Halving or Calving?
Late Friday the Bitcoin world went through it’s fourth halving since the creation of this mock currency. I think it’s big news but honestly, I could care less about Bitcoin, Ether, Etherium or Dogecoin.
I think for the last three years I have pretty much made my case against this nonsense and I have exactly Zero problem with missing out on this incredible runnup of the price of Bitcoin.
The halving event is another example of how little I truly understand the mechanics of this bogus currency. Once again, I will reiterate, I do not invest in crap I do not understand.
I have read several articles about this halving event and while I get about 20% of the reason for doing it, I still have some unanswered questions.
Mainly, who decided that last Friday was going to be the day of this event? For a currrency that supposedly has no central figure and is supposed to be unencumbered by any government or central governing factor someone has come up with a date and time to do something that will impact the key players in this field, the miners. Some central authority has figuired out that there is a powerful need to do a “reality check” on the whole ecosphere of Bitcoin.
That seems contrary to what all these adherents would have you believe. Bitcoin is not beholden to any government or rule making power. I say Bullshit.
The halving event proves that there are people in charge. Somewhere.
Was it the elusive founder or creator of Bitcoin, Toranaga-Sama? Or someone else?
I would venture to say that 98% of the people who have been touting Bitcoin and all the other crypto shifty currencies have no clue who governs, suggests, controls or anything else in this ecosphere.
You invest in gold as a hedge. You know what you are dealing with. It’s simple. Some gold strategies are complex but if you want to just hold gold, you know what you have.
You trade Dollar/Yen or Yen/Euro or any other FOREX type trades you know what you are getting yourself into. You also know every currency is backed by the stability of it’s home country or countries. It’s not sexy but trillions of dollars are traded each day and it has worked pretty much from day one.
Of course there are bad actors but there are bad actors in every walk of life. I know if I am going to put on some Dollar/Euro trade to protect some asset I have I know it will work. I know it will clear and settle and I have no problem understanding the mechanics of whatever I have done. I also know that there is constant oversight by the US and the EU along with Japanese regulators. Again, it’s never sexy but I know if I lose money, it’s my own fault. My fault in judgement or my fault in whatever calculations I use. I am responsible.
Not so with any crypto currency. It is still, after how many years, a murky place with the proponents saying it’s not, but not one person could ever explain who started this and who governs it and how do you get restitution if 400 million dollars worth of Bitcoin disappears. Sure they say they can get it back but do they actually get you your money back? All we ever hear about is the story of how some nerdster comes up with a scheme to defraud, he then implements his plan, people lose millions. The press will gleefully say that the authorities have caught The Whitey Bulger of the Crypto World. He is going on trial, he gets convicted. Great. Now wheres the money?
You rob a bank. You get caught. You do time. Not one person loses one penny. The bank may take a hit for a split second. That’s it. A group of cyber thieves figures out a way to rob millions or billions from a bank or government. They track them down eventually and put them away for a while. Most of that money will be recovered but even if it’s not, banks make their customers whole.
In a crypto currency theft, no one is made whole. The lack of regulation and the lack of oversight lends itself to keystroke criminals absconding with billions of untraceable value.
There never is a truthful ending to any of these stories because no one has any idea where those Bitcoins went because thats the whole point of Bitcoin isn’t it? No centralized oversight.
The whole concept to me just needs to be looked at with a different lens.
However, I find that the people that tend to favor this ecosystem are a bit hypocritical.
Bitcoin mining or the process of mining the numbers that convert into Bitcoin takes up an awful lot of power. Power that should be used for other purposes. Putting a strain on the physical infrastructure in the US with no regard seems like a little self righteous. Most of these nerds won’t eat anything but organic food and they do all these things to help Planet Earth and yet the very existence of these monstrous computer farms is destroying the very planet they supposedly love.
Happy Earth Day you fraudsters.
Think about the costs and the benefits of these farms. Immense costs. Benefits a very small portion of the population and only employs a small amount of people. You spend 200 million dollars building a factory that will employ 400 people. That makes sense. 200 million dollars to employ 15 people and benefit a group of ultra high net worth investors? Sounds like real old time capitalism doesn’t it. Something the nerd class abhors.
Hypocrisy abounds with almost all of the progressive end of the political spectrum. Electric vehicles, while reducing Carbon emissions create also create, on the production side, an ecological nightmare. The increased need for more and more electrical production is outstripping the ability to supply it. Wind farms and solar farms can not and probably will never meet the needs of this new Electric-Verse.
Again I digress but my point is, and always has been, that we are allowing ourselves to be taken into places we only understand a fraction of what we need to to make better investment decisions.
Bitcoin and the whole ecosphere of crypto crap is just, simply put, lemmings following a path that only leads to one place, a cliff.