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> That is profoundly faulty reasoning. For a lot of people, a drop in bitcoin is just a signal to buy because they have an irrational belief that it can never r

> That is profoundly faulty reasoning. For a lot of people, a drop in bitcoin is just a signal to buy because they have an irrational belief that it can never really go down permanently (which, to anyone who remembers 2007, should sound familiar). Its not faulty at all. When a ponzi stops paying out it crashes. Bitcoin had long periods of not paying out. The never ending demand for it signals the opposite of a ponzi: all assets with demand have a floor where people stary buying again. I also dont see bitcoin's value as most people. I sold most at 60, figure that out. Who knows where this ends..

zzalpha 9y ago
Which is why this isn't as simple as a direct Ponzi scheme where actual cash payments are passed around (and why I never actually called it one). It's more like a MLM where sellers are buying their own product for resale with the expectation of future returns. This breaks the normal dynamic of a Ponzi scheme since there's latent inventory lying around that can be bought, sold, or held until another sucker comes along. And that delays the crash. Of course, the big difference is a normal MLM at least offers a product with some nominal base value, whereas the base value of Bitcoin is precisely zero.