Bitcoin (& other crypto-currencies)
Understanding (some of) the REAL Dangers of crypto-EWMDs
(and with Facebook announcing their launch of Libra crypto-currency EWMD)
BUT, to understand that crypto-currencies are EWMDs one needs to understand that Opticks (wrongly attributed to Newton) are wrong → e≠mc2 ; Refraction is NOT Refraction; that Einstein, Hubble, Hawking, Higgs, CERN etc. are wrong; Quantum Theory contradicts Classical Physics because QT is wrong; etc., etc., etc. …....
(Note: CDADD's papers are stand-alone, some sections are cut&paste from past papers for ease of explanations, hence repetition may occur.
BUT, remember, every time you say e=mc2 you are repeating defective science- for, e≠mc2 )
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(Bitcoin. The Future of Money? Dominic Frisby – ISBN 978-1-78352-077-0)
Frisby's Bitcoin book is useful as a background to the origins of Bitcoin (& some other altcoins or crypto-currencies), but so too are a number of youtube videos -
Frisby styles himself as a comedian which is evident from his website dominicfrisby.com – his posts are amusing, thoughtful & entertaining – but blatantly defective in Science/Engineering reasoning.
Frisby has, somehow, lauded himself with 'qualifications' on Economics, Finances, Politics and suchlikes but without any academic qualifications or subsequent experience, and this comes across clearly in his Bitcoin book.
Yet it is interesting to note how many people are duped by Frisby's unqualified & defective arguments – 18 positive comments are listed in the front of Frisby's book, from newsmedia persons, an MP, through to 4 anonymous Amazon reviewers → the blind leading the blind.
The cover of the book gives the quote: 'Read it and glimpse into the future' – this by Richard Branson, an international criminal, and one that was instrumental in duping Margaret Thatcher into thinking his business 'success' (based upon international frauds-mechanisms masterminded by Donal Gordon) was justification for 'Privatisation', all of which is largely why the World is now in increasing Socio-Economic turmoil.
(Ryanair also achieved its 'success' through similar frauds-mechanisms – KPMG are attempting to bury the evidence. Fledging businesses that later achieved phenomenal 'success' are likely to have adopted similar frauds-mechanisms)
Frisby makes the usual mistakes of freely mixing micro & MACRO economics/finances – which is as disastrous as attempting to directly connect your hairdryer (micro) to the national grid (MACRO) – or thinking that money (micro) in your pocket (or crypto-wallet) is the same as MONEY (MACRO) – micro factors have ZERO impact at MACRO level - but, because Frisby has popular appeal, largely because of humour, he can readily mislead people with his unqualified & defective arguments – thus: bullsh*t baffles brains.
This is not to suggest that Frisby is not sincere in his defective arguments – unlike blatantly dishonest academics such as Brian Cox, Jim Al Khalili, Marcus du Sautoy, Richard Dawkins, David Attenborough & many other pop-TV celebs who have traded Professional Integrity for popularity & money.
No, Frisby genuinely believes he is right in his defective arguments – not unlike quacks believing they are doctors.
Frisby also writes for MoneyWeek on investment matters → as yet Frisby is not able to detect the frauds perpetrated by the likes of Richard Branson, Alan Sugar, Warren Buffet, Bill Gates, Ryanair etc., etc., etc., - so his advice & analyses are, upfront without recognising his lack of qualifications & experience, clearly questionable → ??????????????????
Frisby's article on gold is a case in point of one amongst zillions of defective arguments littering the web - https://moneyweek.com/508448/secret-bull-market-in-gold-and-the-global-collapse-in-trust/
It is very easy for anyone to 'qualify' themselves as an analyst – simply put up a bunch of graphs and make obvious statements about them, but not having any understandings of Socio-Economy REALITY at a MACRO level.
This is not to say that, by sheer chance, that some of Frisby's advice is not right – but whether Frisby's advice is right (by chance) for the right reasons or (most probably) for wrong reasons is a factor that needs to be assessed case-by-case – but then it becomes extremely tedious trying to dissemble the many arguments by Frisby to determine which, if any, are right, and whether for right or wrong reasons.
A commodity can NEVER EVER present as a store-of-value characteristic, nor as a STABLE medium of exchange, nor as a stable medium of account (synonymous with 'exchange') – that a commodity, on any one of these characteristics, is perceived as such is a common misunderstanding of MACRO Economy factors.
To understand (a little) the real problems facing the World, which Bitcoin will only exacerbate, see:
There is a fundamental factor as to why the World's population is increasingly disparitised (including today's youths in developed countries not being able to afford their own homes) and increasing (at an increasing rate?) - and that is that nobody has Engineered a sound, optimally stable Socio-Economy system – BECAUSE Socio-Economy Engineering has never been developed (CDADD's R&D even though pioneering such developments merely scratch the surface)
Consequently money does not adequately reach those disparitised & what little reach that is achieved is easily & quickly stripped out.
A few defective arguments by Frisby in his Bitcoin book (which is littered with many, many, many more):
(and which defective arguments are commonly found amongst Bitcoin (Altcoin) supporters)
Pg 4: Arguing one commodity's (bitcoin's) benefits against another commodity (e.g. gold) is pointless as both, being commodities, are destructive to Socio-Economies. Most Currencies are readily interchangeable, but a currency becomes a commodity when it is freely traded; i.e. it is driven by Supply, not by Derived Demand (similar arguments apply also to normal stock shares being traded, hence become commodities)
Pg 13: 'Proof ….. of Trust' – arguments against 'Trust of Governments' are interchanged with Trust of Currency and proofs of same. 'Proof' and 'Trust' are synonymous. The issue is: does one TRUST reasonably transparent Governments or TRUST a non-transparent ethereal money system? - but with TRUST being a vague value descriptor that no one can actually define or recognise as being present or not in either case.
So the TRUST or PROOF within Bitcoin is as unverifiable as it is for Governments.
(Also: Bitcoin is about as transparent as an iceberg, which only shows c10% of its mass)
Corollary: 'Proof' & 'Trust' also imply FAIR – fairness to all – but these crypto-currency developers have given no thought to MACRO Socio-Economy issues, solely to micro issues & most largely to their own issues (witness bizarre $-price volatility) – therefore, by induction, their technology is unfair at the micro level and will exacerbate Population expansion, Poverty, Disparity & Starvation Genocides
see also:
Pgs 45ff regarding failure of MtGox → QED!!!!
Pg 71: crypto-currencies accelerating crime&drugs
Pg 17: 'The [Bitcoin] database provides the mathematical evidence – the so-called 'crypto-proof' – on which Bitcoin is based'
The proof & trust are as above.
'Mathematical evidence' – mathematics can be manipulated to assert whatever position one wants to pre-determine (which is the very reason why John Nash was awarded the Nobel Prize – his models are used to legitimise' otherwise fraud scams, massive & global – see series: 'Economists' inexact models exactly defective; at cdadd.com)
Pg 25: 'What's more, the core [Bitcoin] technology has so far proved unhackable.'
This vague 'assurance' offers no comfort and completely CONTRADICTS statements of 'proof' & 'trust'. Any&all systems can be hacked.
Pg 30: Technology of 'printing money' versus 'crypto-currencies'
Certainly technology brings about differing forms of currency – but the underlying Socio-Economic (SE) problem of structuring optimal SE-systems that fairly distributes money to all regions is not solved by any of these forms of currencies, and the more non-transparent the harder it becomes (witness Margaret Thatcher being duped by international criminal Richard Branson into bringing about this massively destructive, unprotected 'open economy')
Pg 85-148 these pages are boring speculative arguments as to determining who Satoshi Nakamoto is → ?!?!?!?! - a total waste of time.
Pg 150: Gold, gold standard, fiat money, printing money -
Frisby's arguments regarding historical difficulties (ALL stemming from zero understanding, or even recognition, of Socio-Economy Engineering) pertaining to money base, supply& distribution has not been solved by Bitcoin or any crypto-currency.
This is self-evident as a Socio-Economy system is EXACTLY that, 'Socio' - crypto-currencies are not 'Socio' but 'sole' – banking systems despite their gross inadequacies are 'Socio', but also provide crypto-currency within the same network – thus banks are far more versatile than are pure cryptos.
(Socio → Social → MACRO)
The failures by governments/banks in solving the Population/Wealth Disparities etc. does not legitimise the development of anti-social 'sole'-cryptos
[It is the CRIMINAL DERELICTION/NEGLIGENCE by Governments/Parliaments (mainly western, developed) for ignoring these realities, and ignoring Socio-Economy Engineering, and thus CAUSING increasing rate of Population Expansion through to Starvation Genocides – and more effectively than the Nazis could ever have dreamt of.
WWII was fought to overcome the evil of Nazism – but western governments surpass Nazi evil – this can readily be seen by watching some short videos by UK House of Commons Speaker John Bercow who deceptively sets out the Speaker's role – Bercow has, for over 10 years, ignored the CONCRETE EVIDENCE of corpOrgCrime, grossly defective science theories, etc., etc., upon which UK Parliament allows disparities through to Starvation Genocides to continue. Bercow explains how Urgent matters can be brought to the House, but Bercow is purposefully blocking pertinent urgent issues => no democracy
In short: 'sole' crypto-currencies have arisen mainly because of Government/Bank dereliction/negligence pertaining to Socio-banking systems, and their ignoring of Socio-Economy Engineering in particular.
There are other arguments pertaining to Pg 150 – but the purpose herein is to disprove cryptos as being beneficial to society which has been achieved.
Pgs 153-158 – Inflation/Wealth Gap
Frisby gives grossly flawed micro arguments wrongly inflated to MACRO level – and fails to understand the difference between 'targets' & 'indicators' – an indicator is not a target (e.g.: inflation, gap, interest are all indicators, NOT targets)
see above-link to CDADD 'Dynamics of Population Wealth characteristic, Vacuum Hose effect on Population/Wealth'
Pg 163ff 'How Bitcoin will change the World'
Bitcoin cannot possibly reach the extreme tail-end of Population, which is increasing (at an increasing rate?), and any attempt to do so through technology such as mobiles is self-defeating as any public use of a mobile to access individual accounts is immediately hackable by the holder of the mobile, and hard-resources are far too scarce to provide mobiles to all.
And soft-resources (assuming hard-resources demands can be met)??????
BBC News churned out this garbage report: A simple online system that could end plastic pollution
( http://www.bbc.com/future/story/20190613-a-simple-online-system-that-could-end-plastic-pollution )
This report suggests that by utilising crypto-currencies that poor people can earn income from waste collection and hence plastic pollution can be eliminated. The reporter, Justin Calderon, and BBC News staff fail to understand that waste collection has no impact on the supply of plastic production, or that the 'peanuts' that are paid out to poor people have zero impact on reducing population tail-end expansion, as the payouts are based upon destructive, not constructive, Socio-Economics; and if it did prove temporarily successful it would be a diminishing 'supply' of waste collection hence would not be sustainable.
No, Frisby's arguments, like much of BBC (& other media) reportings, are pie-in-sky micro arguments wrongly amplified.
Pg 177ff (Ch9) – Billion-Dollar Hedge Fund Manager and a Super-Smart Mathematician Forecast the Future
Would you pay attention, give credit to a stewardess regarding the technicalities of flying a Jumbo jet? Why then pay attention, give credit to a fund manager or a mathematician regarding Socio-Economy Engineering.
If you want to read garbage then there is plenty at the Nobel Prize (Economics) website – the majority of prize winners being mathematicians with ZERO Science experience, let alone Science qualifications & training (Mathematics is NOT Science)
Fund Managers (Hedge or otherwise) manage micro entities and respond NOT to what Markets should do, but what they do do. And what they should do (in present unstable systems) is not necessarily, invariably is not, in the best interest of Socio-Economies. Which is why 'Open Free Economies' without PROTECTIONS (Note: NOT Protectionism) are massively destructive – witness the mass disparities through to numerous starvation genocides, increasing at an increasing rate.
Pg 195 (Ch 10) – Should You Buy In?
This question 'to buy in' is a purely personal one:
- if one has no experience of trading it is likely to be a pure gamble with high probability of failure as crypto-currencies are highly volatile, non-transparent, unregulated with little if any legal protection – and with numerous exchanges having collapsed (stolen accounts)
- if one is experienced in trading then it presents as another commodity with its associated risks – the question is then determined by the particular investor's own adversity to risk.
BUT, should one accept crypto-currency as a payment for goods or service? - this is an ENTIRELY DIFFERENT question to 'buy in' – a pre-condition that it readily trades for hard-currency would make it acceptable – but, again, such decisions are in a micro environment
Crypto-currencies are Economic Weapons of Mass Destruction – silent, creeping EWMDs
One only needs recognise the massive global socio-economic destructions caused by Donald Gordon's masterminding of pensions/investments (c1963, Liberty Life, South Africa) & globalised over 5 decades with assistance from Mervyn King (King of Corporate Governance), International Auditors (PWC, KPMG, GT, Deloitte, E&Y), resulting in super-saturation of global Money Base&Supply – unregulated, non-transparent crypto-currencies simply adds to the problems, seemingly assisting the under-privileged but only to limited numbers for limited periods before being vacuumed out.
[Regulated WMDs are extremely dangerous (what then of unregulated EWMDs?????)
Watch the final episode of Chernobyl (2019) TV series, from around 30 minutes into the episode, where Valery Lagasov (played by Jared Harris) explains the sequence of events that caused the Chernobyl explosion. Despite extensive Science/Engineering understandings of Nuclear power disasters still occur. But man's understandings of Nuclear power is very much restricted because there is still refusal to acknowledge & accept that Opticks (with a 'k')(wrongly attributed to Newton) are wrong, hence Michelson-Morley, Einstein, Hubble, Hawking, CERN etc., etc., are also wrong. We will not be able to progress understandings of Nuclear power nor of the Solar system or Universe unless we properly understand Optics (no 'k')
Defective 'science' abounds – watch also 'Light Falls' – in which Columbia professor Brian Greene pumps out defective science regarding Einstein, Relativity, Eddington etc. - Greene has also been kept regularly informed that Opticks are wrong – but Greene, like Hawing, Cox, Attenborough, Dawkins, du Sautoy, Al Khalili etc. are happy to promote defective 'science' because they are making money from it. The consequences of which are that Socio-Economics are riddled with grossly defective theories – and from which increasingly complex EWMDs can readily be manufactured to create global mushrooms of fall-out – fall-out that is realised, in the extremes, as mass disparitisations, numerous starvation-genocides – and, to lesser extent, realised as inabilities for today's youth to afford their own homes – all because massively catastrophic government policies are based upon grossly defective 'science', because governments refuse to correctly engage CDADD's R&D & Socio-Economy Engineering.
The World is in meltdown from the fall-out of EWMDs – and the Conservative Party & UK are in meltdown over Brexit – because Government/Parliament are not recognising that Brexit is a consequence, a symptom, of EWMD fall-out; of which crypto-currency is just one of many real threats.
The soon to be elected leader of the Conservative Party, hence new PM, will not solve the underlying Socio-Economic problems unless&until Merit is correctly Recognised & Rewarded/Funded – the new soon-to-be-elected PM may be the last ever Conservative PM if Physics Engineering & Socio-Economy Engineering are not correctly engaged]
- Skynews announced that Facebook is to launch their Libra crypto-currency (EWMD) – this was shortly followed by statement from Democratic Rep. Maxine Waters, chair of the House Financial Services Committee: who requested that Facebook pause its development of Libra, an upcoming cryptocurrency that the company plans to release in 2020.
“Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a cryptocurrency until Congress and regulators have the opportunity to examine these issues and take action,” (quote as reported by CNBC)
Summary:
The glut of information (by Frisby & on web) on crypto-currencies is essentially Mis&Dis-Information that is massively destructive to Socio-Economies, and from a person unqualified in such fields . Not by any stretch of the imagination can a micro-system (as are crypto-currencies) be amplified to MACRO-level solutions.
Supporters of crypto-currencies are invariably cypherpunks, speculators & desperates – none of whom have any Socio-Economy Engineering experience, nor of real-world Engineering (Software Development is in virtual-space, it is NOT Engineering)
Crypto-currencies can only aid in expanding tail-end population (with increasing angers & violence) –> increasing Global population.
Crypto-currencies are a CONSEQUENCE of Government/Parliament criminal dereliction/negligence.
In truth, crypto-currencies are Economic Weapons of Mass Destruction – silent, creeping EWMDs
REMEMBER: if you cannot recognise a simple TANGIBLE reality that rainbow colours split out to roy & biv colours (follow FAST-TRACK at www.cdadd.com; hence Einstein, Hubble, Hawking, CERN, etc., etc. are wrong) then you will not understand the INTANGIBLE, hence far more complex, nature of crypto-currency EWMDs
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As always, constructive engagement is welcomed.
Sincerely
Chris Addington Pr.Eng.
Follow 'Fast-track' at www.cdadd.com - A quick observation that proves Opticks (with a 'k')(wrongly attributed to Newton) are wrong:- orient a prism to obtain 'rainbow' pattern, move prism to surface & observe 'rainbow' splits out to roy & vib patterns at apex points – thus prism does NOT split out white light, colours are NOT frequency related but arc-angle related – thus Einstein, Hubble, Higgs, CERN are wrong → e≠mc2 , etc., etc., …..
→ Understand how Optics (no 'k') and the Universe really functions ….. follow the fast-track at www.cdadd.com
- Opticks (wrongly attributed to Newton) are wrong → e≠mc2
- Refraction is NOT Refraction
- Perspective: singular proof that Einstein, Hubble, Hawking, Higgs, CERN etc. are wrong
- Quantum Theory contradicts Classical Physics because QT is wrong.
- etc., etc., etc. …....
- John Nash (Nobel Economics 1994) - models are defective -> massive socio-economic destruction
- Fermat's Last Theorem: Andrew Wiles' 'proof' is NOT a PROOF; cf Proof that 1=0; also Wiles' 'proof' too complex to PROVE a PROOF; CDADD has developed a classical PROOF.
- etc., etc., etc., ….