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>A Ponzi scheme is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. Please explain to me how B
by ratsmack 5y ago
>A Ponzi scheme is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors.
Please explain to me how Bitcoin is not a Ponzi scheme. I may be to old to fully understand, but I see zero underlying (intrinsic) value in any of these crypto coins.
And on top of it all, they burn through enormous amounts of electrical energy that is lost as waste heat.
- retrac 5y ago> zero underlying (intrinsic) value Cryptocurrencies, in general, do have value from their utility as a currency. They do sort-of-work in that regard. So perhaps as long as they're legal the value is somewhat above zero, as long as some are using it to settle transactions. Can anything like the current prices, especially on thousands of competing currencies all serving the same effective role, be justified long-term? That's a rather different question. It's, at a minimum, an enormous speculative bubble, in my opinion. Ponzi might not be the wrong word for some of the wilder "store of value" claims.