A ponzi by any other name

El Salvador Bitcoin


In the news recently was that El Salvador purchased 200 Bitcoins. This brings their total to 550 Bitcoins. While the value is constantly fluctuating, at it's recent high of $65,000.00, that would make the government an owner of $35 Billion dollars of Bitcoin.

We are living in absurd times. Certainly as absurd as when tulip bulbs were money, or books, or bags of pepper. Of course, with Bitcoins there is nothing tangible attached to their value. You might as well add two zeroes to a one dollar bill and call it one hundred. It would eliminate poverty instantly. Save time and add four or five zeroes. Instant millionaire.

One of the more interesting explanation/defense/excuse for moving the national currency to Bitcoin was to serve the unbanked. Don't laugh! Of course the unbanked won't be buying a $65,000.00 Bitcoin anytime soon. The government has partnered with a tech firm for an app that allow people to trade bits o' Bitcoin. If I understand it correctly, the government is giving people the equivelent of $30 in the app to promote it's use. You can pay your taxes in Bitcoin, or like, Venmo, anybody that has the app.

A number of years ago, I attended a conference where much of the discussion was about how to service the unbanked. I was unfamiliar and suspicious of the banks' claims, but time has proven them correct and honest. There is a great need for banking for the unbanked, but the poor were managing their accounts with a flip-phone, not a smartphone. And, of course, their money did not change value constantly like Bitcoin does.

So why are the unbanked and the rest of the nation being encourgaed to adopt Bitcoin? There is only one possible explanation. Every ponzi scheme needs a constant influx of new pigeons. Undoubtedly, many in government and their cronies are already holding a large share of Bitcoins. By making Bitcoin a national currency, and with the hope that other nations will likewise purchase and adapt its finances to Bitcoin, their holdings will grow expotentially as the value of this worthless chit increases. I'm just going to add a zero to a one dollar bill and see if the local store will take it. Afterall, both are just as real.