I ran across a documentary called “Crypto: The World’s Greatest Scam” by @jamesvjani He did a great job exposing scams in the crypto industry. But like so many others, he fails by including BTC with everything else. Here, I debunk this very misinformed and frustrating video 🧵
1) Deflation The purpose of money is to send value through time and space. The idea that money only works when it loses value is ludicrous. That’s the entire reason that you use your stock portfolio - to save for the future. Bitcoin brings this functionality back to money.
2) Scalability (Part 1) While it’s true Bitcoin can only handle around 7 tps, it should not be compared to things like Visa. It’s evolved to be more of a decentralized settlement layer and should instead be compared to things like FedWire which have similar throughput.
3) Scalability (Part 2) The Lightning Network is the payment layer built on top of Bitcoin which provides instant payments. THIS is what should be compared to existing payment networks like Visa, PayPal, etc. He failed to even mention this.
4) Proof of Work The idea that Bitcoin “wastes” energy is entirely subjective. The use of energy is the only way to distribute coins without insiders printing them for themselves. You cannot have a fair and neutral commodity without the use of energy.
5) Global Money Creating a new global money doesn’t happen overnight. It took things like gold hundreds of years to be recognized as money. The same could be true for Bitcoin. The process to become money is: store of value -> medium of exchange -> unit of account.
6) Ponzi Scheme The phrase “decentralized Ponzi scheme” is an oxymoron. If there aren’t insiders taking advantage of people, then it can’t be a Ponzi scheme. Bitcoin is completely open and transparent. No individual holds power over another. It’s money without rulers.
7) Summary This video has over 1.5 million views. It’s very clear that a large percentage of the population still has no idea what Bitcoin is. I’m not sure if this was done maliciously or with good intentions.. But either way, it’s pushing blatant anti-Bitcoin propaganda.This post is based on this twitter thread.