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It's not a Ponzi scheme, it's a "pump and dump". The early adopters of Bitcoin have presumably amassed large quantities of Bitcoins, which means they have a ve
by michael_dorfman 15y ago
It's not a Ponzi scheme, it's a "pump and dump". The early adopters of Bitcoin have presumably amassed large quantities of Bitcoins, which means they have a vested interest in keeping the perceived value of Bitcoins high.
It's not a matter of a single malicious individual or organisation manipulating the price-- it's that each person holding Bitcoins has an interest in furthering the belief that they are actually worth something.
- awt 15y agoSo if the early adopters attempt to sell a large quantity of bitcoins, won't that move the market (down), severely limiting the amount of fiat currency they can get for their dump?
- sgornick 15y agoOr has an interest in furthering the increase in demand for bitcoins (and thus the value of them) by offering goods and services in exchange for bitcoins. There's a gold bug that believes: Fiat currency is sovereign equity In other words, when you hold Euros, you are "investing" in and holding equity in the Euro countries. Similarly, perhaps when you hold Bitcoins, you are "investing" in and holding equity in [cyberspace ?].