John Crudele of the NY Post Calls Bitcoin a “Confidence Game”

Journalist:
Rick Mac Gillis @ManWithNoBrows
August 29, 2014

John Crudele has written a piece on the NY Post calling Bitcoin a “Confidence Game” while being insulting towards Bitcoin enthusiasts. His apparent lack of knowledge in the Bitcoin market has BitcoinTalk members calling him out on that. For those of you who do not know what a confidence game is, Dictionary.com defines a “Confidence Game” as “any swindle in which the swindler, after gaining the confidence of the victim, robs the victim by cheating at a gambling game, appropriating funds entrusted for investment, or the like.”

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John Crudele of the NY Post Calls Bitcoin a “Confidence Game”

In his article, John Crudele starts his article by outright calling Bitcoin a “worldwide scam” and calling Bitcoin investors “gullible,” “Bitcoin loons,” and “Bitloons” while referring to MIT professors as “adults” while the students working with their experiment, as “kids.” It’s not just MIT students and Bitcoin enthusiasts whom he was insulting towards, but people working for CNBC were referred to as “idiots.”

Aside from being derogatory towards anyone opposing his viewpoint, he ends his article with, “This part wasn’t in the survey, but I bet even phone scammers wouldn’t accept Bitcoin as payment.” As you may recall, Dell, NewEgg, Dish Network, and so many other reputable companies accept Bitcoin as payment that to say that Bitcoin is beneath “phone scammers” is to say that Dell and other major companies are also beneath “phone scammers.”

Trading in the Bitcoin market is at its worst, equivalent to gambling, and at its best it’s closer to stock trading, but as no one controls Bitcoin, his statement that, “probably one of the people who stand to gain by keeping this charade going — gave $500,000 to the MIT kids,” is entirely baseless. Bitcoin cannot directly be considered a confidence game as no one controls the money, save for the people who own it. The only way to make Bitcoin a “Confidence Game” is if the coin development team discontinued the project, but even then, someone could easily create their  a fork of the Bitcoin code in order to keep the project running smoothly.

Members of the BitcoinTalk forum discussing his article pointed out that one might consider fiat currency, gold, and silver as a confidence game as those stores of value could also stop being accepted by people for trade. “Beliathon” went so far as to state that, “Bitcoin is the only form of money with mathematically provable reason to have confidence in it. Every fiat currency is predicated on ‘it’s complicated; you wouldn’t understand. Just trust us.'”

Bitcoin is cryptographically secure, so it removes the need for trusting it as true money. People can counterfeit paper money, create fake diamonds (Cubic Zirconium), Gold plate bricks and pass them off as pure gold, or do the same with silver. Most people without the proper tools and knowledge would fall for those “confidence games,” but with Bitcoin, there is no way to produce a fake Bitcoin. John Crudele’s article is based entirely on either lack of knowledge or his spite towards Bitcoin, but surely not on factual evidence.

Featured image by Shutterstock.

Rick Mac Gillis @ManWithNoBrows

Rick Mac Gillis entered the world of Cryptocurrencies in late 2013. He is a controversial journalist committed to investigating and exposing the "dirty bits" of the community. With over a decade of experience in LAMP web development with a focus in custom cryptographic security methods and ethical hacking, Rick Mac Gillis understands the need for proper security standards in cryptocurrency.