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It's just a Ponzi scheme where everyone is invested in the scheme because they hold crypto of some kind. Then one day someone will wake up, decide they don't w
by foobarbazetc 5y ago
It's just a Ponzi scheme where everyone is invested in the scheme because they hold crypto of some kind.
Then one day someone will wake up, decide they don't want that kind of exposure, and the whole thing collapses.
- jkepler 5y agoYou're correct, except that the waking up with be those holding dollars loosing confidence, not bitcoiners. If you look at the classic definition of a ponzi scheme, bitcoin doesn't fit, though central bank fiat currencies do. See macro economist Lyn Alden's excellent article for the full explanation: https://www.lynalden.com/bitcoin-ponzi-scheme/ https://www.lynalden.com/bitcoin-ponzi-scheme/