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You obviously don't understand any of this. Is USD not a ponzi scheme? Is Quantitative Easing not a ponzi scheme? Is MMT not a ponzi scheme?

by edem 5y ago

sharemywin 5y ago
So, what your saying is cryto needs an army...
serverholic 5y ago
They are a ponzi scheme, the world is full of ponzi schemes. Stock market growth partly relies on young people getting educated about stocks in high school and college then investing. You literally have the previous generation indoctrinating the newest generation into the scheme.
jodrellblank 5y ago
Ponzi's scheme was that early investors got paid with the buy-in from the later investors, out to infinity, and the early investors crowing about how much money they made generated the hype for the later investors to buy in, and overall no value was added to the world to support any of this, it was exclusively a money-funnel from lots of late people to a few early people. It makes no sense to talk about USD being a Ponzi scheme because you can't exchange your $100 USD for someone else's $2000 USD, and later they exchange it for $4000 USD from people excited to pay $4000 USD for $100 USD in the hope they can sell $100 USD for $8000 USD in future. It's clearly madness. Anyone would pay approximately $100 USD for your $100 USD, all other things being equal (no money laundering, no additional services wink wink, and not thinking about century timescales where historic value or inflation comes into it, etc). While "wealth begets wealth" in many ways such as compound interest, simply holding $100 USD from years ago doesn't by itself give you any advantage over people in the present day. Holding BitCoin from 2012 does give you advantage over people in the present day, and that advantage comes not from any value BitCoin itself generates, but from the present day buyers seeing the increase in money the 2012 buyers got for no effort, and wanting part of it, so throwing more money at it than the 2012 buyers did. Quantitative Easing isn't a Ponzi scheme because you don't buy Quantitative Easing hoping you can sell your Quantititative Easing for more to new people interested in the hype of Quantitative Easing. Exchanging USD for steel, fashioning it into a steel bolt, and exchanging the bolt for more USD, is not a Ponzi scheme. Buying shares in a company, the company making steel bolts and becoming more valueable, and your share of it becoming more valuable, is not a Ponzi scheme. Exchanging USD for one BitCoin, then exchanging one BitCoin for significantly more USD, where that extra USD comes from the other person, who doesn't value the BitCoin but only hopes the BitCoin will increase in value in future, makes it very much like a Ponzi scheme. You can grow flowers in your garden, you can find someone to exchange their company shares for your flowers, that doesn't make flowers a currency. You can declare that USD is a currency with an army behind it, that doesn't make it a Ponzi scheme. The open question is whether BitCoin can get enough buy-in from people wanting to cash out for free money to generate a secondary market of people exchanging BitCoin for goods and services, large enough that when no more people want to buy in for the free-money aspect, people still want to buy-in for the practical use cases. Since most of the practical and legal use cases are well served by USD, the faff of exchanging USD for BitCoin to buy bolts and lose consumer protections instead of exchanging the USD for bolts seems value removing, not value adding.

You obviously don't understand any of this. Is USD not a ponzi scheme? Is Quantitative Easing not a ponzi scheme? Is MMT not a ponzi scheme?

by edem 5y ago

You obviously don't understand any of this. Is USD not a ponzi scheme? Is Quantitative Easing not a ponzi scheme? Is MMT not a ponzi scheme?

sharemywin 5y ago

So, what your saying is cryto needs an army...

serverholic 5y ago

They are a ponzi scheme, the world is full of ponzi schemes. Stock market growth partly relies on young people getting educated about stocks in high school and college then investing. You literally have the previous generation indoctrinating the newest generation into the scheme.

jodrellblank 5y ago

Ponzi's scheme was that early investors got paid with the buy-in from the later investors, out to infinity, and the early investors crowing about how much money they made generated the hype for the later investors to buy in, and overall no value was added to the world to support any of this, it was exclusively a money-funnel from lots of late people to a few early people. It makes no sense to talk about USD being a Ponzi scheme because you can't exchange your $100 USD for someone else's $2000 USD, and later they exchange it for $4000 USD from people excited to pay $4000 USD for $100 USD in the hope they can sell $100 USD for $8000 USD in future. It's clearly madness. Anyone would pay approximately $100 USD for your $100 USD, all other things being equal (no money laundering, no additional services wink wink, and not thinking about century timescales where historic value or inflation comes into it, etc). While "wealth begets wealth" in many ways such as compound interest, simply holding $100 USD from years ago doesn't by itself give you any advantage over people in the present day. Holding BitCoin from 2012 does give you advantage over people in the present day, and that advantage comes not from any value BitCoin itself generates, but from the present day buyers seeing the increase in money the 2012 buyers got for no effort, and wanting part of it, so throwing more money at it than the 2012 buyers did. Quantitative Easing isn't a Ponzi scheme because you don't buy Quantitative Easing hoping you can sell your Quantititative Easing for more to new people interested in the hype of Quantitative Easing. Exchanging USD for steel, fashioning it into a steel bolt, and exchanging the bolt for more USD, is not a Ponzi scheme. Buying shares in a company, the company making steel bolts and becoming more valueable, and your share of it becoming more valuable, is not a Ponzi scheme. Exchanging USD for one BitCoin, then exchanging one BitCoin for significantly more USD, where that extra USD comes from the other person, who doesn't value the BitCoin but only hopes the BitCoin will increase in value in future, makes it very much like a Ponzi scheme. You can grow flowers in your garden, you can find someone to exchange their company shares for your flowers, that doesn't make flowers a currency. You can declare that USD is a currency with an army behind it, that doesn't make it a Ponzi scheme. The open question is whether BitCoin can get enough buy-in from people wanting to cash out for free money to generate a secondary market of people exchanging BitCoin for goods and services, large enough that when no more people want to buy in for the free-money aspect, people still want to buy-in for the practical use cases. Since most of the practical and legal use cases are well served by USD, the faff of exchanging USD for BitCoin to buy bolts and lose consumer protections instead of exchanging the USD for bolts seems value removing, not value adding.