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In a nutshell: A ponzi scheme has no external revenue, instead the payoffs come from new investors. This is the case when investing in Bitcoin.
by amin 5y ago
In a nutshell: A ponzi scheme has no external revenue, instead the payoffs come from new investors. This is the case when investing in Bitcoin.
- topspin 5y agoThe crucial difference that excludes Bitcoin (and any other such blockchain currency) is that a Ponzi scheme deceives investors by pretending it is profitable and the profits are derived from legitimate investments. Bitcoin et al. does not do this; there is no deception, no fraud and, therefore, no Ponzi.
- yunohn 5y ago> profits are derived from legitimate investments Exactly, crypto doesn’t even claim to have legitimate investment profit. All of it is from newcomers pouring money into the pot…
- baby 5y agoWait what? Are you saying you don’t get spammed by people who tell you it’s going to the moon?
- topspin 5y agoThat claim has been and is made about all manner of financial instruments and most of that isn't Ponzi either. To be a Ponzi scheme you need the fraud; "it's safe, legitimate, consistently profitable investment backed by high quality equities with little to no risk, and it's going to the moon!" That's a Ponzi Scheme. Bitcoin doesn't claim to be a low risk AAA investment vehicle.
- rabuse 5y agoThat's not inherently built into the Bitcoin spec. People commit fraud with cash since, forever.
- Bilal_io 5y agoDoes the USD have external revenue? Is so, what is it?
- amin 5y agoPeople who have US dollars, nearly always use it as a currency (a medium of exchange), not as investment.
- sb057 5y agoUS Dollars would be a wise investment if the supply was fixed but also continued being used as a medium of exchange.
- deleted 5y ago[deleted]
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- chasebank 5y agoNo but the USD is also inflationary, not deflationary. I don’t understand the comparison.
- hanniabu 5y agoWhat's their reasoning for calling Ethereum a ponzi then?