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They are as much a Ponzi scheme as gold (which has almost no practical use) and ugly paintings that cost millions http://www.therichest.com/luxury/most-expensiv

They are as much a Ponzi scheme as gold (which has almost no practical use) and ugly paintings that cost millions http://www.therichest.com/luxury/most-expensive/10-ugly-pieces-of-art-you-wont-believe-sold-for-millions/ http://www.therichest.com/luxury/most-expensive/10-ugly-piec... If expensive ugly paintings are not a Ponzi scheme, then cryptocurrencies are not a Ponzi scheme.

BoiledCabbage 9y ago
Gold isn't a "Ponzi scheme". Even if you believe that investing in gold makes no sense, and it's a useless metal with no practical purposes, and it's a bubble waiting to burst and so on, that still doesn't make it a Ponzi scheme. Even if all of those beliefs above were true, it still wouldn't be a Ponzi scheme. As someone else posted in here, Ponzi Scheme has a fairly specific definition which "Gold" doesn't meet.
- wc- 9y ago
  [Cryptocurrency] isn't a "Ponzi scheme". Even if you believe that investing in [Cryptocurrency] makes no sense, and it's a useless [tech] with no practical purposes, and it's a bubble waiting to burst and so on, that still doesn't make it a Ponzi scheme. Even if all of those beliefs above were true, it still wouldn't be a Ponzi scheme. As someone else posted in here, Ponzi Scheme has a fairly specific definition which "[Cryptocurrency]" doesn't meet.
- libertine 9y ago
  Gold has a lot of practical uses.
ShabbosGoy 9y ago
Ether is more like oil - it is a fuel source used to power smart contracts, token sales, and autonomous organizations.
- ailideex 9y ago
  This analogy is not accurate.
  - joshschreuder 9y ago
    What analogy would you use?
    - DennisP 9y ago
      It's the money you spend at the gas station to buy your fuel. The fuel is burned, the money is not.
  - nathan_f77 9y ago
    "gas" is actually a common term used in the Ethereum community. [1] [2] [1] https://ethereum.stackexchange.com/questions/3/what-is-meant-by-the-term-gas https://ethereum.stackexchange.com/questions/3/what-is-meant... [2] https://www.ethereum.org/token https://www.ethereum.org/token
    - DennisP 9y ago
      Yes but ETH and gas are not the same thing. You use ETH to buy your gas. The gas is burned up in use. ETH is paid to the miners, who can use it to pay their expenses.
- peculiar 9y ago
  Ether is not like oil at all. You only somewhat need ETH. Nothing stops you from using ETC. Or starting your own fork (either private or public). Your contracts will work there just fine. On the other hand, it is not likely you can deploy some magic oil machine in your closet with almost 0 investments and start producing $5c / barrel oil.
- calafrax 9y ago
  Yeah, just like oil, except completely useless.

BoiledCabbage 9y ago

Gold isn't a "Ponzi scheme". Even if you believe that investing in gold makes no sense, and it's a useless metal with no practical purposes, and it's a bubble waiting to burst and so on, that still doesn't make it a Ponzi scheme. Even if all of those beliefs above were true, it still wouldn't be a Ponzi scheme. As someone else posted in here, Ponzi Scheme has a fairly specific definition which "Gold" doesn't meet.

wc- 9y ago
[Cryptocurrency] isn't a "Ponzi scheme". Even if you believe that investing in [Cryptocurrency] makes no sense, and it's a useless [tech] with no practical purposes, and it's a bubble waiting to burst and so on, that still doesn't make it a Ponzi scheme. Even if all of those beliefs above were true, it still wouldn't be a Ponzi scheme. As someone else posted in here, Ponzi Scheme has a fairly specific definition which "[Cryptocurrency]" doesn't meet.
libertine 9y ago
Gold has a lot of practical uses.

ShabbosGoy 9y ago

Ether is more like oil - it is a fuel source used to power smart contracts, token sales, and autonomous organizations.

ailideex 9y ago
This analogy is not accurate.
- joshschreuder 9y ago
  What analogy would you use?
  - DennisP 9y ago
    It's the money you spend at the gas station to buy your fuel. The fuel is burned, the money is not.
- nathan_f77 9y ago
  "gas" is actually a common term used in the Ethereum community. [1] [2] [1] https://ethereum.stackexchange.com/questions/3/what-is-meant-by-the-term-gas https://ethereum.stackexchange.com/questions/3/what-is-meant... [2] https://www.ethereum.org/token https://www.ethereum.org/token
  - DennisP 9y ago
    Yes but ETH and gas are not the same thing. You use ETH to buy your gas. The gas is burned up in use. ETH is paid to the miners, who can use it to pay their expenses.
peculiar 9y ago
Ether is not like oil at all. You only somewhat need ETH. Nothing stops you from using ETC. Or starting your own fork (either private or public). Your contracts will work there just fine. On the other hand, it is not likely you can deploy some magic oil machine in your closet with almost 0 investments and start producing $5c / barrel oil.
calafrax 9y ago
Yeah, just like oil, except completely useless.