BitClout is a scam, change my mind
ruky.me
ruky.me
What happened is that the platform became almost completely reliant on new customers joining to pay out the old. If you’re thinking, well that sounds a lot like a Ponzi scheme, you’d be right.
When COVID hit snd football games were cancelled, ‘investors’ withdrew their money to spend on other things and the stream of new customers died out completely. The platform collapsed snd nearly everyone lost their money.
Won’t be going near it, and the fact that Clubhouse has been so quickly completely overrun by MLM hucksters who use it to pump each other’s products is a big strike against that platform for me too.
You'll need to argue that busting the scam actually reduces their influence. Anna Sorokin got a 300k deal with Netflix right after getting out of prison. If she writes a book I'm sure there are some people that would be willing to buy it. Has the scam really destroyed her influence?
The OP also does not go on to make a case for WHY they think this is a scam. A sales person not answering your question does not make the company scammy.
Also going back to Theranos, even though people thought it was a scam, it took several months/years to prove it conclusively that it was truly a scam
Maybe you should have written more about that..
They can also removed be removed on creator demand.
It’s eye rolling deceitful marketing.
Author claims “I don’t know how these things work.” Then proceeds to deride them using a straw man “expert” who he paraphrases, can’t even be bothered to quote.
I’ve read more insightful commentary on truck stop bathroom walls.
Now, will somebody tell me what bitclout is, and can I have some?
Author is kind of right if you go by what their site says.
So definitely there has to be some other factor apart from GDP which gives value to a currency.
What will happen to US and world economic trade when this is reversed?
- USA, probably
But in a deeper sense, what back the currency is that it's the only currency accepted by the USA government to pay taxes and other liabilities (1).
If tomorrow, people decided they not want to use Dollars, they would still have to get Dollars in order to pay their taxes, that would grant demand for Dollars.
(1) - https://neweconomicperspectives.org/2014/05/taxes-mmt-approa...
Otherwise, things have "value" because we can do things with them. Food and drink are probably the most immediate ones - we need them to survive.
Classic currencies have quite a lot of use too. They are universally-accepted, protected by governments (inflation concerns notwithstanding), tamper-protected, there are safe and easy ways to store and exchange it (bank accounts / transfers, cash, cheques), it is protected by the full might of the law against crime. In some countries more than in others of course. So it's a good universal medium of exchange, even if ultimately it is a social convention.
Crypto in general has some, but not all of the above properties. I now totally get that when you really can't trust your crony government to provide such a currency, they are a good alternative.
But ultimately all "value" is merely what someone will pay (exchange) for the thing.
1. The Federal Reserve holds assets (mainly stocks and bonds) whose value exceeds the value of all the dollars that have been issued.
2. If they anticipate that inflation will be greater than their 2% target then they sell these assets in order to push the value of the dollar back up.
So even though the dollar isn't backed 1-to-1, it's value also isn't an arbitrary social decision like some people seem to think. It's being supported by assets with real value.
Of course many of the bonds owned by the Fed are US government bonds, and so the dollars value is partially dependent on the ability of the US's government to tax wealth from its citizens.
What does "real" value means?
This is not true at all. The Fed does not hold equity (stock) and the Fed is also not the only entity that can create money. Lots of money is created by regular banks lending out deposits. This is called fractional reserve banking and until recently was the primary mechanism for money creation.
Thanks for pointing out this error. I thought the Fed had been buying stock as part of their recent expansion, but checking their balance sheet https://www.federalreserve.gov/releases/h41/current/h41.htm I see that you're right.
> Lots of money is created by regular banks lending out deposits
I was only counting Federal Reserve accounts and printed money as dollars. Dollar-denominated accounts at regular banks have value because of the assets held by those banks.
Correct, this was my mistake.
> And dollar denominated bonds as backing for the dollar are basically a short-circuit.
The difference between dollars and dollar-denominated bonds is the time delay. Suppose you issue 100 kineyCoins and give them to me, and we have a contract that I have to give them back to you in a year. Then those coins will have value to third parties, because they know that if they hold them then as the deadline approaches I will have to buy those kineyCoins back in exchange for whatever those third parties value.
No. The GDP increases every time a USD transaction happens (e.g. you buy a cup of coffee with USD). And an American buying a cup of coffee definitely does not increase the value of the USD.