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1 btc is worth more than a car and people are still calling it a ponzi scheme. I find that very amusing for some reason.
by Day1 5y ago
1 btc is worth more than a car and people are still calling it a ponzi scheme. I find that very amusing for some reason.
- hypertele-Xii 5y agoA lucrative ponzi scheme is still a ponzi scheme. Pity the sucker left holding the bag worth everyone's cars who exited successfully.
- trixie_ 5y agoThis can be said for stocks as well, but stocks are not a ponzi scheme. A ponzi scheme is where interest on the investment are funded by other investors in the scheme. Unless you are talking about some interest earning crypto program, maybe THAT is a ponzi scheme. But the crypto you buy and sell on an open exchange is definitely not. Learn what words mean.
- hypertele-Xii 5y ago> A ponzi scheme is where interest on the investment are funded by other investors in the scheme. Where does the "value" of Bitcoin come from? From being able to sell it to new "investors" at higher margin than you originally "invested" into it. The Bitcoin network creates no actual value. Everything is percieved speculation on its (apparent lack of) usefulness. You cannot convert Bitcoin back into the energy that was used to compute it. It's a wealth transfer mechanism from those who don't understand how it works to those who do.
- trixie_ 5y agoThe perceived value of the asset has nothing to do with whether something is a ponzi scheme or not. You should read the definition. I'll answer your question anyways of what gives Bitcoin value. It's value comes from being a digital store of value. Before bitcoin there was none. You had a bank account which was a proxy for physical cash. There was no way to hold the cash personally, digitally, and send it anywhere you want. Before Bitcoin the best analog was gold - hard to create more of versus fiat which is incredible easy to dilute which is why you would want to diversify out of it. Gold though is slow to send, hard to verify, etc... Bitcoin basically has the properties of gold in electronic form - hard to create, easy to send, easy to verify, hundreds of thousands of dollars worth can be held securely in your hand. THAT is what makes Bitcoin valuable. Show me an alternative store of value with those properties.