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> Those of us who have been here for a long time heard this story plenty of times before. Getting into a pyramid scheme early does not grant anyone any special

by nuerow 5y ago

> Those of us who have been here for a long time heard this story plenty of times before. Getting into a pyramid scheme early does not grant anyone any special insight onto how it is not a pyramid scheme. All they get is the benefits from getting in early, confirmation bias, and an irrational belief that not only past performance guarantees future results but also there is absolutely no growth ceiling.

koonsolo 5y ago
I would love to be in a pyramid scheme where people keep sending me money. But that is not the case with crypto is it. Maybe take a look what pyramid schemes really look like. Here is the wikipedia article: https://en.wikipedia.org/wiki/Pyramid_scheme https://en.wikipedia.org/wiki/Pyramid_scheme
- Jensson 5y ago
  You are just looking at one specific type of pyramid scheme. See for example: > Matrix schemes use the same fraudulent, unsustainable system as a pyramid; here, the participants pay to join a waiting list for a desirable product, which only a fraction of them can ever receive. You pay dollars expecting to get a lot of dollars in the future. This is why most pay for bitcoin, and since it is impossible for everyone to make money it is a pyramid scheme. The future payoff can only happen if a lot of other people pay more dollars, which will be used to pay you. And since the system constantly extracts money to pay for all the hashing it is impossible for everyone to even break even, people will lose a ton of money in the end. This is different from normal currency trading. When you buy dollars you are betting on the US government and the US market to be strong so the dollar gains value. Bitcoin however doesn't have any backing like that, it is a negative sum game. Edit: The core concept of pyramid schemes is this, basically it is a business model which requires infinite new entrants to be sustainable. Bitcoin is like that, it only works as long as bitcoin enthusiasts continue to recruit new people to invest in bitcoin. Hence bitcoin is a pyramid scheme, even if there isn't any tax on sub transactions. > Pyramid schemes are based on network marketing, where each person in the pyramid is tasked with bringing in their own subordinates and in turn profiting from their sales or recruitments. This fails because it essentially requires an infinite number of people to join the company.
  - koonsolo 5y ago
    First of all, I didn't have to go into a waiting list to buy crypto. Second of all, I didn't buy crypto because it will give me an infinite supply of money given to me by subordinates. I buy crypto when I think it's undervalued. I sell when I think it's overvalued. Doesn't everyone???? I'm also not recruiting any subordinates. So sorry, but your pyramid scheme theory falls short.

by nuerow 5y ago

koonsolo 5y ago

I would love to be in a pyramid scheme where people keep sending me money. But that is not the case with crypto is it. Maybe take a look what pyramid schemes really look like. Here is the wikipedia article: https://en.wikipedia.org/wiki/Pyramid_scheme https://en.wikipedia.org/wiki/Pyramid_scheme

Jensson 5y ago
You are just looking at one specific type of pyramid scheme. See for example: > Matrix schemes use the same fraudulent, unsustainable system as a pyramid; here, the participants pay to join a waiting list for a desirable product, which only a fraction of them can ever receive. You pay dollars expecting to get a lot of dollars in the future. This is why most pay for bitcoin, and since it is impossible for everyone to make money it is a pyramid scheme. The future payoff can only happen if a lot of other people pay more dollars, which will be used to pay you. And since the system constantly extracts money to pay for all the hashing it is impossible for everyone to even break even, people will lose a ton of money in the end. This is different from normal currency trading. When you buy dollars you are betting on the US government and the US market to be strong so the dollar gains value. Bitcoin however doesn't have any backing like that, it is a negative sum game. Edit: The core concept of pyramid schemes is this, basically it is a business model which requires infinite new entrants to be sustainable. Bitcoin is like that, it only works as long as bitcoin enthusiasts continue to recruit new people to invest in bitcoin. Hence bitcoin is a pyramid scheme, even if there isn't any tax on sub transactions. > Pyramid schemes are based on network marketing, where each person in the pyramid is tasked with bringing in their own subordinates and in turn profiting from their sales or recruitments. This fails because it essentially requires an infinite number of people to join the company.
- koonsolo 5y ago
  First of all, I didn't have to go into a waiting list to buy crypto. Second of all, I didn't buy crypto because it will give me an infinite supply of money given to me by subordinates. I buy crypto when I think it's undervalued. I sell when I think it's overvalued. Doesn't everyone???? I'm also not recruiting any subordinates. So sorry, but your pyramid scheme theory falls short.