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Crypto is a Ponzi scheme.
by cdme 2y ago
Crypto is a Ponzi scheme.
- TZubiri 2y agoNope Ethereum is a VM for example. Quite hard to see how it can be construed as a pyramid scheme tbh.
- yanko 2y agoOn Aug 15, 1971 this statement becomes true for US dollar - Executive Order 11615
- immibis 2y agoAll currencies, including crypto, fiat, and chickens, have been Ponzi schemes since the beginning of time and will continue to be until the end of time. It's fundamental to their nature.
- ggm 2y agoWhen the state does it, it's not ponzi until the state implodes and then it is.
- thaumasiotes 2y agoCurrencies lack the suggestion that holding them will bring you a profit. That isn't true of chickens, which are significantly better in investment terms than currency - holding chickens definitely will bring you a profit, unless you screw it up.
- ETH_start 2y agoYou can use Ethereum without ever speculating in crypto-native assets like ETH. Transacting in USD-backed stablecoins is a major use-case of Ethereum.
- lottin 2y agoDo we have any evidence? Why would anyone use a USD derivative instead of just USD?
- PaulRobinson 2y agoLower transaction fees, available to people without USD bank accounts (most of the World), and you can use smart contracts for more complex transactions than sender -> receiver. I’m very bearish on crypto generally, but DeFi has started to catch my attention a little bit, as it does have potential to shake up finance more broadly.
- lottin 2y agoI asked if we have evidence because the author made an interesting point in a recent interview on the "Bankless" podcast: "When we hear people like Tether saying we're successfully banking the unbanked, you can look at the median transaction over the Tron network, and it's between $100 and $300. If you looked at comparable numbers in the US for credit card transactions, the median transactions is between $40 and $80. And so, do you buy that they're banking the unbanked third world who are moving a lot more money around than people in the US do?"
- manfredz 2y agoActually cryptocurrency perhaps more resemble a pyramid scheme because early investors profit disproportionately from latecomers, who buy at inflated prices. Transaction fees play a key role, as miners or validators earn significant fees, often benefiting early adopters with large holdings who promote network usage. Thus, high fees primarily enrich those already invested, leaving newcomers to bear the cost.