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I wonder what will happen now that the ponzi structure is now gained new velocity as energy constraints have shut down proof of work mining. PoW creates central

I wonder what will happen now that the ponzi structure is now gained new velocity as energy constraints have shut down proof of work mining. PoW creates centralized collusion between those who can afford the best miners and this helped the velocity of the chain itself since it is only as good as the last mined block. Now that layer is gone, its this proof-of-stake which is a bit funny since, Ponzi schemes are also proof-of-stake, where the previous investors stake's performance signals the next until the order books flip to a highly skewed with a very long til, it results in the last group who were late to the party, get caught with the bags. I wouldn't be surprised if there are many whales dumping as they would know (and I hope so) what the new paradigm shift is in this digital ponzi gold rush. Also rather anxious for these fellas who promoted securities written on ethereum. The SEC flat out came out and said almost all cryptocurrencies passes the howey test recently. This PoS seems perfectly timed for the occassion.

mgraczyk 4y ago
You're confused, in a ponzi earlier investors are paid from the investments of future investors. That's not how PoS works. In Ethereum, everyone is diluted to pay stakers and the time of their investment does not matter.
- shabbatt 4y ago
  > You're confused, in a ponzi earlier investors are paid from the investments of future investors. so you mean like pre-mine token sales? wait aren't those securities because there is an expectation of returns from the work of others? what you write here could be used against you, consult your lawyer before you admit anything!
  - mightypirate 4y ago
  - mgraczyk 4y ago
    A pre-mine might make it a security, but it's basically the opposite of a ponzi. Not everything is a ponzi. I think you're just confusing different financial constructs with one another
    - shabbatt 4y ago
      It's worse than ponzi, its securities fraud.
- RC_ITR 4y ago
  You're confused. In The Ethereum Ponzi, early token holders 'stake' their tokens and are paid by future transactors. But here's the funny thing that no-one gets: all assets are a ponzi scheme (stocks are only worth something now because future rubes will buy them for more later), what makes bad ponzi schemes is when the underlying asset that everyone is speculating on doesn't do anything useful.
  - mgraczyk 4y ago
    But no, that's not the same. If the owners of a stock received a fee when somebody used the company's product, that wouldn't be a "ponzi". It lacks the key element that earlier investors are paid via the investments of future investors. That's just not what happens on Ethereum.
    - everfree 4y ago
      Edit: Was replying to comments too fast, misread what I was replying to.
      - mgraczyk 4y ago
        The people paying a fee are not investors. This is like saying the grocery store is a ponzi because customers pay the shop owner, who was an early investor. The people paying a fee do not expect to make a profit off of holding ethereum. (Some of them do, but that's a coincidence in the same way that a shop owner might shop at their own store).
    - RC_ITR 4y ago
      > It lacks the key element that earlier investors are paid via the investments of future investor. Are you under the impression that you can buy Ethereum without paying transaction fees to stakers?
      - mgraczyk 4y ago
        I am, because it's true. For example I own a lot of Ethereum and didn't pay any transaction fees to obtain it. Most ETH transactions work this way because they happen on centralized exchanges.
- Terr_ 4y ago
  > in a ponzi earlier investors are paid from the investments of future investors. Also, a Ponzi scheme requires fraud, where the earlier investors are being lied-to about where the money comes from in order to paint a false financial picture of the company. Not directly related to your point, but I wanted to put that out there since it's a pet-peeve of mine that "Ponzi" gets frequently misused as a label for anything the speaker thinks is unsustainable.
  - miohtama 4y ago
    By the OP definition, pension funds would be ponzis.

mgraczyk 4y ago

You're confused, in a ponzi earlier investors are paid from the investments of future investors. That's not how PoS works. In Ethereum, everyone is diluted to pay stakers and the time of their investment does not matter.

shabbatt 4y ago
> You're confused, in a ponzi earlier investors are paid from the investments of future investors. so you mean like pre-mine token sales? wait aren't those securities because there is an expectation of returns from the work of others? what you write here could be used against you, consult your lawyer before you admit anything!
- mightypirate 4y ago
- mgraczyk 4y ago
  A pre-mine might make it a security, but it's basically the opposite of a ponzi. Not everything is a ponzi. I think you're just confusing different financial constructs with one another
  - shabbatt 4y ago
    It's worse than ponzi, its securities fraud.
RC_ITR 4y ago
You're confused. In The Ethereum Ponzi, early token holders 'stake' their tokens and are paid by future transactors. But here's the funny thing that no-one gets: all assets are a ponzi scheme (stocks are only worth something now because future rubes will buy them for more later), what makes bad ponzi schemes is when the underlying asset that everyone is speculating on doesn't do anything useful.
- mgraczyk 4y ago
  But no, that's not the same. If the owners of a stock received a fee when somebody used the company's product, that wouldn't be a "ponzi". It lacks the key element that earlier investors are paid via the investments of future investors. That's just not what happens on Ethereum.
  - everfree 4y ago
    Edit: Was replying to comments too fast, misread what I was replying to.
    - mgraczyk 4y ago
      The people paying a fee are not investors. This is like saying the grocery store is a ponzi because customers pay the shop owner, who was an early investor. The people paying a fee do not expect to make a profit off of holding ethereum. (Some of them do, but that's a coincidence in the same way that a shop owner might shop at their own store).
  - RC_ITR 4y ago
    > It lacks the key element that earlier investors are paid via the investments of future investor. Are you under the impression that you can buy Ethereum without paying transaction fees to stakers?
    - mgraczyk 4y ago
      I am, because it's true. For example I own a lot of Ethereum and didn't pay any transaction fees to obtain it. Most ETH transactions work this way because they happen on centralized exchanges.
Terr_ 4y ago
> in a ponzi earlier investors are paid from the investments of future investors. Also, a Ponzi scheme requires fraud, where the earlier investors are being lied-to about where the money comes from in order to paint a false financial picture of the company. Not directly related to your point, but I wanted to put that out there since it's a pet-peeve of mine that "Ponzi" gets frequently misused as a label for anything the speaker thinks is unsustainable.
- miohtama 4y ago
  By the OP definition, pension funds would be ponzis.