3 ms·
Please understand what a Ponzi scheme is. A Ponzi scheme is where the con artist tricks you into thinking you bought an asset when really they just pocketed mo
by trixie_ 5y ago
Please understand what a Ponzi scheme is.
A Ponzi scheme is where the con artist tricks you into thinking you bought an asset when really they just pocketed most of the money, giving you back a little bit and calling an 'investment return'
No matter whether you think Bitcoin has real 'value' or not, that has nothing to do with a ponzi scheme. You can buy Bitcoin and hold it yourself without a middle man.
It's no different than holding stocks or gold, you can buy/sell the full asset at anytime. There's no middle man preventing you from selling the full asset and take 'interest payments' instead.
- nwah1 5y agoIt requires continual mining, which means expending electricity. Which shows up as some combination transaction costs or inflation that is continually siphoned off. Which means new money needs to be perpetually flowing into the system simply to secure the ledger. But that is all wasted, so it is actually a negative-sum wealth transfer if we include all the actual useful things we could've done with the energy. If you buy beanie babies or gold, there is no such siphoning.
- trixie_ 5y agoFirst why did you even reply? We’re taking about what a Ponzi scheme is and energy use has nothing to do with it. I’ll reply to your criticism anyways - There is absolutely energy required to store gold, monitor gold, protect gold, transport gold, mine gold, etc… any financial system requires energy to operate.