Watch Someone Explain Why Bitcoin Is More Legit Than the Dollar in One Minute

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bitcoin

Business mogul and Bitcoin enthusiast John McAfee appeared on CNBC Fast Money this week to respond to J.P. Morgan CEO Jamie Dimon’s claims that Bitcoin is “a fraud,” and he managed to shut down Dimon’s allegations in just over one minute.

“I would like to say this, Mr. Dimon: I respect you, sir, for your position. People who rise to your position are not idiots,” McAfee began. “However, sir…you called Bitcoin ‘a fraud.’ I’m a Bitcoin miner. We create Bitcoins. It costs over one thousand dollars per coin to create a Bitcoin. What does it cost to create a U.S. dollar? Which one is the fraud? Because [the dollar] costs whatever the paper costs, but it costs me and other miners over a thousand dollars per coin – it’s called ‘proof of work.’”

McAfee then went on to explain the amount of computing power and electricity that goes into creating the digital currency. “Surely there’s some value in the work that we did to create the coin,” he said, also pointing out that Bitcoin’s fluctuating value is nothing to sound the alarm over. “The fact that Bitcoin is consistently growing in its use and its value has to say something. You know, sure it will rise and fall and it is highly volatile, as all new technologies are. At the same time, it is certainly not a fraud,” he said.

When Fast Money’s host asked him about his infamous Twitter bet that Bitcoin will surpass $500,000 in three years, McAfee simply replied, “Oh, I don’t lose bets.”

We hope not, Mr. McAfee.

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  • renee ciccioni

    So his argument was it takes one thousand Fiat dollars to create a digital form of currency which only exist in the cyber environment , but I’m suppose to believe one is worth more than the other . Hum sounds like banker trickery , being both men would benefit financially by replacing something physical with something digital and hackable.

    • ReverendDraco✓ᵛᵉʳᶦᶠᶦᵉᵈ ᵃᶜᶜᵒᵘᶰᵗ

      His argument is that there is value in the work.

      Reading is FUNdamental.

      • There is always value in the work if someone is willing to do it.

        • ReverendDraco✓ᵛᵉʳᶦᶠᶦᵉᵈ ᵃᶜᶜᵒᵘᶰᵗ

          Precisely.

      • renee ciccioni

        I read it , alot of work went into producing a monetary product that is worthless and will just be utilized in the same way by the powers that be the same way as credit.

      • Phil_Ossifer

        A basic tenet of Marxist theory is that “labor” produces everything so the value of something is the amount of “labor” that goes into producing it. Hitting a couple of keys on a computer to create Bitcoin takes how much labor…?

      • jawnee logik

        Sure, but what he’s advocating is essentially, “digging a ditch then filling it in.” Over and over …

        Where’s the value in that?

        • ReverendDraco✓ᵛᵉʳᶦᶠᶦᵉᵈ ᵃᶜᶜᵒᵘᶰᵗ

          Your definition of mining must be different from everyone else’s.

          • jawnee logik

            I’m afraid it’s you who has a distorted view of what mining is.

            Mining is NOT simply digging! Mining has an end goal which is to extract minerals from the ground which can be further refined to make useful products. Useful, being the operative word.

            Bitcoin “value” is based solely on the amount of electricity required to solve the puzzle. Solving the particular puzzle provides no “useful” result. It is just work for the sake of expending energy. That same energy could be put toward a useful end. IMHO

            Let me make clear one thing. I am all for de-centralized systems of exchange. However, I believe that the only thing that is of true value in Human society results from the expenditure of Human labor. Even taking a breath requires an expenditure of effort.

          • ReverendDraco✓ᵛᵉʳᶦᶠᶦᵉᵈ ᵃᶜᶜᵒᵘᶰᵗ

            Extracting a useful currency is a de facto useful endeavor.

    • Rayven Wrathchild

      Not that hackable but very easy to lose it all since each transaction is encoded with a cypher and carried forward. The day you can’t decode you are SCREWED!

    • Harry L

      Can you provide any proof that the blockchain is hackable?

  • NonYo Business

    Dumb video but his main point was that the paper money was the fraud… He’s right, what is backing that value? Nothing. When we got off the gold standard, guess where all the USAs gold went?

    • Phil_Ossifer

      What backs Federal Reserve Notes is the government’s ability to legally use force, including deadly force, to make us comply with its diktats. Bitcoin has no such mechanism behind it.

    • darkhorse

      Clintons

  • Phil_Ossifer

    McAfee said, “Surely there’s some value in the work that we did to create the coin.” But he didn’t quantify exactly how much work went into creating it or what that work is worth which implies that he doesn’t know…or that there is almost no work involved and he doesn’t want to admit it, which just screams SCAM. Banks routinely create money with a couple of keystrokes but the money they create is backed up by government gunpower. Bitcoin is backed only by the faith of the people who trade it. In other words…it’s a pyramid scheme. And if anyone would know what a pyramid scheme looks like, it would be Jamie Dimon.

    • Geno X

      It takes a lot of computing fire the mining to generate the blockchain. I’d suggest looking into the process to understand the equipment and process involved. What’s fascinating is the currency’s self regulation without a centralized bank.

      • Phil_Ossifer

        If you’ve looked into the equipment and process involved, care to enlighten us? Notice how the proponents of bitcoin always make a big deal out of its value as a function of the world’s “reserve currency,” that is, the U.S. dollar (Federal Reserve Note). The only value it has lies in its convertibility into dollars. The U.S. government treats Bitcoin as a commodity for tax purposes, not a currency, and subjects it to different rules and regulations. And, when the whole pyramid collapses, who is going to bail out the “owners” of Bitcoin? The U.S. government through BARP (Bitcoin Asset Recovery Program) or some such? Sure they will…NOT.

      • What regulation?

      • Shandor1280

        What’s fascinating is to watch intellectuals fawn over the supposed value of a silly blockchain currency (which has been forked twice, by the way; so much for transactions everyone’s comfortable with) just as intellectuals in Holland of the 1600’s fawned over the value of…wait for it…tulips! Tulip Mania. In the absence of common sense anything is possible, even McAfee’s flights of eccentric fancy.

  • Apophasis

    “Surely there’s some value in the work we did to create the coin…”

    What? You spent a thousand dollars on shoving electricity through some computers, and so therefore you believe that the product of your work must necessarily be valuable? You believe that the product of your $1000 worth of “work” will be worth $500,000 in a couple years? Can I have some of what you’re smoking?

    By that “logic,” anytime I spend money and do work on anything whatsoever, I can rest assured that the product of my work will be worth multiples of what I’ve invested. By that logic, it’s not possible to waste time, effort, or money.

    Thus, I present to the world the apophasiscoin. There’s only one of them, and it took me over forty years to produce it, thus I figure that its value is nearly incalculable. But fortunately for Mr. McAfee and other savvy investors, bidding starts at a mere one trillion dollars. Buy now, because it will surely increase in value as others become aware of its great rarity and thus great worth…

    The dollar is a fraud and a weapon. Bitcoin is tulips, at best. We need an economy based on reality, tied to the real world, that accurately assigns values to things on Earth. We need an ecological economy that accounts the true costs of environmental destruction, among other things. Until we have a sane economy, speculative money will rush to silly bubbles, and we’ll waste a lot of energy chasing “profits” rather than building a world that actually works.

  • Rayven Wrathchild

    “It costs over one thousand dollars per coin to create a Bitcoin. What does it cost to create a U.S. dollar? Which one is the fraud? Because [the dollar] costs whatever the paper costs, but it costs me and other miners over a thousand dollars per coin – it’s called ‘proof of work.’””

    So they are both based on fiat currency being pumped into a system-whether dollars or some other material that can be created out of thin air.

    So if both require a currency that ends up being created out of thin air as a means for exchange to buy the bitcoin and then to convert the bitcoins to those fiat dollars is worthwhile?

    The fact is you need to do the same things as these banks are doing with their fiat currency ….. buy freaking HARD assets with the fiat currency while you still can get some value out of the money.

    Storing money in bitcoin is crazy in the long run. The only one getting rich are the founders and stock holders. All of them are CROOKS and McAfee is a coke head.

    • Phil_Ossifer

      Remember that kids’ game that used a big, black plastic “cherry bomb?” You wound the thing up and it started ticking, then you “hot potato-ed” it among yourselves and the person who was holding it when it “exploded” (it made a loud noise when it “exploded”) lost the game. A variation of musical chairs. Well, that’s how Bitcoin works. The object of the game is to not be the one caught holding on to it when it “explodes.”

      • Rayven Wrathchild

        I remember it Phil. In fact I think the game was called “Hot Potato” . I remember that big red plastic potato that was tossed about.

        BTW … nice pun of a name … philosopher .

      • SP_88

        The only difference is that unlike the hot potato, the longer the Bitcoin charade goes on, the more whoever is holding it will lose when it finally does collapse.
        Of course some of the loss will only be virtual, but at least some of it will be tangible. And by tangible, I mean the cost of whatever the initial buy in was. And it’s likely that it was initially bought with dollars or some other fiat currency, and using the word “tangible” to describe a fiat currency is inaccurate at best. But you know what I mean.
        If I spent $100 to buy Bitcoin, and it grew in value to $1 million, and then suddenly they became worthless, I’ve really only lost $100. But I would be pretty upset none the less. A million dollars is like a million dollars to me. But to some of these people, it’s pocket change.

  • Rayven Wrathchild

    What they are doing is STEALING someone else’s money. If the money belonged to them they would not have to “mine” to get a coin. They’ve have the proper code.

    • Phil_Ossifer

      Somewhere out there in cyberspace there is a small group of people who are laughing all the way to the (Swiss) bank with suitcases of Dollars and Euros the made selling Bitcoin to suckers. Like any pyramid scheme the only people who really make out are the ones near the top.

  • Mark Williams

    IMHO, until I can buy gas, food and pay my bills with it, it’s NOT currency. It’s a speculative investment!

    • Does that mean that you will starve before you can learn to barter?

  • pat doran

    best proof of Jaime Dimon’s comments about BTC being a fraud–given by Bix Weir who gave the source for his information, that after threatening to fire any of his employees buying BTC-and ridiculing his own daughter in public for buying btx-this poster child for psychopathy, Dimon’s own bank BOUGHT large amount of btc when he succeeded in driving the price down. THAT SHOULD PUT DIMON IN JAIL-but he says because he works for the federal corporate government he is immune to any prosecution.BEST EVER REASON GIVEN TO BUY BTC…AND DITCH THE FED AND THEIR CRIMINAL BANKSTERS.

    • freeinpa

      My question was rhetorical. I know the goal is to control and track every expenditure of the great unwashed masses

  • freeinpa

    Little discussed yesterday was the release of Treasury Financial Manual Bulletin No. 2017-12. This announced a policy change that government agencies may decide not to accept payments in cash or by check. This is a move by Treasury to go to an all-electronic Treasury. They define cash as currency or coin.

    What is the end game here??

    • Phil_Ossifer

      The endgame is the cashless and checkless society where all monetary transactions are done electronically. The reason (officially, that is) is the government wants to stop drug money laundering and payments to terrorists. In reality iIt’s all about controlling the sheeple and always has been. It’s hard to hide money in an electronic mattress.