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<\/a><\/p>\n(Natural News<\/a>) In a recent CNBC interview that\u2019s being widely touted by self-deluded Bitcoin promoters as some kind of \u201csmack down\u201d of JP Morgan CEO Jamie Dimon, Bitcoin advocate John McAfee accidentally admitted why Bitcoin is a total fraud that\u2019s doomed to fail.<\/p>\n In answering Jamie Dimon\u2019s recent declaration that Bitcoin is a fraud, McAfee replied: (see the video at\u00a0The Daily Sheeple<\/a>)<\/p>\n However, sir\u2026 you called Bitcoin \u2018a fraud.\u2019 I\u2019m 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 \u2013 it\u2019s called \u2018proof of work.\u2019<\/i><\/p>\n The problem with John McAfee\u2019s explanation, of course, is that it admits Bitcoins can only be created through the practice of computational\u00a0wheel spinning operations<\/strong>\u00a0where the difficulty and duration of such wheel spinning is artificially made needlessly complex by the Bitcoin algorithm. In a world where Bitcoins used to be created for less than one penny\u2019s worth of computational work, a single Bitcoin now requires over US$1,000 worth of \u201cartificial work\u201d to be achieved. A rational person must ask McAfee, \u201cWhy did Bitcoins used to cost just a penny to create, and now they cost a thousand dollars?\u201d The 100,000 X increase in complexity for generating a Bitcoin, it turns out, is an\u00a0artificial work algorithm<\/strong>\u00a0known as \u201ccomputational difficulty\u201d in mining.<\/p>\n This admission should be shocking to all Bitcoin holders for the simple reason that\u00a0if Bitcoin drops below $1,000, mining now becomes unprofitable<\/strong>, rendering a very large part of the entire Bitcoin mining infrastructure instantly obsolete. The only thing keeping Bitcoin mining profitable right now is the bubble pricing of Bitcoin itself, and because all bubbles eventually burst, Bitcoin mining will sooner or later reach a point where it\u2019s not worth the investment of hardware, electricity and time. (There\u2019s also the 21 million coin limit that\u2019s rapidly approaching, by the way, which will spell the end of Bitcoin mining as it is conducted today.)<\/p>\n Furthermore, the \u201cartificial work\u201d aspect of Bitcoin mining and its artificial computational complexity is\u00a0the digital equivalent of paying people to dig ditches and fill them in again<\/strong>\u00a0while claiming the activity boosts economic output. This idea, believe it or not, is the classic economic paradox routinely pushed by left-leaning economic myth-meisters like Paul Krugman. Those of you who follow economic news know that Krugman openly and wholeheartedly believes that government could boost the economy by literally paying millions of people to dig ditches and fill them in again. This artificial work generates real-world abundance, according to economic fools like Krugman. That\u2019s why Zero Hedge rightly posts an article entitled, \u201cWhy Paul Krugman Should Go Back To 5th Grade<\/a>.\u201d<\/p>\n And yet Paul Krugman\u2019s ditch-digging artificial work is actually no different than John McAfee\u2019s Bitcoin mining artificial work. In both cases, McAfee and Krugman ridiculously claims that work along has intrinsic value, even if little or nothing is actually accomplished in the real world. According to McAfee, computational expenditure automatically equals value, even when the notion is patently absurd to any rational person.\u00a0If CPU cycles equaled wealth, then no one in the world would ever have to work again<\/strong>\u00a0because people could just run computers all day and let the CPUs create wealth.<\/p>\n Any belief in such a system is, of course, irrational and absurd. There is no such thing as a\u00a0perpetual wealth-generating machine<\/strong>\u00a0unless you own the money supply itself and can hoodwink others into trading their effort for your currency. That\u2019s what the Federal Reserve does, of course, and that\u2019s the entire con of the\u00a0Bitcoin Ponzi scheme<\/a>: To recruit as many people as possible into the Bitcoin scheme so that they pay you cash in exchange for your CPU cycles.<\/p>\n Bitcoin\u2019s \u201cproof of work,\u201d in other words, is nothing more than\u00a0artificial work<\/strong>. Yet what is the real world result of such artificial work? While generating absolutely nothing that\u2019s real in the real world \u2014 remember as Steve Quayle says, \u201cIf you can\u2019t touch it, you don\u2019t own it\u201d \u2014 the Bitcoin mining process\u00a0consumes enormous amounts of electricity<\/strong>, computing hardware and time. Yet in the end, there\u2019s nothing to show for all that work except for carbon dioxide emissions and mercury pollution from the Chinese coal plants that power nearly a third of global Bitcoin mining. Bitcoin, in fact, has become one of the key vectors of environmental pollution that\u2019s causing hazardous air in California\u2019s cities.<\/p>\n McAfee claims that \u201cartificial work\u201d is actually \u201cproof of work.\u201d In reality, it\u2019s proof of nothing more than\u00a0the incredible stupidity of the mining infrastructure<\/strong>\u00a0which is now burning more electricity than a city of one million people just to keep the Bitcoin blockchain from collapsing.<\/p>\n \u201cSurely there\u2019s some value in the work that we did to create the coin,\u201d McAfee stated. But actually, there isn\u2019t any real-world value in it at all.\u00a0Bitcoin is a\u00a0digital fiat currency backed by nothing<\/strong><\/a>, and all the \u201cwork\u201d used to create Bitcoins is actually \u201cartificial work\u201d that\u2019s made artificially complex for no logical reason other than a crude mechanism for artificial scarcity. Yet even that scarcity is a complete failure, since any person can create and launch their own cryptocurrency alongside Bitcoin, instantly creating a massive new supply of crypto coins that flood the marketplace. (And many newer cryptos are vastly superior in design to Bitcoin. For example, Z-cash\u2026)<\/p>\n On top of all that,\u00a0Bitcoin is clearly not a store of value<\/a>, and recent research by Princeton scientists found that\u00a0Bitcoin isn\u2019t anonymous<\/a>, either. Bitcoin is also highly subject to government regulation, as the recent market plunges clearly demonstrated, following the announcement of China\u2019s largest Bitcoin exchanges closing their doors. Liquidations of Bitcoin by Chinese investors are already underway and will continue through September 30th.<\/p>\n One by one, all the promises we were told about Bitcoin have unraveled: It isn\u2019t anonymous, transactions aren\u2019t \u201cinstant,\u201d transactions aren\u2019t \u201cfree,\u201d Bitcoin isn\u2019t a reliable store of value, it isn\u2019t immune to government regulations and so on. Yet John McAfee, in his self-deluded cluelessness, points to\u00a0artificial work<\/strong>\u00a0and says, essentially, \u201cSee? We\u2019re expending CPU cycles for all this! Doesn\u2019t that have value?\u201d<\/p>\n Actually, it doesn\u2019t, Mr. McAfee. It has no more value than the GPU calculations of a nine-year-old kid playing a first person shooter on a Saturday afternoon. Yeah, his rig is running all sorts of complex calculations, but at the end of the day, there\u2019s nothing to show for it other than Cheetos crumbs that fell between the cushions of the couch.<\/p>\n Computation alone does not equal real-world value<\/strong>. John McAfee\u2019s attempt to conflate the two ideas only shows how deeply he has deluded himself about the future of Bitcoin. And those who falsely believe that computation equals value are only allowing themselves to be fooled by this non-logic for the simple reason that\u00a0they all own Bitcoin<\/strong>\u00a0\u2014 i.e. Bix Weir and others \u2014 and can\u2019t come to grip with reality without admitting they were wrong all along.<\/p>\n The bottom line? Bitcoin is headed for failure, but cryptocurrency is here to stay. The most likely long-term scenario in all this is that we\u2019ll see\u00a0a cryptocurrency backed by JP Morgan and the government<\/strong>\u00a0\u2014 a blockchain with built-in NSA snooping and an identity layer so that all transactions can be tracked by the IRS to enable government confiscation and criminalization as deemed \u201cappropriate\u201d by the crooks in Washington.<\/p>\n Once this \u201capproved\u201d blockchain is rolled out, it won\u2019t be long before government finds a way to criminalize all \u201cunapproved\u201d blockchains such as Bitcoin, Ethereum, etc.<\/p>\n And how hard is it for government to criminalize Bitcoin? Not hard at all: It\u2019s a simple matter to run a false flag dirty bomb operation \u2014\u00a0the FBI already masterminds and executes terrorist plots every day across America<\/a>\u00a0\u2014 then make sure the \u201cbad guys\u201d who are recruited into the sting operation are fully funded by Bitcoin.<\/p>\n A few hours later, the fake news New York Times will declare, \u201cCHICAGO DIRTY BOMB TERROR PLOT FUNDED BY BITCOIN.\u201d And the house of cards falls like dominoes. The entire media will be directed by the CIA to describe Bitcoin as a \u201ccurrency for terrorists, murderers and drug dealers,\u201d and Bitcoin will be targeted in exactly the same way the Silk Road was taken down. A few Bitcoin promoters will be imprisoned, the government will claim it\u2019s \u201cfighting terrorism,\u201d and the\u00a0clueless sheeple<\/a>\u00a0of society will applaud the news that they are being \u201cprotected\u201d by authorities.<\/p>\n Seeing all this play out is as clear as day. And why is this so obvious? Because\u00a0we are all living as slaves in a totalitarian society run by fake news, fake terrorism and fake authority<\/strong>.<\/p>\n Will that totalitarian regime allow all their central banks and government currencies to be made obsolete by a libertarian cryptocurrency they don\u2019t completely control?\u00a0Of course not<\/strong>. And anyone who believes Bitcoin will overthrow the globalist money \/ debt cartels is naive and stupid. Trust me when I say a bunch of geeks aren\u2019t going to overthrow centuries of globalist money domination that now rules our corrupt world.<\/p>\n See the full answers at\u00a0Natural News<\/a>:<\/p>\n Question #1) Apple produces iPhones. Amazon produces fulfillment services for millions of products. What does Bitcoin produce?<\/strong><\/p>\n Question #2) Bitcoin\u2019s \u201cvalue\u201d has increased by 350% in the last 12 months. What has Bitcoin introduced in that time period that would justify a 350% increase in its value?<\/strong><\/p>\n Question #3) Bitcoin is being promoted as a \u201cstore of value,\u201d yet it frequently will correct by 30% \u2013 50% in under 48 hours. What is YOUR definition of a \u201cstore of value\u201d and how does Bitcoin fulfill your definition?<\/strong><\/p>\n Question #4) If you are holding Bitcoin in the hopes of selling it at a higher price, how will you know when to sell it?<\/strong><\/p>\n Question #5) What does Bitcoin offer to secure its dominant market position that no other crypto-currency offers?<\/strong><\/p>\n Question #6) What is the profile of the typical \u201cnew buyer\u201d to Bitcoin today vs. five years ago?<\/strong><\/p>\n Question #7) How will you sell Bitcoin if the power grid goes down?<\/strong><\/p>\n Stay informed at\u00a0BitRAPED.com<\/a>\u00a0and\u00a0BitcoinCrash.news<\/a>.<\/p>\nBehold the logic of\u00a0artificial work: How John McAfee just embraced Paul Krugman\u2019s ditch digging fable
\n<\/strong><\/h2>\nTo produce artificial work, Bitcoin consumes enormous resources<\/h2>\n
Computation does not automatically equal value<\/h2>\n
Seven simple, self-evident questions that every Bitcoin holder should be asking themselves<\/h2>\n