4 ms·

The author is correct, Bitcoin isn't a ponzi scheme. But it works like one. Accurately it's a decentralised pyramid scheme with no actual legitimate use case

The author is correct, Bitcoin isn't a ponzi scheme. But it works like one. Accurately it's a decentralised pyramid scheme with no actual legitimate use case or any intrinsic value.

npoc 3y ago
Try learning about the debasement of fiat currencies and the effect on society.
latchkey 3y ago
I have bitcoin. I borrow against it for other things. That's my legitimate use case.
- colesantiago 3y ago
  No. Because this is completely speculative and not a legitimate use case. You are passing around valueless tokens onto the next greater fool.
  - latchkey 3y ago
    Wrong. I'm not passing anything around. I'm borrowing against my existing equity. Just like I own a house. I can go to the bank, ask for a loan against the equity in my house. The bank then hands me cash. That's a totally valid use case and possible today. The best part is that I don't need any sort of permission to do so. No credit checks. No banks. No government involvement. In fact, it is so possible, the market for this on a single platform is over $7.8 BILLION. https://aave.com/ https://aave.com/
    - colesantiago 3y ago
      > That's a totally valid use case and possible today. The best part is that I don't need any sort of permission to do so. No credit checks. No banks. No government involvement. Because that is definitely something that regular consumers do and a problem that needs solving. > In fact, it is so possible, the market for this on a single platform is over $7.8 BILLION. https://aave.com/ https://aave.com/ What you've just showed me is effectively an actual ponzi scheme all built on nothing with no doubt there is artificial inflation going on there.
      - latchkey 3y ago
        > Because that is definitely something that regular consumers do and a problem that needs solving. Just because you don't think it is useful for you, doesn't mean that it is not legitimate. > What you've just showed me is effectively an actual ponzi scheme all built on nothing with no doubt there is artificial inflation going on there. It is what happens in the banking system all day long. So, if you think this is a ponzi, then the entire banking system is a ponzi. I've given you a legitimate use case and all you can do is yell ponzi. That doesn't help your argument at all and makes you look like the greater fool.
        colesantiago 3y ago
        > Just because you don't think it is useful for you, doesn't mean that it is not legitimate. That's because it isn't legitimate at all. > It is what happens in the banking system all day long. What you've shown me is even worse as this isn't even regulated in any shape or form. We both know that what is happening with Tether is fraudulent as it is backed by nothing and not regulated. ^0, which means that any USDT on AAVE is pretty much assumed to be pumped up by Tether and AAVE is facilitating fraud. I wouldn't trust a system that holds over $110M of funds that gets 'stuck' because of a bug and users are unable to take their funds out. ^1 How is loaning tokens backed by fraud a legitimate use case? > I've given you a legitimate use case and all you can do is yell ponzi. That doesn't help your argument at all and makes you look like the greater fool. So your solution is to use a system that is loaning tokens backed by nothing, propped up by Tether that is backed by nothing, which creates an even bigger decentralised unregulated ponzi scheme? ^0 https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether https://www.bloomberg.com/news/features/2021-10-07/crypto-my... ^1 https://web3isgoinggreat.com/?id=aave-protocol-polygon-bug https://web3isgoinggreat.com/?id=aave-protocol-polygon-bug
        deleted 3y ago
        [deleted]
        latchkey 3y ago
        USD isn't backed by anything other than a military and a government that prints endless streams of it. Bitcoin is bitcoin and it has a value that people are willing to pay for it. My home is also not 'backed' by anything, yet a bank is willing to give me equity loans on it. "Backed" is irrelevant in this context. As long as my loan maintains its collateralization ratio, that's all that matters. As for the AAVE bug, it was resolved. Banks fail and people can't get their money out on a weekend either. As for USDT, people keep spouting its impending doom, yet it has survived every single bear market since it was created. People have claimed bitcoin is doomed too... yet here we are 14 years later...

The author is correct, Bitcoin isn't a ponzi scheme. But it works like one. Accurately it's a decentralised pyramid scheme with no actual legitimate use case or any intrinsic value.

npoc 3y ago

Try learning about the debasement of fiat currencies and the effect on society.

latchkey 3y ago

I have bitcoin. I borrow against it for other things. That's my legitimate use case.

colesantiago 3y ago
No. Because this is completely speculative and not a legitimate use case. You are passing around valueless tokens onto the next greater fool.
- latchkey 3y ago
  Wrong. I'm not passing anything around. I'm borrowing against my existing equity. Just like I own a house. I can go to the bank, ask for a loan against the equity in my house. The bank then hands me cash. That's a totally valid use case and possible today. The best part is that I don't need any sort of permission to do so. No credit checks. No banks. No government involvement. In fact, it is so possible, the market for this on a single platform is over $7.8 BILLION. https://aave.com/ https://aave.com/
  - colesantiago 3y ago
    > That's a totally valid use case and possible today. The best part is that I don't need any sort of permission to do so. No credit checks. No banks. No government involvement. Because that is definitely something that regular consumers do and a problem that needs solving. > In fact, it is so possible, the market for this on a single platform is over $7.8 BILLION. https://aave.com/ https://aave.com/ What you've just showed me is effectively an actual ponzi scheme all built on nothing with no doubt there is artificial inflation going on there.
    - latchkey 3y ago
      > Because that is definitely something that regular consumers do and a problem that needs solving. Just because you don't think it is useful for you, doesn't mean that it is not legitimate. > What you've just showed me is effectively an actual ponzi scheme all built on nothing with no doubt there is artificial inflation going on there. It is what happens in the banking system all day long. So, if you think this is a ponzi, then the entire banking system is a ponzi. I've given you a legitimate use case and all you can do is yell ponzi. That doesn't help your argument at all and makes you look like the greater fool.
      - colesantiago 3y ago
        > Just because you don't think it is useful for you, doesn't mean that it is not legitimate. That's because it isn't legitimate at all. > It is what happens in the banking system all day long. What you've shown me is even worse as this isn't even regulated in any shape or form. We both know that what is happening with Tether is fraudulent as it is backed by nothing and not regulated. ^0, which means that any USDT on AAVE is pretty much assumed to be pumped up by Tether and AAVE is facilitating fraud. I wouldn't trust a system that holds over $110M of funds that gets 'stuck' because of a bug and users are unable to take their funds out. ^1 How is loaning tokens backed by fraud a legitimate use case? > I've given you a legitimate use case and all you can do is yell ponzi. That doesn't help your argument at all and makes you look like the greater fool. So your solution is to use a system that is loaning tokens backed by nothing, propped up by Tether that is backed by nothing, which creates an even bigger decentralised unregulated ponzi scheme? ^0 https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether https://www.bloomberg.com/news/features/2021-10-07/crypto-my... ^1 https://web3isgoinggreat.com/?id=aave-protocol-polygon-bug https://web3isgoinggreat.com/?id=aave-protocol-polygon-bug
        deleted 3y ago
        [deleted]
        latchkey 3y ago
        USD isn't backed by anything other than a military and a government that prints endless streams of it. Bitcoin is bitcoin and it has a value that people are willing to pay for it. My home is also not 'backed' by anything, yet a bank is willing to give me equity loans on it. "Backed" is irrelevant in this context. As long as my loan maintains its collateralization ratio, that's all that matters. As for the AAVE bug, it was resolved. Banks fail and people can't get their money out on a weekend either. As for USDT, people keep spouting its impending doom, yet it has survived every single bear market since it was created. People have claimed bitcoin is doomed too... yet here we are 14 years later...