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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
by Salgat 6y 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 6y agoIs 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...