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Since there is a limited supply of Bitcoin, people are buying Bitcoin now with the hope that there will be more demand for the limited supply in the future. The
by Osiris 6y ago
Since there is a limited supply of Bitcoin, people are buying Bitcoin now with the hope that there will be more demand for the limited supply in the future. There is a hope that Bitcoin becomes "useful", thus driving demand. Since supply is fixed, demand causes an increase in value.
So, it's a speculative "investment". I suppose whether it's an "investment" depends on your definition of "investment".
- dandanua 6y agoIt's useful and it has demand for its use. But most people buy it only to make a fortune. This makes it a Ponzi scheme. No contradiction here.
- JxLS-cpgbe0 6y agoA Ponzi Scheme relies on a central authority, BTC has none. I think you just mean "scheme?"
- dandanua 6y agoThere is Satoshi's wallet in the root, no need for authority as we can see.
- JxLS-cpgbe0 6y agoYes, there is need for a central authority, Charles Ponzi for example. They actively and consciously channel the funds from new, defrauded investors, to that authority. BTC is not a Ponzi Scheme ; Satoshi is not steering the profits from a pump-and-dump. Passively profiting off new investors buying BTC does not make a Ponzi Scheme. Market manipulation is not a Ponzi Scheme. A Pyramid Scheme is not a Ponzi Scheme. "Ponzi Scheme" has a real definition.
- dandanua 6y agoAgree, I've used it in a more general sense. I mean it's just like a pyramid.
- JxLS-cpgbe0 6y agoIt's not a Pyramid Scheme either, there is no central authority. The benefits of a Pyramid scheme are specifically not investments, but instead explicitly payments for recruiting. Pyramid Scheme also has a real meaning.