To the Editor:
As the city mulls a moratorium on bitcoin, so should government and the financial community.
If a person came to you and said, “Here is an equation, solve it with your gaming computer and I will give you a coin.”
You can’t see, touch or feel this coin, but you can store it in a virtual wallet and it’s worth money. Plus if you decide to solve the next equation, that’s just a little more difficult, you get another coin.
Eventually you can convert these coins or trade them, but not at a bank. They are tendered by an almost anonymous institution with the use of your wallet.
Oh — one little point.
If you lose them or they are stolen from your wallet, they are not insured.
Don’t worry though, just solve more equations and tell your friends so we can all get rich.
Want more, faster, mine with a bunch of computers and we’ll call it a farm.
Hell of a sales pitch, isn’t it?
The reality is that there is no commodity, no currency, no bank or government that backs this intangible coin!
Remember the pet rock?
Well, at least you could hold it! Bitcoin is pure gambling on steroids and a waste of resources. This financial scheme can topple investors, banks and governments in seconds leaving total ruin.
Bitcoin is not stable! It has huge swings in value, which is why futures markets considered trading it. Like a drug pusher, it gets people hooked and then drives up the price. The more you mine the tougher it gets.
Bitcoin farms don’t create jobs — just more computers. Instead of burning up 16 percent of Plattsburgh’s electric power on companies that could leave the city holding the bag, try attracting businesses that produce real products and services.