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And he is right. It is very obvious. Failed currency? Yes, that was the envisioned utility and it failed to deliver that for many reasons. Ponzi scheme? it is

And he is right. It is very obvious. Failed currency? Yes, that was the envisioned utility and it failed to deliver that for many reasons. Ponzi scheme? it is obvious, current holders make money when someone else buy it at a higher price. Anyone says otherwise, need to counter those two facts or else we could assume he/she hyping it for profit or following blinded ideology/hype. It also fintech porn, that many on forums like HN masturbate on mentally while day-dreaming about the prospect of anarchist decentralized self-governing societies.. Truth often ugly, I'm ready to be downvoted ^^.

lowkey 5y ago
Bitcoin is the opposite of a Ponzi scheme. A Ponzi scheme relies on fraudulent accounting to work. The earlier investor is paid a 'return' from funds that come from the principal of later investors. The distinction between a Ponzi scheme and an honest investment pool is that the latter maintains clear and honest accounting of investor funds and ensures that each investor's principal and gains are accurately accounted for. With Bitcoin, the transaction ledger is public and immutable, making it impossible to conduct a Ponzi scheme on the Bitcoin network itself. If everything is verifiable it becomes much harder to run scams.
- aogaili 5y ago
  I get your point. Perhaps not a Ponzi scheme in the traditional sense. In the Ponzi scheme you described, the value of the currency is stable but the account is hidden. In Bitcoin, we have the opposite. The "Ponzi scheme" is enabled on bitcoin not by hiding the bank account, but manipulation of the value of the currency itself. In both cases, the n holder is benefiting from the n+1 holder by convincing them to pay more for what the sell as a profitable investment, and each transaction value should be greater than the one before it for it to work. So it is a form of a Ponzi scheme, not the traditional one you described. Sure, I have a transparent ledger, but what exactly do those numbers account for? I tell you, it is a great, wonderful investment, easy way to make money, it is the future, just pay me x amount more than what I paid. The issue here is that bitcoin is not appreciating due to advancements, growth or the extra value it providers to society, in fact as it stands it has negative impact. No, it is appreciating only due to social hype in the intersubjective social reality. It is a scam.

lowkey 5y ago

Bitcoin is the opposite of a Ponzi scheme. A Ponzi scheme relies on fraudulent accounting to work. The earlier investor is paid a 'return' from funds that come from the principal of later investors. The distinction between a Ponzi scheme and an honest investment pool is that the latter maintains clear and honest accounting of investor funds and ensures that each investor's principal and gains are accurately accounted for. With Bitcoin, the transaction ledger is public and immutable, making it impossible to conduct a Ponzi scheme on the Bitcoin network itself. If everything is verifiable it becomes much harder to run scams.

aogaili 5y ago
I get your point. Perhaps not a Ponzi scheme in the traditional sense. In the Ponzi scheme you described, the value of the currency is stable but the account is hidden. In Bitcoin, we have the opposite. The "Ponzi scheme" is enabled on bitcoin not by hiding the bank account, but manipulation of the value of the currency itself. In both cases, the n holder is benefiting from the n+1 holder by convincing them to pay more for what the sell as a profitable investment, and each transaction value should be greater than the one before it for it to work. So it is a form of a Ponzi scheme, not the traditional one you described. Sure, I have a transparent ledger, but what exactly do those numbers account for? I tell you, it is a great, wonderful investment, easy way to make money, it is the future, just pay me x amount more than what I paid. The issue here is that bitcoin is not appreciating due to advancements, growth or the extra value it providers to society, in fact as it stands it has negative impact. No, it is appreciating only due to social hype in the intersubjective social reality. It is a scam.