Virtual currency is air currency or digital coupons that are not anchored to any resources. It is like a piece of candy wrapper drawn by a child, claiming to be gold. If you believe it, you are deceived out of real resources; if you don't, you lose nothing. Its value relies entirely on marketing manipulation. Without speculative news or deceptive theories, it cannot survive, as this system was designed to deceive from the beginning.
Blockchain is not a database; it is just a network file with access control (POW). The designer is unwilling to bear the maintenance costs of a distributed system and has designed an internet scheme to deceive miners into operating for free using worthless virtual currency or to maintain operations through virtual currency scams.
The two complement each other.
I try to express my views from the essence of currency and the essence of blockchain. Blockchain has neither technological advancement nor is it a database; it is merely a controlled file service for the Bitcoin scam. Bitcoin is neither currency nor has value, it is issued randomly and is unrelated to the economy, only related to the brainwashing of scams. The two complement each other. Remember, anyone who is still promoting blockchain now is basically a scammer. It does not matter to look at what scammers say; the key is to protect your money.
The article is lengthy, and its logic and facts can withstand scrutiny. Please read patiently.
Scam proved from the essence of currency.
1) Currency payments do not generate currency; they merely transfer from one pocket to another, keeping the total amount unchanged. Borrowing creates currency, and external investment generates currency within a country through exchange rates.
2) First, new resources (new natural resources or foreign currency investments in the domestic market) are injected for exchange, then new on-paper currency is created through bank loans (including government IOUs) or foreign exchange settlements, and finally, cash is printed based on actual needs during actual cash usage. Individuals receive paper currency from banks, and banks get it from cash management centers (tokens like those from Satoshi Nakamoto are simply air-minted without physical support, and actively printed gold round vouchers are of the same nature; paper currency printing is a benign passive minting process based on actual resource demand and actual exchange activity demands).
Now you should know which scammers define the essence of 'currency is credit' as a scam, and that the claim in humanities papers that 'the essence of currency is debt' is actually just a cause for the emergence of currency, not its essence.
3) From a global perspective, as humanity discovers natural resources for exchange, the total amount of currency will inevitably increase. In the long term, there is no scenario where economic activities rely on a fixed amount of currency (Satoshi Nakamoto's theory of fixed currency quantity is a complete scam born from a total misunderstanding of currency).
4) Whether it is foreign currency outflow or the active destruction of paper currency, it is very difficult to destroy the truly increased currency (excessively issued currency). If the excessively issued currency cannot be locked in circulation within financial institutions, it will lead to inflation (the Federal Reserve's interest rate hike aims to lock up the excess currency issued by the U.S. government during the pandemic, and China's original real estate water reservoir operates on a similar principle).
5) Only through a period of economic development, new resource exploration, or new foreign capital inflow can the newly injected resources keep up with the excessive issuance of currency and stabilize inflation (Satoshi Nakamoto fundamentally does not understand these issues; please consider the current situation of China's real estate and foreign investment).
6) Due to the characteristic that currency is difficult to destroy (especially currency generated from borrowing), it is challenging to maintain a balance between the actual amount of currency needed for exchange and the actual resources that can participate in the exchange. It requires objective control from national central banks represented by the Federal Reserve, without the mixing of subjective political considerations (this is essential, but due to the independence issues between central banks and governments, many countries find it difficult to achieve this, which is why many so-called experts frequently slap themselves in the face using their domestic political perspectives when predicting the economic actions of the Federal Reserve).
What exactly is blockchain?
The management costs of issuing, anti-counterfeiting, transporting, tracking, and destroying paper currency are very high, especially since tracking is not very feasible. Therefore, most illegal transactions use cash, and not all countries can print paper money. In contrast, the issuance, transmission, and processing costs of digital currency are very low and easy to track, but they are easily copied. The challenge of digital currency is how to prevent it from being copied and tampered with, ensuring uniqueness. The simplest way is to record every transaction, and each record is linked with a digital signature to prevent tampering. However, relying on a single data center to record payment usage records across the country or globally is insufficient. They also do not want to build distributed data centers. However, the internet has become a global network. Thus, it requires enticing connected servers to join and dynamically selecting the most powerful and lowest latency servers as distributed bookkeeping centers, leading to the design of a mining mechanism, resulting in the birth of blockchain. Therefore, decentralization and mining are not the goals of Bitcoin and blockchain but rather an unavoidable choice due to the impossibility of centralization. The best solution is a planned, fixed, and reliable distributed data center model (distributed ledger), rather than a dynamic blockchain. As for exchanges, they are dispensable for digital currencies, but if they exist, they can be packaged as currency exchanges, allowing gambling to occur, and Bitcoin can become chips. As for decentralization and currency, these are just deceptive phrases for outsiders. When you believe it is a currency asset, the inherent topics become richer, carrying technical viewpoints, making it easier to deceive people. Just think about it; is this the case...
Bitcoin itself is a dispensable target in this experiment, while the fundamental purpose of testing the anti-counterfeiting, anti-duplication, and anti-tampering of digital currency is to solve the uniqueness problem of digital objects once successful.
Using worthless Bitcoin to tempt mining experiments is itself a self-biting tail, while the starting point of dynamic distributed bookkeeping has transformed trust in a particular central node into trust that the majority of people will not lie, thus developing into a mechanism. However, this worthless object is treated as faith, and those who have read 'The Crowd' or understand herd psychology know that 'group lies' are a common phenomenon.
As for the reality of the cryptocurrency circle, it also overturns the trust assumption that Bitcoin bookkeeping relies on.
Technical explanation of blockchain.
Blockchain technology is actually a digital file anti-copying and anti-counterfeiting technology. It prevents duplication and counterfeiting by fully recording a digital file from its creation to each use.
Satoshi Nakamoto, who came up with this plan, did not want to maintain these records himself. He used partitioned blocks and decentralized marketing rhetoric to fool others into maintaining them. The way to deceive was by issuing coins and loudly claiming that this coin represents the future digital Coin and is valuable while packaging those who maintain the records as decentralized. The so-called trust Byzantine problem refers to how to prevent others from deceiving him into working and cheating the digital Coin.
Its essence is an archive file block locked with a digital signature. The idea is similar to the inode approach of the Unix file system in the 1960s. The marketing packaging method is highly deceptive, making those who do not understand operating systems, those who love fast food, and half-baked technical personnel believe it is a new technological trend, helping to boast about this technology that cannot be put on the table. However, the idea of using the network and signatures to split the entire network's hosts into text nodes, as well as the marketing concept of decentralization and self-proclaimed currency, is still quite creative. Using seemingly technical jargon to package old wine in a new bottle, borrowing seemingly currency theories to elevate oneself, this high-level operation is astonishing.
How Bitcoin and blockchain have developed by leveraging human nature.
All scams originate from the white paper written by Satoshi Nakamoto, which is regarded as a bible by Bitcoin enthusiasts. Moreover, you will find that the vast majority of scammers or so-called experts have basically never read the original English text or do not understand English.
In this article, the currency is consistently referred to as COIN rather than Currency. However, this article refers to the Bitcoin system as a Cash System.
What is COIN? Anyone can issue COIN, such as tokens in children's playgrounds, virtual coins in online games, QQ coins, casino chips, Texas Hold'em, and Monopoly game chips can all be referred to as COIN.
What is Currency? It can only be considered Currency if it has value and can be used to exchange any basic life production resources in the market.
According to this basic definition, the game of Bitcoin is that Satoshi Nakamoto invented a self-proclaimed CASH system, which is essentially a system for swapping and verifying casino chips and recording the ownership of those chips. However, Satoshi Nakamoto found the management and operation troublesome and wanted to use a P2P model to find lackeys to operate without paying. Thus, in the article, he deliberately referred to this COIN system as a CASH system and used the issuance of COIN and grandiose phrases to recruit less intelligent but technically capable lackeys to compete for the labor of bookkeeping. The technical ability test mainly involves computing power and network response ability, and successfully recruited lackeys will receive a token. In order to turn this worthless token into usable real money, these foolish lackeys in front of Satoshi Nakamoto erupted with unparalleled creative phrases: they transformed the consensus bookkeeping mechanism originally used to prevent lackeys from deceiving Satoshi Nakamoto into a safety mechanism for users of the currency, raising a grand anti-financial institutional banner, referring to the worthless token as the future currency, substituting currency for coins, only calling it CURRENCY instead of COIN, and calling the activity of exchanging real money for worthless tokens an investment in future currency... They labeled a fundamentally single network-distributed file as an innovative distributed data management system and referred to an outdated and inefficient file solution as innovative technology and future technology.
Because of these false but innovative phrases, so-called experts who flaunt in academia have sniffed out opportunities to publish papers, rich topics on the internet, and open-source but very simple codes have provided opportunities for those technically inadequate small companies to deceive large clients. The globally unorganized operation of the Bitcoin network and the low technical difficulty of exchanges have also provided a good platform for money laundering to escape foreign currency supervision. This series of by-products has expanded this scam to various levels, forming a modern digital tulip event in many fields through the phenomenon of passing the parcel. Time and practice are the best tests for scams; it is not yet the moment for the scam to burst, but it is already near.
Blockchain as a technology has proven to be a scam. The Maersk and IBM blockchain system, which ran for five years, was abolished and reverted to traditional databases and cloud methods for reconstruction. Many blockchain projects have been abandoned, as the functionality of blockchain is limited, efficiency is low, development is extensive, and maintainability is poor, causing great suffering. Even the Bitcoin system, which could have been easily upgraded with traditional methods, has been struggling with an ugly fork solution for a long time and still has many issues.
Many tokens are essentially fleeting, money-grabbing schemes. Only Bitcoin and Ethereum are still actively operating for the sake of reputation and credibility. However, regarding the fatal issue of P2P schemes, when the lackeys do not trust this thing, and players no longer play with it, this scam will come to an end. Moreover, the coins you own are just an entry point, not the whole of the coin. According to Satoshi Nakamoto's white paper definition of a coin, only by owning all the information from the issuance of the coin to the present can it be considered a coin. Therefore, the vast majority of people have never truly owned a coin; they merely hold an access entry while watching the exchange rate of others' chips and real money, mistakenly believing they are wealthy. Due to user anonymity, one person can use multiple wallets to easily swap left hand to right hand and let you fantasize and fantasize about the exchange rate. It is too easy to deceive novice players with false sensations. Only when exchanging back for real money can Bitcoin players know whether they are losing or winning, but all the real money of the winners is the principal of the losers.
One tree does not make a forest, and a lonely sail does not go far! In the currency circle, if you do not have a good circle and do not have insider information, then I suggest you follow Lao Wang, who will help you ride the wave and welcome you to join the team!!!