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Money goes in, with the promise that you will get more money out at the end. While this works in some cases (e.g. investing in a business that produces value),
by MereInterest 6y ago
Money goes in, with the promise that you will get more money out at the end. While this works in some cases (e.g. investing in a business that produces value), in this case the only other money in the system comes from other people buying into it. Therefore, I believe bitcoin to be equivalent to a ponzi scheme.
Implicit in this is the assumption that bitcoin does not provide value in itself, which is another discussion altogether.
- LanceH 6y agoWhen you buy bitcoin, you get a share of the whole of bitcoin. You buy this at the current market value. You may hope it goes up, but it may not. You buy 1 bitcoin at market price, you have 1 bitcoin at market price. In a ponzi scheme, you buy in at a fictional price and are paid interest derived from the investments of future investors. Bitcoin purchasers don't receive anything from future investments unless they actually sell, again at market price. The word here is speculation, not ponzi. It's no different than buying/selling land that people may or may not want.
- solveit 6y ago> Money goes in, with the promise that you will get more money out at the end. Who promises?
- jsight 6y ago> Money goes in, with the promise that you will get more money out at the end. I'm not aware of any such promise.