws within this argument (as I’m sure you can too).
Let’s break it up a bit.
Firstly, Bitcoin is not a fake currency, its sheer existence and its use as a store of value and a commodity for trade makes it a currency. Next Crudele argues that Bitcoin is worth 70% of its value at the start of the year, which may be correct, however Crudele fails to recognise the value of Bitcoin, two to three years ago, and beyond, when the price of Bitcoin was far less. Bitcoin has already made a lot of people a lot of money, therefore this argument is totally invalid. Moreover, Crudele fails to comment on market volatility so again, has no argument here.
Next, Crudele refers to a lack of backing from Bitcoin. Within the industry, this is known as decentralisation, so I guess this is a concept Crudele is unable to understand.
Then, finally, Crudele reels off some poor attempt at tarnishing the reputation of Bitcoin by referring to Ponzi Schemes, Confidence Games and Fraud. None of which can be applied to the nature of Bitcoin, but good try.
Bitcoin will not be worth nothing soon. Bitcoin is an asset of value and even if it never reaches $20,000.00 again, Bitcoin will still hold value. This will always be the case. Bitcoin is now an established cryptocurrency, and thus is with us for the long run now. People like Crudele post this sort of FUD in order to cause a stir and probably generate some advertising revenue. To be honest, Crudele probably has tonnes of Bitcoin stored somewhere so therefore, i’d take this article as lightly as you can.
Sorry, but The New York post have got it wrong this time.