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Seems all currency is a ponzi scheme. Even gold is valuable only due to scarcity and peoples desire to have it. It's been currency for thousands of years and
by jacob019 13y ago
Seems all currency is a ponzi scheme. Even gold is valuable only due to scarcity and peoples desire to have it. It's been currency for thousands of years and only recently has it been used in industry. That said, I keep expecting this bitcoin bubble to burst and it keeps going up. Could it stabilize as a true global currency, I doubt it, but maybe.
- Rimpinths 13y agoGold become desirable because it is an ideal metal to use for jewelry. That came first and its use as a currency came second. In that sense, it has been used in industry longer that it has been a currency.
- jacob019 13y agoExcellent point, I wouldn't however use USD, EUR, or RMB for jewelry. The point remains that BTC has no less intrinsic value than any fiat currency. As soon as we promise each other work in exchange for something that thing gains value. In a sense BTC is more like gold than dollars because it is mined into circulation, rather than being conjured into existence by a central bank.
- ericb 13y agoIsn't that argument just turtles all the way down, though? If people stopped wanting jewelry, gold would not be desirable.