3 ms·
At the moment it's mostly pyramid scheme. While useful, it's clear Bitcoin's value has become disconnected from it's utility as a currency. Perhaps a more inte
by ahi 15y ago
At the moment it's mostly pyramid scheme. While useful, it's clear Bitcoin's value has become disconnected from it's utility as a currency.
Perhaps a more interesting question, can a new global/digital currency gain widespread adoption without massive deflation? Bitcoin has deflationary features, but the recent increase in values is mostly just a lot of people pouring into the currency. How can a distributed cryptographic currency be designed to get around this problem?
- fexl 15y agoIt is definitely not a pyramid scheme. A pyramid scheme is a program which promises investment returns which are only sustainable by capital infusions from new investors. The creators of Bitcoin never promised investment returns, therefore it is not a pyramid scheme. You might argue that it is analogous to a tulip mania, but that's different. If two people agree voluntarily on a price for a tulip bulb or a bitcoin, that is all that matters. If you wish to hold some bitcoin, I suggest that you not get carried away. Perhaps allocate at most 5% of your net worth to it, and whenever that allocation rises to 8% or so, sell enough to bring it back down to 5%. That way if bitcoin drops to zero, you can lose 5% of your net worth and not lose any sleep over it.