Simple and undeniable proof that Bitcoin is a scam

[NewBet]

I don't think that it's scam  Behind BTC is very strong technology called blockchain.In my opinion bitcoin is proven legit.

Bitcoin is often called a scam or a pyramid by those who did not buy it, for example, for $ 100, and now, watching the current rate, bite their elbows and console themselves with the fact that "all this will collapse soon." Another category of people who consider Bitcoin a scam is those who have a bitter experience in dealing with cryptocurrency fraud. Some guys, due to their lack of education, do not even try to understand what trading is.

Not only is Bitcoin called a scam or a pyramid by those who did not buy it, but also by those who bought it and sold it only for the price to sky rocket to the moon and they couldn't get back in. Also, by those people who don't understand it, who think that it's some random fake digital currency but don't understand the underlying blockchain technology. To be fair, most people aren't experts in it... but we understand the point of it.

[teosanru]

There is one simple and quick way to determine that Bitcoin is scam, and that is: market price evaluation. In the case of legitimate market instruments, one can easily evaluate whether they are overpriced or underpriced in the market. However, in the case of Bitcoin this is impossible.

Examples:

If a bond with a face value of 1,000 dollars, a coupon of 5% and maturity in 2 years, is priced at 500 we immediately know it is underpriced. If priced at 2,000, we know it is overpriced. If an egg is priced the same as pizza we immediately know it is overpriced because these items are used for satisfying human needs and we empirically know that the utilization capacity of egg is lower that that of pizza. If a guy was granted a loan in the amount of 1000 units of fiat money and used only his Dacia Logan as collateral, but then he manages to buy a brand-new Bugatti Veyron for that money, we immediately know that one unit of his money was overpriced because the utilization capacity of Dacia Logan is lower than that of Bugatti Veyron. And finally, if the book value of a stock is 50 dollars we know that if it is priced at 10 it is underpriced, if priced at 1,000 it is overpriced.

As we can see, in all these examples we have objective, neutral and price independent factors that set up the level for determining whether something is overpriced or underpriced.

How can we do that for Bitcoin? What objective measurements set up the above mentioned level? How would we know if Bitcoin is underpriced or overpriced? Well, it is impossible to know this. Bitcoin is not a company, so it cannot be evaluated through book value or earnings. It is not a debt asset like bonds or fiat currencies, so it cannot be evaluated through face value or collateral. Bitcoin is not good or service, so it cannot be evaluated through utilization capacity. In short, it is impossible in principle to know whether Bitcoin is overpriced or underpriced. And that simply confirms the fact that there is nothing behind Bitcoin. There is no underlying value for evaluating the investment into Bitcoin.

Edit:just saw OP is banned so I don't think I am getting a reply 
This can be best seen through the comparison with fiat. Although, at first sight, it seems that fiat currencies have no underlying value, this is not true. Why? Well, because today's dollars or euros are debt based assets, i.e. they are products designed for people who want to consume goods and services today and return them in the future. These people are called borrowers. When the banks grant them loans, new dollars or euros are put into cirtualtion, which are then used  for access to the pool of goods and services that gets filled via economic activity of the general population. But since borrowers have to repay their debt with salaries they received for their economic activity - for their contribution to that pool of goods and services, this reduces their purchasing power, i.e. access to the pool. In this way they return goods and services back to the general population. All this is backed by collateral, and in case of borrowers default, their land, cars, houses and other property will end up in the pool of goods and services for the general population to buy with fiat that borrowers put into circulation. Now, are miners - those who put bitcoin into circulation, and in that way also receive goods and services from the general population, obligated to return goods and services back to the general population? No , they are not.  Is bitcoin backed by land, cars, houses and other property of Bitcoin miners? Obviously it is not. So fiat currencies are debt assets backed by collateral and this is their underlying value. Bitcoin on the other hand has no such value, and it is a scam - fake money/asset, designed to extract goods and services from the general population.


That is why one can invest into Bitcoin only on the basis of guesses, opinions, beliefs, or conjectures about its future value. These are then spread through advertisements and propaganda to attract new investors. And this is exactly how investment scams operate - in the absence of underlying value, all kinds of manipulative tactics are used to attract new investors.

Bitcoin is therefore a classical investment scam. It's just that it's well masked as a market instrument.

I don't know why this post from way back 6 months got bumped up but being a student of economics I would definitely love to answer this. It's absolutely true that the market comprises of all the assets of securities which are valued as per some underlying fair value. Now this in Economic or financial terms is called Intrinsic Value of that asset. Now does every asset has an intrinsic value?

Well to be true intrinsic value almost all want satisfying power is derived by the utility of each every person. Which means an asset which brings utility to me has a different value to me and a different to you. For example, If I am fond of pizza my utility for pizza will be higher and so will be the price I am willing to pay and same might not be true to you. So this is absolutely rubbish comparison.

Coming to the fact that BTC is an sort of security so better is a comparison with fiat. You said that fiat has some great value because of the underlying debt. But the fact is that if it would have got it's value from underlying debt then it's value would have been negative. It is derived from the GDP of a country and demand supply forces. While BTC too has a protocol which may not be physical but intangible and that doesn't means this protocol has no value? Moreover, what about gold? it's value is merely because of its scarcity as a metal and lusture. It has no economic activity going on. Same is the way with BTC.

[2double0]

It is well worth nothing if you are trying to show it as a ponzi here because if there sustains higher demand always over the total 'limited' supply of something, then I don't think you can call it out a scam. Gold and Diamond are two other forms of classic assets which are given value based on their quality, purity, cuts and clarity 'for diamonds specially' but these were all made possible due to institutions that came and gave knowledge about these specific agendas of the metal and hard rock, else during ancient ages, who knew about all these properties? They just gave it a simple value based on which groceries, clothes and even shelter was used to be bought through these. Is Bitcoin any different here? There is a difference, Bitcoin is 2 steps ahead, it is advanced and robust to leave behind all these old assets, monetary types and their systems.

[NeironixNV]

I don't think that it's scam  Behind BTC is very strong technology called blockchain.In my opinion bitcoin is proven legit.

Bitcoin is often called a scam or a pyramid by those who did not buy it, for example, for $ 100, and now, watching the current rate, bite their elbows and console themselves with the fact that "all this will collapse soon." Another category of people who consider Bitcoin a scam is those who have a bitter experience in dealing with cryptocurrency fraud. Some guys, due to their lack of education, do not even try to understand what trading is.

Not only is Bitcoin called a scam or a pyramid by those who did not buy it, but also by those who bought it and sold it only for the price to sky rocket to the moon and they couldn't get back in. Also, by those people who don't understand it, who think that it's some random fake digital currency but don't understand the underlying blockchain technology. To be fair, most people aren't experts in it... but we understand the point of it.

A lot of people, I think Bitcoin is a pyramid, but neironix made it clear to me that these people are mistaken and do not understand the fundamental foundations and functioning of this system.

[panganib999]

All of the above are valid concerns but hold true for gold and precious metals as well. Do you regard those as scams too?

Well the post could really make sense and has a point, but maybe people are being blinded with features of bitcoin that they didn't found on fiat. One of those features could be the decentralization of bitcoin, making tyhe assets of users be free from the manipulation of the government which people or investors highly prefer for they want complete power over their assets, who wouldn't want to, right? Plus the convenience. So no matter how sensible the concern said above, if people don't wanna believe you, they won't.

[Ashong Salonga]

I do not think that bitcoin is a scam. It is proven that it helps a lot of people even though the price falls. Maybe some people says it is scam because they do not know the reason why it is falling. There is no enough reason to remove their doubts towards it.

[hermawan9416]

Bitcoin is not a scam, it is an opportunity, and it is up to you to decide how you take advantage of this opportunity.

[Youghoor]

There is one simple and quick way to determine that Bitcoin is scam, and that is: market price evaluation. In the case of legitimate market instruments, one can easily evaluate whether they are overpriced or underpriced in the market. However, in the case of Bitcoin this is impossible.

Examples:

If a bond with a face value of 1,000 dollars, a coupon of 5% and maturity in 2 years, is priced at 500 we immediately know it is underpriced. If priced at 2,000, we know it is overpriced. If an egg is priced the same as pizza we immediately know it is overpriced because these items are used for satisfying human needs and we empirically know that the utilization capacity of egg is lower that that of pizza. If a guy was granted a loan in the amount of 1000 units of fiat money and used only his Dacia Logan as collateral, but then he manages to buy a brand-new Bugatti Veyron for that money, we immediately know that one unit of his money was overpriced because the utilization capacity of Dacia Logan is lower than that of Bugatti Veyron. And finally, if the book value of a stock is 50 dollars we know that if it is priced at 10 it is underpriced, if priced at 1,000 it is overpriced.

As we can see, in all these examples we have objective, neutral and price independent factors that set up the level for determining whether something is overpriced or underpriced.

How can we do that for Bitcoin? What objective measurements set up the above mentioned level? How would we know if Bitcoin is underpriced or overpriced? Well, it is impossible to know this. Bitcoin is not a company, so it cannot be evaluated through book value or earnings. It is not a debt asset like bonds or fiat currencies, so it cannot be evaluated through face value or collateral. Bitcoin is not good or service, so it cannot be evaluated through utilization capacity. In short, it is impossible in principle to know whether Bitcoin is overpriced or underpriced. And that simply confirms the fact that there is nothing behind Bitcoin. There is no underlying value for evaluating the investment into Bitcoin.

This can be best seen through the comparison with fiat. Although, at first sight, it seems that fiat currencies have no underlying value, this is not true. Why? Well, because today's dollars or euros are debt based assets, i.e. they are products designed for people who want to consume goods and services today and return them in the future. These people are called borrowers. When the banks grant them loans, new dollars or euros are put into cirtualtion, which are then used  for access to the pool of goods and services that gets filled via economic activity of the general population. But since borrowers have to repay their debt with salaries they received for their economic activity - for their contribution to that pool of goods and services, this reduces their purchasing power, i.e. access to the pool. In this way they return goods and services back to the general population. All this is backed by collateral, and in case of borrowers default, their land, cars, houses and other property will end up in the pool of goods and services for the general population to buy with fiat that borrowers put into circulation. Now, are miners - those who put bitcoin into circulation, and in that way also receive goods and services from the general population, obligated to return goods and services back to the general population? No , they are not.  Is bitcoin backed by land, cars, houses and other property of Bitcoin miners? Obviously it is not. So fiat currencies are debt assets backed by collateral and this is their underlying value. Bitcoin on the other hand has no such value, and it is a scam - fake money/asset, designed to extract goods and services from the general population.


That is why one can invest into Bitcoin only on the basis of guesses, opinions, beliefs, or conjectures about its future value. These are then spread through advertisements and propaganda to attract new investors. And this is exactly how investment scams operate - in the absence of underlying value, all kinds of manipulative tactics are used to attract new investors.

Bitcoin is therefore a classical investment scam. It's just that it's well masked as a market instrument.

First and foremost, do you understand the principle and economics of demand and supply? This principle makes us understand that, when there is an increase in the need for a particular product with a fixed rate of the product been produced, the market value of that product increases with respect to the fixed production rate. In the opposite way, if the need for a product is fixed at a specific rate and there is an increase in its production, the market value of that product decreases. With bitcoin, this principle plays a specific role in its market value determination. Bitcoin is never a scam. How can a scam be in existence for ten good years without having problems and failures? People need to just accept the fact that bitcoin is the future of money...

[Baby Dragon]

Bitcoin is not a scam, it is an opportunity, and it is up to you to decide how you take advantage of this opportunity.

It depends on a persons perception but I also think the same way because I know that it wasn't bitcoins fault to be associated with scams and no one wants to take the blame because scammers have different faces which makes it more difficult to find out the real scammers. There are a lot of people who used bitcoin to deceive others just to get the benefits that they wanted so I can't find any reason why it was accused as fraud. Its just that people doesn't have enough understanding between using it to scam and bitcoin is scam, well we don't have to force them to see it let them think what they want since we can't please everyone to like or understand bitcoin.

[Clement Kaliyar]

I do not think that bitcoin is a scam. It is proven that it helps a lot of people even though the price falls. Maybe some people says it is scam because they do not know the reason why it is falling. There is no enough reason to remove their doubts towards it.

Hope you have read what OP is telling, he is comparing to government bonds and its security to bitcoin which in itself is a dumb comparison . You cannot even claim the scam part with the falling prices, only stupid people who does not have any idea about any financial market will claim these stupid things.
You are in the market for a long time and yet you are not sure whether bitcoin is a scam or not  .

[uray]

That is why one can invest into Bitcoin only on the basis of guesses, opinions, beliefs, or conjectures about its future value. These are then spread through advertisements and propaganda to attract new investors. And this is exactly how investment scams operate - in the absence of underlying value, all kinds of manipulative tactics are used to attract new investors.

Bitcoin is therefore a classical investment scam. It's just that it's well masked as a market instrument.

Before coming up with accusation you need to study and understand what you are talking about, bitcoin is not a private company to attract investors so that they can run with the money collected and if you understand the basic market structure you will not write these dumb things, still you have time to understand the market as everything is publicly available and i am sure you are not having the technical skill to understand the codes but if you can then you can test those too .