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<title>Cryptocurrency is a ponzi scheme | ewy.one</title>
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<h1>Cryptocurrency is a ponzi scheme.</h1>
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<p>
The "ponzi scheme" is named after some italian guy that ran a business that used new investors' money to
pay old investors, making it seem like their investments were bearing fruit. Now, that probably doesn't
sound like cryptocurrency to you yet, but I hope to make a compelling case by the time you finish reading
this page.
</p>
<p>
Have you ever noticed when someone invests in crypto, and it immediately usurps them and becomes their
lifestyle? This doesn't happen to everyone, but I've seen it occur at a roughly 50% split. This happens
because their investment holds no inherent value. They simply purchased some immutable
bits: they don't mean anything, they don't do anything, but that's where the value comes from: they cannot
be changed. This is why the crypto-kings are so preoccupied with upholding the legitimacy of their bits.
They need new investors to uphold the value of their holdings, or it will implode.
</p>
<aside>
This side effect of crypto investments has, in my experience, ann about 50% chance of occurring.
</aside>
<h2>The blockchain is neither immutable nor decentralized.</h2>
<p>
The blockchain is not decentralized. Although you could run your own node - and waste hundreds of gigabytes
of your precious storage, not to mention bandwidth and processing power. Nobody wants to do this; this has
caused several third parties to show up and provide APIs for interacting with this blockchain. If any of
these APIs see cause for blocking (or - god forbid - alter) your queries, you'll have to move to a different
provider, not dissimilar to existing online payment systems.
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<p>
The blockchain is not immutable. If someone were, for example, to commit child abuse content to a blockchain,
or if there has been a major hack (this happened), the corporation managing said chain can simply roll back
to a previous version of the chain and start again from there. Although neither of the blockchains
prohibit the existence of the other, the value of the "currency" in the pre-fork chain will plummet to zero,
either because the robbed people want their tokens back, or because nobody wants to host child abuse content
on their node.
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