Perception Archives - Idealbroker

BITCOIN – A Fraud and Ponzi in a Disillusioned World – Daniel Mankani

November 5, 2017

First things first lets understand this “The World is Disillusioned with Social Media Imaginary Lives” Ongoing Economic and Monetary Systems Transformation and there is indeed a whole lot of confusion on how the world tomorrow will evolve.

There are many questions and many responses to this but one thing for sure, its Bitcoin is not money nor its a stored value of an asset, it will never replace currency nor its has any of the attributes of Gold or Currency.

In the midst of all this Bitcoin has emerged as the best performer across various asset classes to which its compared against and now been told it will replace the means of transacting across borders and its value to continue increasing in a case of be it all and end all.

Human Greed knows no bounds especially so if its a subject out of disillusioned minds.

In the era of Fake News and Deregulated markets where accountability takes backstage coupled with a over educated under utilized millennium generation, Bitcoin is more of Fraud and a Ponzi and you may call it the revenge of the nerds.

Driven by fear of missing out and with various superior looking scientific yet false justification of “i know its better but I don’t know how, this has fueled Bitcoin’s Market Valuation and Price.

Its Greed and Fear Combined, Perception of disillusioned minds. A fraud of no other kind and a Ponzi at the same time.

In 2017 alone. Bitcoin meteoric rise has seen its total market value rise to over 100 billion dollars. Click to enlarge.

Bitcoins 100 Billion Dollar Valuation obtained in a shortest period of time. Click to enlarge.

For any asset to remain as a stored value and become one as a currency, it needs to have three key attributes without which its just another Fraud and a Ponzi at the same time.

It needs to have an UNDERLYING to give its stored value, It needs to have a UTILITY without which there is no demand to hold and lastly it needs to have LIQUIDITY which is non volatile.

Attributes which Bitcoin doesn’t have.

Underlying Resource: An underlying resource of some kind is necessary to give any derivative its value against which the derivative is bench marked, US Treasuries and even Fiat Currency for example have an underlying asset class to back them up, Government revenues and Taxes are the underlying for every currency where economic growth and monetary management defines the currency value.

Gold is the perfect hedge in an stagflation environment in which we are currently in and Bitcoin is not gold, It has no underlying of its own to compare with to gold or to a currency and such perception is very much flawed.

It is wrong to say that Bitcoins Energy Consumption gives its underlying. It does not. Click to enlarge.

It is wrong to say that Bitcoins Energy Consumption gives its underlying. It does not.

Just cause someone found out a water front property and build on it an exclusive luxurious home, spending huge sums of money to make it beautiful and comparing its construction costs as input of value and then comparing it to the prices in demand and further speculating that if just a tiny bit of demand comes from there, the prices will escalate to those levels in a fancy of disillusioned minds.

You can’t compare an sparsely populated island in the pacific to that of one which has demand and it’s no matter on how much money you spend in making it luxurious, its a waste of effort and time.

Bitcoins hash rate, efficiency of mining determining input costs. Click to enlarge.

As the difficulty increases in mining of coins in order to make it a finite resource, more energy is consumed as efficiency drops and it then becomes scarce, this is the mathematical equation behind bitcoins miners and developers illusion, assuming that the input costs are part of the underlying, when its not.

Bitcoin Energy Consumption to determine underlying replacement costs. Click to enlarge.

Bitcoin uses more electricity than Uraguay, Kyrgyzstan, and Paraguay, yet what is the productivity use or value created out of this?

Bitcoin-Energy-Consumption-vs-Ranked-Countries. Click to enlarge.

Gold is a finite resource with utility which makes it of asset of stored value of no other kind.

Bitcoin-vs-Gold-Total-Annual-Energy-Consumption. Click to enlarge.

While it only takes 1.4 barrels of oil equivalent to produce an ounce of gold, it takes 10.1 barrels of oil equivalent to produce one Bitcoin.

Bitcoin-vs-Gold-Total-Energy-Consumed. Click to enlarge

Therefore as per the Maths.

Bitcoin-Production-Cost-Bevand-as per May-31-2017. Which today is closer to 1800 per coin generated and rising. Click to enlarge.

Hence, anyone investing in Bitcoins needs to understand the total dynamics behind them and understand which asset if behaving more like a bubble.

Bitcoin-vs-Gold-Cost-vs-Market-Price, Click to enlarge.

Now if we are in agreement on input costs and the underlying just been a waste of valuable energy resources to output a single coin, lets look for the second most important attribute of that of Its value creating UTILITY and you will find there is none except for illegal money laundering, and stashing of hidden wealth from which Bitcoin has benefited enormously from the chaos and collapses of various economies across the world.

In fact Bitcoin founding and origination is mired in Mystery with rumors of the founder himself owning a million coins and we have various reports from a couple of years ago where sites which accepted Bitcoins in its infancy were gifted hundreds and thousands of coins.

First things first, If you are investing in either Bitcoin or Gold, it’s important to understand which asset is behaving more like a bubble than the other and Bitcoin is clearly a bubble and a Ponzi which needs fake news to thrive on.

Fake news, bitcoin is be it all and end all.

Bitcoin Flyer, more fake news.

Soon the USA Government

Bitcoin Bandit

Bitcoin will starve the banks fake news

Santa Claus is coming early this year.

Whipee its going up and up

bitcoin-money laundering activities.

Jimmy Loves Bitcoin. Jimmy needs to understand front running in unregulated markets leads to fraud and scam.

Listen to the audio file below to understand the meaning of front running, it happens a lot in bitcoin where the order fills are not in accordance to price. Exchanges and brokers are part of this scam, while people without any background and understanding are been suckered in.

More Fake News. Do you know Bitcoin is worth a Million and Why.

Bitcoin is still tiny, a sparsely populated island compared to the one in demand. If this is not scam than what is it?

More Fake News. Its going to a million and here is how?

For those who are unaware of a Ponzi which is also a bubble. Look up Tulip Mania.

Its unregulated and largely biased by the few who profit the most out of the high price. Caveat Emptor if you are invested.

Bitcoin needs a constant barrage of fake news and steady stream of new incomers into the scheme to justify high prices, if this is not a ponzi that what is? Its highly fraudulent by the misrepresentations occurring coupled with “Front Running” activities of brokers and exchanges in tandem with such activities.

Steve Wozniak misquoted, every statement is manipulated for higher price.

Bitcoin Fork. If Bitcoin is decentralized, then how come some minor parties, not majority, decided to create a fork and outputted a new coin? Isn’t decentralization on the basis that no single parties or minor group of parties members can control or direct outcome without the consent of the many.

Who benefits. The multiplicity of money. A revolution of no other kind.

In Conclusion, Fools and their money part always fast.

What 2017 will bring?

January 16, 2017

The Sanity of Man. Each one wants to know,
what 2017 will bring. – Daniel Mankani

Such is the time, of the year, where every great mystic,
wants to try out his mind. He predicts the future.
What he is really identifying; it’s the trend. Is it not?

The Path of Least Resistance.

Its not hard, but its all there to see. But you choose sometimes, to do not,
maybe on the basis of fear, of what, your mind might see.

Fact is; Nothing is by surprise, but by design.
And those design patterns are all out there, for every one to see.

Here is an example; of what we have witnessed, over the last few years to a decade.

Trends. Geo-Politics.
1990-2000 {Russia withdraws from Afghanistan, after a defeat, Russia was kept engaged in Afghanistan for so long, that in fact, it ran out of money, This was the Russian default and the collapse of USSR.

{ Fact is; Russia was by design, kept engaged for so long, only cause of the Taliban, which was a proxy warrior team of the CIA, Russia was already engaged in a losing war, a war, where a systematic disciplined force, couldn’t perform against guerilla tactics of the rebels, which made Russia run out of Afghanistan in DEFEAT, and this only happened within 12 months, of the rebels, obtaining the stinger missiles, cause it was by design, that engaging your enemy on the battle field, for so long, that it expends all its energy and depletes all its resources, will eventually ensure its collapse, a strategy deployed in the art of warfare for centuries. Hence, despite the Americans owning such missiles as far back as the early 1980’s, they didn’t give those to the Taliban earlier than 1989, hence the reasoning is a good strategy, played out of design, a pattern can now be recognized, if this ever happens, ever again. }

2000-2008 {America finds itself under attack in 2001. Its response; starts another war in Afghanistan, against the very rebels, that they once owned. Next comes a war in Iraq, then, comes the 2007-2008 Great Depression.

{ Fact is; America finds itself as the only super power, which then; engages in various overseas expensive, non productive adventures. Many of them engaged in without any reasoning, just the drums of war for no apparently reason, possibly GREED, all legalised on by great speculation, acts of crime was been committed in the name of democracy for the world. America over the last centuries have bombed more than 50 countries, just to retain, its hold as a super power. Truth is America; is on a decline as it lost its, higher ground of morality, its adventures in Iraq, were build on false premises and greed, since most politicians of that time, were all involved in IRAQ deals, this by itself, became exposed and everyone, who had the eyes to see, , this then in itself, empowered the world. One by one, everyone questioned, What Moral Authority, whenever America called out a Red Line, no one took heed, Today; America is on a state of decline, a vanishing super power, and with huge debts on its head.

2008-2012 { Global Revolutions brought about by extreme high commodity prices, partially caused by the EL NINO, affect. Revolutions broke out in almost all parts of the middle east, all within a very short time. And the ramifications of those, looked like it could also happen worldwide simultaneously.

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Perception

BITCOIN – A Fraud and Ponzi in a Disillusioned World – Daniel Mankani

Attributes which Bitcoin doesn’t have.

Caveat Emptor,

What 2017 will bring?