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Math guy explains bitcoin: https://youtu.be/bBC-nXj3Ng4 https://youtu.be/bBC-nXj3Ng4

by jcslzr 9y ago

nosuchthing 9y ago
Math guy neglected to mention the ponzi scheme aspect of these cryptocoins, where the early adopters amass large quantities of coins for no reason other then running the software for a short duration and significantly lower cost of processing cycles, all by design. Rubes trading excessive amounts of fiat cash for digital tokens are baffling, and a testament to how deranged economics can get simply by assuming an asset is rare or desirable.
- aml183 9y ago
  Cryptocurrency is not a ponzi scheme. A ponzi scheme has an expectation that you'll be paid dividends or returns by the company you are investing in. Essentially, old investors are being paid by new investors. There is only one investment period for these tokens (eg. ICO).
- vinchuco 9y ago
  It's not a Ponzi scheme. It may not be "fair" in the sense you put it, but it's not that.
- Jabanga 9y ago
  There's nothing ponzi schemish about that. The cost of mining is proportional to competition for new coins. Not much different than any other resource extraction.
  - nosuchthing 9y ago
    The irony here is the "resource" being created by processing cycles is not rare. This is evident by the 800+ variations of cryptocoins. Often times, designers have chosen to 'premine' large sums of coins which are sold off directly for a set price, which then is arbitrary raised because people falsely believe these things are rare. It's a ponzi scheme in a loose sense, as early adopters produced and acquired large sums of arbitrary numbers written to a database and by design, as time passes later users running the same software on an equally powerful machine are "rewarded" with smaller numbers written to the database. The entire service, and minting/production of database token/coins are reproducible simply by forking or running a new genesis block with the same protocol. Denying the inherent ponzi scheme payouts designed into the early cryptocoin protocols is neglect or delusional at best, and at worst, purely deceptive.
    - Jabanga 9y ago
      Of course the resources are rare. Each cryptocoin is unique to the network that backs it. The network is more than the open source software of the clients. It's also the blockchain itself, which is made more difficult to reverse through proof of work, and the userbase that uses the network/blockchain to transact value. Something being cheap at first, and then becoming more expensive as demand for it increases, doesn't make it a ponzi scheme. By such a definition, any stock that saw its value increase would be a ponzi scheme. The assertion of it being a ponzi scheme is pure ignorance at best, and at worse, intentional deception and defamation.
      - nosuchthing 9y ago
        For historical context: June 12, 2010, 08:14:44 PM This is an open offer by the way.. I will trade 10,000 BTC for 2 of these pizzas any time as long as I have the funds (I usually have plenty). If anyone is interested please let me know. The exchange is favorable for anyone who does it because the 2 pizzas are only about 25 dollars total, maybe 30 if you give the guy a nice tip. If you get me the upgraded extra large ones or something, I can throw in some more bitcoins, just let me know and we'll work something out. My 1 year old daughter really enjoys pizza too! She just smears it all over her face if you give her a whole slice, but she does eventually manage to get most of it in her mouth (minus a few loose toppings of course). If you pay actual money for bitcoins to people who've generated thousands of coins for running a piece of software circa 2010, then you've really earned your "investment" into the pyramid of blockchain hype ;) Source: https://bitcointalk.org/index.php?topic=137.msg1195#msg1195 https://bitcointalk.org/index.php?topic=137.msg1195#msg1195
        Jabanga 9y ago
        It's called appreciation. It has happened to numerous assets. The definition of good investing is buying low and selling high. You're implying that something that produces investment returns beyond a amount is a ponzi scheme, which is absurd, and transparently so. You and I both know cryptocurrency doesn't meet the definition of a ponzi scheme. The only question is what's motivating you to make these false representations.
oska 9y ago
Don't know why this was downvoted; it's a brilliant video.

Math guy explains bitcoin: https://youtu.be/bBC-nXj3Ng4 https://youtu.be/bBC-nXj3Ng4

by jcslzr 9y ago

Math guy explains bitcoin: https://youtu.be/bBC-nXj3Ng4 https://youtu.be/bBC-nXj3Ng4

Math guy neglected to mention the ponzi scheme aspect of these cryptocoins, where the early adopters amass large quantities of coins for no reason other then running the software for a short duration and significantly lower cost of processing cycles, all by design. Rubes trading excessive amounts of fiat cash for digital tokens are baffling, and a testament to how deranged economics can get simply by assuming an asset is rare or desirable.

aml183 9y ago
Cryptocurrency is not a ponzi scheme. A ponzi scheme has an expectation that you'll be paid dividends or returns by the company you are investing in. Essentially, old investors are being paid by new investors. There is only one investment period for these tokens (eg. ICO).
vinchuco 9y ago
It's not a Ponzi scheme. It may not be "fair" in the sense you put it, but it's not that.
Jabanga 9y ago
There's nothing ponzi schemish about that. The cost of mining is proportional to competition for new coins. Not much different than any other resource extraction.
- nosuchthing 9y ago
  The irony here is the "resource" being created by processing cycles is not rare. This is evident by the 800+ variations of cryptocoins. Often times, designers have chosen to 'premine' large sums of coins which are sold off directly for a set price, which then is arbitrary raised because people falsely believe these things are rare. It's a ponzi scheme in a loose sense, as early adopters produced and acquired large sums of arbitrary numbers written to a database and by design, as time passes later users running the same software on an equally powerful machine are "rewarded" with smaller numbers written to the database. The entire service, and minting/production of database token/coins are reproducible simply by forking or running a new genesis block with the same protocol. Denying the inherent ponzi scheme payouts designed into the early cryptocoin protocols is neglect or delusional at best, and at worst, purely deceptive.
  - Jabanga 9y ago
    Of course the resources are rare. Each cryptocoin is unique to the network that backs it. The network is more than the open source software of the clients. It's also the blockchain itself, which is made more difficult to reverse through proof of work, and the userbase that uses the network/blockchain to transact value. Something being cheap at first, and then becoming more expensive as demand for it increases, doesn't make it a ponzi scheme. By such a definition, any stock that saw its value increase would be a ponzi scheme. The assertion of it being a ponzi scheme is pure ignorance at best, and at worse, intentional deception and defamation.
    - nosuchthing 9y ago
      For historical context: June 12, 2010, 08:14:44 PM This is an open offer by the way.. I will trade 10,000 BTC for 2 of these pizzas any time as long as I have the funds (I usually have plenty). If anyone is interested please let me know. The exchange is favorable for anyone who does it because the 2 pizzas are only about 25 dollars total, maybe 30 if you give the guy a nice tip. If you get me the upgraded extra large ones or something, I can throw in some more bitcoins, just let me know and we'll work something out. My 1 year old daughter really enjoys pizza too! She just smears it all over her face if you give her a whole slice, but she does eventually manage to get most of it in her mouth (minus a few loose toppings of course). If you pay actual money for bitcoins to people who've generated thousands of coins for running a piece of software circa 2010, then you've really earned your "investment" into the pyramid of blockchain hype ;) Source: https://bitcointalk.org/index.php?topic=137.msg1195#msg1195 https://bitcointalk.org/index.php?topic=137.msg1195#msg1195
      - Jabanga 9y ago
        It's called appreciation. It has happened to numerous assets. The definition of good investing is buying low and selling high. You're implying that something that produces investment returns beyond a amount is a ponzi scheme, which is absurd, and transparently so. You and I both know cryptocurrency doesn't meet the definition of a ponzi scheme. The only question is what's motivating you to make these false representations.

oska 9y ago

Don't know why this was downvoted; it's a brilliant video.