5 ms·

How do you define a pyramid scheme? Thing go up in value?

by nathias 6y ago

asjdflakjsdf 6y ago
I'd basically see it as an investment opportunity that greatly favours early adopters.
- inter_netuser 6y ago
  70% of ethereum was sold at rock bottom prices to "early adopters" in a presale. You are right. It is a ponzi.
  - ZitchDog 6y ago
    It must also be unsustainable without new entrants.
  - asenna 6y ago
    Most of the early investors (very early, startup phase) of Amazon and Apple got shares in the company at rock bottom prices. Does that make them a ponzi scheme?
- nathias 6y ago
  I hope you then also count stocks, land ownership etc. as such.
  - asjdflakjsdf 6y ago
    to a degree but not so much. Land has real value. Stocks are different again. The idea that eth is considered more of a stock than a currency is the root of its problems imo. I have a real itch to one day see a crypto being widely adapted as an actual currency. I think dogecoin is the only one in our current crypto eco-system that has even a fraction of a chance in filling that space. I'm sure it will happen some day, but maybe not with our current crop of cryptos.
    - nathias 6y ago
      Yea, ETH is more like a stock of the biggest crypto lab, its kind of the Apple of crypto (in the way it transferred innovation happening in a field under into its own garden). I think we will see a currency widely adopted, and its going to be BTC or BTC-based (fractional banking but with crypto).
    - matheusmoreira 6y ago
      > I have a real itch to one day see a crypto being widely adapted as an actual currency. Monero is closest to achieving the original cryptocurrency dream. Private and anonymous transactions, good speeds, low fees, ASIC and GPU resistance, committed developers that are actually improving the coin over time, open source wallets even on mobile. > I think dogecoin is the only one in our current crypto eco-system that has even a fraction of a chance in filling that space. Why do you say that?
- dmihal 6y ago
  Which investment opportunities don't favor early adopters?
- matheusmoreira 6y ago
  By this defintion any investment is a pyramid scheme. Even savings accounts give the greatest return to those who start early.
mratsim 6y ago
A Ponzi is when the returns of early investors are "sustained" by the flux of new investors. A cashflow producing venture is not a Ponzi since that cashflow is supposed to ensure the returns of all investors.
- skybrian 6y ago
  The problem with this definition is that it’s normal and legitimate for later investors to buy out early investors. You need to know more about what’s really going on to tell whether it’s a fraud or not. Recommended reading: Lying for Money: How Legendary Frauds Reveal the Workings of Our World

How do you define a pyramid scheme? Thing go up in value?

asjdflakjsdf 6y ago

I'd basically see it as an investment opportunity that greatly favours early adopters.

inter_netuser 6y ago
70% of ethereum was sold at rock bottom prices to "early adopters" in a presale. You are right. It is a ponzi.
- ZitchDog 6y ago
  It must also be unsustainable without new entrants.
- asenna 6y ago
  Most of the early investors (very early, startup phase) of Amazon and Apple got shares in the company at rock bottom prices. Does that make them a ponzi scheme?
nathias 6y ago
I hope you then also count stocks, land ownership etc. as such.
- asjdflakjsdf 6y ago
  to a degree but not so much. Land has real value. Stocks are different again. The idea that eth is considered more of a stock than a currency is the root of its problems imo. I have a real itch to one day see a crypto being widely adapted as an actual currency. I think dogecoin is the only one in our current crypto eco-system that has even a fraction of a chance in filling that space. I'm sure it will happen some day, but maybe not with our current crop of cryptos.
  - nathias 6y ago
    Yea, ETH is more like a stock of the biggest crypto lab, its kind of the Apple of crypto (in the way it transferred innovation happening in a field under into its own garden). I think we will see a currency widely adopted, and its going to be BTC or BTC-based (fractional banking but with crypto).
  - matheusmoreira 6y ago
    > I have a real itch to one day see a crypto being widely adapted as an actual currency. Monero is closest to achieving the original cryptocurrency dream. Private and anonymous transactions, good speeds, low fees, ASIC and GPU resistance, committed developers that are actually improving the coin over time, open source wallets even on mobile. > I think dogecoin is the only one in our current crypto eco-system that has even a fraction of a chance in filling that space. Why do you say that?
dmihal 6y ago
Which investment opportunities don't favor early adopters?
matheusmoreira 6y ago
By this defintion any investment is a pyramid scheme. Even savings accounts give the greatest return to those who start early.

mratsim 6y ago

A Ponzi is when the returns of early investors are "sustained" by the flux of new investors. A cashflow producing venture is not a Ponzi since that cashflow is supposed to ensure the returns of all investors.

skybrian 6y ago
The problem with this definition is that it’s normal and legitimate for later investors to buy out early investors. You need to know more about what’s really going on to tell whether it’s a fraud or not. Recommended reading: Lying for Money: How Legendary Frauds Reveal the Workings of Our World