In a new video the popular cryptocurrency YouTuber, Mr_Kristof, he talks about paper Bitcoin and that there is potentially 42 million of the asset in circulation.
On 17th December 2017, the CME Group launches its futures platform. On this same day, this is when Bitcoin was nearing $20,000. Remember, this is during a time when mainstream media outlets were covering the price of Bitcoin on a daily basis as it was well known at this point that you could make millions off the leading cryptocurrency.
Mr_Kristof makes a comparison to the gold market saying that gold is something that you can’t use on a day to day basis simply because it is heavy, clumsy and just an asset that places probably won’t accept, plus it’s a store of value which is just a way to make money for most people. With Bitcoin, however, it is relatively easy to complete transactions. Granted, there aren’t that many places out there that will accept Bitcoin at the moment but there are a few and they keep on growing. This is why paper Bitcoin makes sense since it isn’t heavily used by the masses but despite this argues that paper Bitcoin will still fail.
Continuing from this, Mr_Kristof argues that the paper Bitcoin is all revolved around the US dollar. Following on, he says that it isn’t possible for the crypto ecosystem to leverage itself but since the US Dollar has been backed by the government, it is in turmoil with around 24 trillion dollars in debt. In addition to this he makes a prediction in regards to the future of the US dollar, the YouTuber says that he believes that the currency will eventually collapse.
He goes on to make an argument that there is one of two reasons as to why Bitcoin will fail. To start he says that paper Bitcoin is unusable and cannot be tracked through the blockchain since it isn’t a ‘real’ Bitcoin. In addition, paper BItcoin is going to be transacted by other people who are getting physical traded Bitcoins with this he believes this is just one reason as to why paper Bitcoin will fail.
Secondly, he tracks back to the amount of debt that America has which is what the US dollar revolves around which leads to the paper Bitcoin being worthless.
To finish off, Mr_Kristof says that paper Bitcoin is “shady, it’s wrong, it’s, in my opinion, unethical and it’s a hustle.”
He even compares paper Bitcoin to the Ponzi scheme that was Bitconnect which gained a lot of traction due to the number of investors who were stooped out of their money as well as the event revolving around the cryptocurrency becoming a meme in internet culture.