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Because if you have some, you become rich.

by doopy1 6y ago

Salgat 6y ago
This is exactly it. Cryptocoins aren't actually used in any practical sense for the vast majority of transactions (beyond the black market). It's all a gambling racket/ponzi scheme that has simply gotten big enough for larger players to want to get in on the action. That doesn't make it legitimate in its utility, it just means that it's not regulated enough for people to not be taken advantage of. Going to be bizarre seeing the fallout when bitcoin eventually collapses after it stabilizes in cost and all the people buying in on the hype dry up and start selling after seeing it not going up after several years.
- ryanlol 6y ago
  Why would the black market not be sufficient to prop it up?
- alwillis 6y ago
  How many times does this have to be debunked? “Why Bitcoin is Not a Ponzi Scheme: Point by Point”— https://www.swanbitcoin.com/why-bitcoin-is-not-a-ponzi-scheme-point-by-point/ https://www.swanbitcoin.com/why-bitcoin-is-not-a-ponzi-schem...
  - Salgat 5y ago
    Is it literally a ponzi scheme? Of course not. It's very abstracted but the concept is the same. The problem with your article is that everything they argue is reliant on the price keeping increasing. Everyone buys into the hype of something not fully understanding it. Bitcoin simply has a much larger cap before it falls apart, as bigger and bigger players start pouring money into it in hopes of those wild returns before it all comes crashing. The problem Bitcoin has not yet addressed is real-world usage. When the vast majority of transactions are gamblers buying up in hopes of making money, what do you think will happen when the price finally hits a ceiling and all those gamblers start to acknowledge that the price won't go up anymore, especially after several years? They'll start to sell, causing a panic. And you'll see it recover a little, but never reach past a certain point, making the next recovery worse, until it gradually drops down into nothing. By then people will either move onto other coins to gamble on or just give up entirely on it. I will absolutely change my position on all of this the day Bitcoin becomes used in a way that justifies its price beyond "that thing that magically keeps climbing in price that everyone's gambling their money on".
    - alwillis 5y ago
      Is it literally a ponzi scheme? Of course not. It's very abstracted but the concept is the same. I'm going to say no on this. It's nothing like a Ponzi scheme by definition, which is the point of the article. A Ponzi scheme is run by a person or a group of people to pay existing participants with the membership fees of new people. Since nobody runs bitcoin and nobody is paying anyone, it's not a Ponzi scheme. Buying a monetary asset where the price is based on market dynamics is how the free market works. I will absolutely change my position on all of this the day Bitcoin becomes used in a way that justifies… You don't understand bitcoin, so you likely won't change your position. Bitcoin maxis like to say people buy bitcoin at the price they deserve… many more people will buy bitcoin at $100,000 USD or $500,000 USD than at the current price of $56,000 because they didn't get it early on. Perhaps if you read "Bitcoin Obsoletes All Other Money" you might start to get it: https://unchained-capital.com/blog/bitcoin-obsoletes-all-other-money/ https://unchained-capital.com/blog/bitcoin-obsoletes-all-oth...

Because if you have some, you become rich.

by doopy1 6y ago

Because if you have some, you become rich.

This is exactly it. Cryptocoins aren't actually used in any practical sense for the vast majority of transactions (beyond the black market). It's all a gambling racket/ponzi scheme that has simply gotten big enough for larger players to want to get in on the action. That doesn't make it legitimate in its utility, it just means that it's not regulated enough for people to not be taken advantage of. Going to be bizarre seeing the fallout when bitcoin eventually collapses after it stabilizes in cost and all the people buying in on the hype dry up and start selling after seeing it not going up after several years.

ryanlol 6y ago
Why would the black market not be sufficient to prop it up?
alwillis 6y ago
How many times does this have to be debunked? “Why Bitcoin is Not a Ponzi Scheme: Point by Point”— https://www.swanbitcoin.com/why-bitcoin-is-not-a-ponzi-scheme-point-by-point/ https://www.swanbitcoin.com/why-bitcoin-is-not-a-ponzi-schem...
- Salgat 5y ago
  Is it literally a ponzi scheme? Of course not. It's very abstracted but the concept is the same. The problem with your article is that everything they argue is reliant on the price keeping increasing. Everyone buys into the hype of something not fully understanding it. Bitcoin simply has a much larger cap before it falls apart, as bigger and bigger players start pouring money into it in hopes of those wild returns before it all comes crashing. The problem Bitcoin has not yet addressed is real-world usage. When the vast majority of transactions are gamblers buying up in hopes of making money, what do you think will happen when the price finally hits a ceiling and all those gamblers start to acknowledge that the price won't go up anymore, especially after several years? They'll start to sell, causing a panic. And you'll see it recover a little, but never reach past a certain point, making the next recovery worse, until it gradually drops down into nothing. By then people will either move onto other coins to gamble on or just give up entirely on it. I will absolutely change my position on all of this the day Bitcoin becomes used in a way that justifies its price beyond "that thing that magically keeps climbing in price that everyone's gambling their money on".
  - alwillis 5y ago
    Is it literally a ponzi scheme? Of course not. It's very abstracted but the concept is the same. I'm going to say no on this. It's nothing like a Ponzi scheme by definition, which is the point of the article. A Ponzi scheme is run by a person or a group of people to pay existing participants with the membership fees of new people. Since nobody runs bitcoin and nobody is paying anyone, it's not a Ponzi scheme. Buying a monetary asset where the price is based on market dynamics is how the free market works. I will absolutely change my position on all of this the day Bitcoin becomes used in a way that justifies… You don't understand bitcoin, so you likely won't change your position. Bitcoin maxis like to say people buy bitcoin at the price they deserve… many more people will buy bitcoin at $100,000 USD or $500,000 USD than at the current price of $56,000 because they didn't get it early on. Perhaps if you read "Bitcoin Obsoletes All Other Money" you might start to get it: https://unchained-capital.com/blog/bitcoin-obsoletes-all-other-money/ https://unchained-capital.com/blog/bitcoin-obsoletes-all-oth...