The scholar of Rhodes and the liberal media commentator said in a segment that was broadcast on Thursday, March 6 that cryptocurrency is a scam. He also criticized the White House for “playing this game.”
The MSNBC presenter, Rachel Maddow, calls Trump’s Bitcoin Strategic Reserve a ‘deeply outdated simple scam.’
She draws a surprising comparison between cryptographic babies and hat, saying: “Cryptos operate with the same idea. They have no inherent value at all, but people speculate, waiting … pic.twitter.com/knjrwrndd
– Office Area (@coinbureau) March 8, 2025
President Donald Trump signed an earlier executive order that day establishing a National Reserve of Digital Assets.
The Cryptographic Tsar of the White House, David Sacks, said: “The United States will not sell any bitcoin deposited in the reserve. It will remain as a value reserve. The reserve is like a Fort Knox digital for cryptocurrency, often called ‘digital gold’.
“This cryptography is worth looking a little,” Maddow said in his program. “Just because it is a simple and deeply old scam. At this point, which points directly to the White House. “
This is what Maddow said about Bitcoin and what was wrong.
1. Unlike hats, the price of Bitcoin rises
“Aviously, the wide blows of cryptography trade are not complicated,” said Maddow. “It’s like when there was Beanie Baby’s fashion in the late 1990s.”
“It was a commercial hat bubble,” he explained. “Apart from an emotional value if you had one when you were a child, hat babies didn’t have much inherent value.”
“But it was worth buying a lot of them because it was speculated on the premise that, as collectibles, maybe your Beanie Babies collection could be worth a lot of money.”
However, there is a key difference between Bitcoin and Beanie Babies. While Beanie Babies debuted in 1993 at the World toy Fair in New York City, this toy fashion reached his Height six years later in 1999.
After DOT com in 2000, the frenzy of the price of the auction for babies never recovered at those levels again.
To have a realistic idea of ​​the value of the accessory market of stuffed toys, one only needs to study a local second -hand store in your city. But unlike Beanie Babies, the price of Bitcoin has been rising since it was launched on January 3, 2009.
That is 16 years of growth in the daily exchange rate for the dollar that eclipses the comparable ROIs of the highest technological actions throughout the history of the stock market.
During their newspaper bears markets, which so far have occurred in a fairly predictable cycle of 4 years, critics have repeatedly called Bitcoin a fashion and declared dead.
But every time the skeptics have gone badly when the price establishes new high records of all time in four years. When it comes to historical records, there is no sensible comparison between Beanie Babies and Bitcoin.
While the Collectible Toy reached their maximum point in 1999 and never recovered, Bitcoin created 84,000 new cryptographic millionaires in 2024, according to a report on CNBC.
2. Beanie Babies markets are not liquid or transparent
“The cryptocurrencies operate with the same idea,” Maddow continued in his segment to say.
“They have no inherent value at all. The only value they have is that if you have any reason to believe that someone else could want to buy it in the future. “
“What that means in very practical terms is that convincing other people that their cryptography is popular and in demand, that is key to earning money.”
But it is not true that cryptocurrencies work with the same idea as the toy and fashionable hobbies or that assets such as Bitcoin do not have an inherent value.
Hattish babies are not a financial product and have no qualities that make them adequate for use as one. It is not as easy as sending an email to exchange a lot of toys stuffed animals, but it is almost so easy to exchange bitcoin.
It is also not possible to monitor how many hat babies are in the market and publish updated daily commercial data on each.
Not only is it feasible with Bitcoin and other crypts such as those in the National Reserve, computer developers designed them in that way.
That is part of the value they provide that allows you to use these digital products such as financial products and investment vehicles: liquidity and transparency.
3. Hattish babies are not durable and fungible as a crypto
Meanwhile, hat babies are not durable and fungible such as cryptocurrencies. Who wants the teddy toy of another person in which they have been flying and rubbing the cheeto fat?
These inventories have market values ​​that are highly sensitive to wear, and the products are very vulnerable to deteriorating in a condition with a resale value marked well below retail trade.
Even when they are kept in mint conditions, values ​​subsequent to the market for toys are more like the used car market. After being expelled from the lot, they depreciate immediately and abruptly.
BTC cryptographic assets inventors, on the other hand, paid careful attention to design their economy or “tokenomic” to optimize them for the resale value with time and in the predictable future.
Cryptocurrencies such as the two mentioned above have supply limits that introduce shortage economy. Nor are they subject to deterioration of the physical condition.
In fact, any Bitcoin unit is always equal to any other equivalent unit in the market value. This is called fungibility, and it is a system requirement for an asset to work as a currency.
4. Hattish babies are not scarce like Bitcoin
“The idea of ​​promoting cryptocurrency is that people should buy soon, right?” Maddow continued in his program.
“Enter the ground floor while it is cheap because it is about to climb value because there is a lot of interest in it. If you now enter the ground floor, you will make a package. It is all the hype. It’s all the scam. “
While it is true that participants in cryptography markets can participate in non -authentic and exaggerated marketing tactics, that does not make underlying assets a scam.
Nor does it mean that there are no smarter reasons why financial geniuses such as Larry Fink of Blackrock, Shark Tankant Kevin O’LearyOr Michael Saylor of Strategy believes that investing in Bitcoin and the block chain is not only not a scam, but the next phase of Internet development and human civilization.
5. Bitcoin orders real demand, not just exaggeration
After making all these mistakes in their transmission, Maddow finally forsaken his own case with his final thoughts about this segment.
“Imagine that Trump had just announced that the United States government was going to buy tons of Beanie babies,” said MSNBC host. “We are going to establish a federal government reserve of billions of hat babies.”
“What do you think would happen with the value of the babies hat? It turns out that there is a great guaranteed buyer for these things. They are buying billions of them. “
The answer to your question is: its value would probably increase as most analysts expect from Bitcoin. Since there is a great guaranteed buyer and that buyer is the United States government.
It is not bad for a scam.
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