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Not really, but the crypto currency community looks like a pyramid scheme. First users gets most of the coins.
by olavgg 9y ago
Not really, but the crypto currency community looks like a pyramid scheme. First users gets most of the coins.
- isubkhankulov 9y agoits actually closer to a multi level marketing scheme, so only slightly less shady. but hey bitcoin works, the others? like gnosis, not so much
- krabpaaltje 9y agoFirst users also have the risk of their investment becoming worthless.
- tveita 9y agoAll the users risk their 'investment' becoming worthless, that is not a risk exclusive to first users.
- oculusthrift 9y agoyeah but it obviously takes less risk to invest in Apple in 2015 than 1978
- product50 9y agoDo you have any idea what is going on here or are you ignoring away in bliss? This is as much a pyramid scheme as VC industry is in that early investors make disproportionate gains (and losses). Finding the right tokens to invest in is the challenge.
- khazhoux 9y agoOnly disproportionate gains, not losses. When a startup goes bust, every investor can only lose what they put in. No one loses multiples on their investment.
- product50 9y agoIt is generally a portfolio investment approach in which you would invest in multiple coins in the hopes one of them gains 100x and you lose your money in the rest. If you think it is so easy and there are only gains to be had, why don't you go ahead and make a few investments and come back with results?
- jcranmer 9y ago> No one loses multiples on their investment. Leverage is a multiplier in both directions. People do borrow money to invest in bubbles which is what can make the eventual pop so economically devastating.
- Twisell 9y agoWell I will gladly change my mind anytime someone can provide a convincing argument against the "bitcoin pyramid scheme" that is nor an ad-hominem attack, neither a cryptic response like "value come from scarcity induced by the growing complexity of the arbitrary mathematical problem solving that require big amount of current tech silicium mostly running in a non-democratic country who don't care about power efficiency...(goes on with technical gibberish)" My theory is that if MasterCard roll-out a "masterbyte" crypto-currency that can automagically convert to real cash usable in all MasterCard enabled retails, bitcoin will loose all value almost overnight. Prove me wrong using strong arguments and I'll change my mind. PS: needless to say, downvoting me don't count as an argument. It just keep me thinking that you are in lack of a better one.
- hl5 9y agoWhere are the victims?
- RandomInteger4 9y agoYour statement indicates that you don't know what a pyramid scheme is, or that you do and you're expanding its definition to generalize its negative connotation to something else that doesn't fall under the proper definition of a pyramid scheme. A company using credit card technology in combination with bitcoin and other cryptocurrencies is simply leveraging existing technology interfaces for companies that want to accept cryptocurrency without said companies having to deal with alternative payment systems. The payment system handles everything related to the cryptocurrency and the payee simply sees the USD (or other fiat currency) value in their accounts.
- Twisell 9y agoI will stick to the pretty basic definition that a pyramid scheme cannot sustain itself when less foreign currency enter the system. That is because the system is blatantly unable to produce value and only produce virtual currency from foreign currency. I stil don't see any argument, just as-hominem as usual when defending bitcoin: "Pheeww you know nothing...".
- 9y ago