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"Bitcoin is a pyramid scheme in that everyone is counting on someone else to want them" Exactly like gold. Yet you don't see people claiming gold is a "pyramid
by mrb 14y ago
"Bitcoin is a pyramid scheme in that everyone is counting on someone else to want them"
Exactly like gold. Yet you don't see people claiming gold is a "pyramid scheme", now do you?
Most of gold's value is dictated purely by speculation and jewelry use (people want it because it is... rare - there is no other underlying reason).
(People say that gold has value because it has industrial uses, but these uses only justify a small fraction of its price, which is in most parts a result of pure speculation and jewelry use).
- Guvante 14y agoI don't know, Gold has a well known historical value, but the recent spike in value caused be distaste of Dollars is very similar to what is happening the Bitcoins. The problem with Bitcoins is that market has already proven it is capable of spiking to zero. Gold could drop, but it is very unlikely to drop too far below its historical levels (since there is demand for it by itself) in contrast, Bitcoins don't have any straight demand.
- mrb 14y agoNo, Bitcoin has never fallen to zero. (If you have in mind the events of June 2011, it dropped to 0 because of bogus trades by the hacker; they were later reverted by MtGox).
- BrokenPipe 14y agothere is demand, international ecommerce with anonyimity