I do think SS ponzi be viewed as a Ponzi because the paid out money is coming from the people putting into it today, not from the growth of the scheme made by bitcoin people receiving scheme. The Journal of San Wikipedia History. Smerconish had Bitcoin Paul on, who although he has difficulty grasping the fact you wikipedia touch bitcoin, is an advocate of a decentralized currency and against fiat currency. After all, SS and other programs like Welfare and Medicaid are called pirate. Retrieved February 24, Ponzi invested or participating pirate also be an "operator".
And, at some point this summer, the time finally came. Once you associate a user with their Bitcoin address you can read all their transactions on the blockchain, hence to ensure anonymity Bitcoin addresses must be changed frequently and it must be used together with other instruments, like TOR. What Makes Bitcoin Valuable? Retrieved 23 August Retrieved November 26, With Bitcoin, you can be your own bank. Archived from the original on June 16,
Bitcoin is not a ponzi scheme for the simple reason that it has real utility, or at least wikipedia have, in remittance, for the unbanked, bitcoin merchants who want to save fees etc. By adding some white space it becomes easier to the reader ponzi read it. Archived from the original on May 28, Scheme that are mostly about some other cryptocurrency belong elsewhere. Im over pirate and I never say it is a ponzi scheme because it is not.
They are locked out of home ownership, and the security that it provides, forever. And this is just what they have planned for the little guy. Ms Hudes can enlighten you on how similar practices are taken against soverign nations in need of a loan. The World Bank represents something far more evil and insidious. They, along with the IMF, have caused more poverty than any other entities in the history of mankind. Wars leave ruins that can be repaired in a couple of years. These vultures have attacked nations with the intent of destroying them for generations.
Outside of Mark Karpeles and Mt. It is an international mafia designed to prey upon this world through monetary policy and corruption. Many countries economies are on the brink of collapse or are recovering from one. And these two monsters have their fingerprints all over many of them. Cancers tend to destroy living things from the inside out. How can such a system be considered valuable or even usable currency? You don't seem to grasp the concept that holding is using a currency.
It's traditionally called saving. And people are making transactions, which is why the blocks are full. Your analysis is all correct, you just portray the situation for Bitcoin very pessimistically. I think you're being careful to not conclude that Bitcoin is actually a ponzi scheme once and for all, because you know that Bitcoin is still useful to many people, and will be more useful once the network issues are fixed.
I think it's reasonable to conclude that Bitcoin is temporarily edging into meeting the sufficient conditions for being a ponzi scheme, with many caveats. It's worth acknowledging that the cryptocurrency in general has moved so far beyond Bitcoin and even digital cash, and that there is immense value budding all over the crypto scene. This is my point. The issues that Bitcoin is currently facing is what is turning it into a ponzi-like system ripe for exploitation of investment fraud. I don't want to be pessimistic, but the issues it is currently facing and the situation it is currently in is causing many to turn a blind eye to its problems simply to keep up the bubble pumping hype.
I'm very optimistic for the future of cryptocurrencies and their applications. There is immense value in secure p2p currency systems. But there is little value to gain from exploiting the systems as if they are ponzi schemes and that will only further hinder progress for crypto currencies as a whole. It,s just an example. So ye, it can be used it dentistry. I heard some time ago they are trying to use gold in finding cure for cancer. When it is physical commodity with set of unique properties no other element has, who knows for what can be used in the future, in addition to what we use it now.
With BTC, the only thing you can do with it, is to give it to somebody else: While looking at "unique" properties of BTC it has none. A lot of other crpyto's have same better properties.
So they are not unique. That is outside of the scope of looking intrinsic value of a bitcoin. A decentralised data transmission and storage network holds intrinsic value in the same way gold does. Bitcoin is not a ponzi scheme for the simple reason that it has real utility, or at least will have, in remittance, for the unbanked, for merchants who want to save fees etc.
Ponzis, or pyramid schemes, however, always just sell some worthless shell product or service, for appearances' sake, when the real profits are just from new people buying in. Ponzis and bubbles have many similarities, but are not the same.
For one, ponzi schemes are intentional and have someone facilitating them to scam people from their money, while bubbles form organically. Ponzis are also very centralized, at least historically. A store of value who's supply isn't controlled by the U. Fed a private company is a good use case to me. Older people tend not to care about that because they know a Fed collapse is likely to occur long after they're gone. And they hate bitcoin because it could potentially accelerate that timeline.
You actually think people in the mainstream media are looking at transaction fees before calling it a Ponzi scheme? They just look at the price charts and see something they cannot explain on a financial level about something they do not understand on a technical level Bitcoin was called a Ponzi scheme way before fees reached the past few months levels, way before last year's influx of newcomers.
My brother told me to sell all my bitcoins because its a ponzy. I said I don't have enough and right now transaction fees would take most of it anyways. And WHO keeps those transactions huh? I explained that the miners do, and he said "what miners"? Then I gave up.
I feel like that picture of Moses and the Ark. Well anyone who knows what a Ponzi scheme actually is knows that there's no way that bitcoin could be a Ponzi scheme.
Bitcoins don't make returns so there is no need to take in new money to pay out old investors - so its a complete misunderstanding of both what bitcoin is and how Ponzi schemes operate. It could be considered a house of cards or a pump-and-dump depending on your opinion of its potential and scalability but that is another discussion entirely.
And those things are only possible if you buy Bitcoin to make a profit in fiat. If you believe in the currency, the fiat value is irrelevant.
Now how do I get bit coin. If I work for you will you pay me in it? Then I guess I'll get a job that pays in fiat and then use that to buy bitcoin. As CNN often does, they have two viewpoints on for a segment to debate.
One guy was bullish and the other bearish. The guy not buying in did call it a scam etc but CNN was not saying that is the case. Smerconish had Ron Paul on, who although he has difficulty grasping the fact you can't touch bitcoin, is an advocate of a decentralized currency and against fiat currency.
This is clickbaity reddit posting at its finest. It was a two sided debate and Dan pretty much shut that idiot Vivek Wadhwa down. CNN rarely has two viewpoints, that is a joke. Usually it's a panel of 6 people with the same viewpoint engaging in a circlejerk. But they saw the same thing as me and they have no clue about bitcoin. So now they will just use this as a counter argument.
Bitcoin is literally not a ponzi scheme. It does not fit the conditions of a Ponzi because you actually receive what you pay for Same thing happens within the stock market Does that mean stocks have one of the defining characteristics of a ponzi scheme? A stock represents ownership in a company that produces stuff. If Apple's stock goes to a penny due to a moment of collective insanity someone can buy all of Apple and own all its assets and collect the revenue.
Bitcoin's only purpose is to be traded for fiat. Bitcoin represents ownership in something, too. A ponzi scheme means that you're really never receiving what you paid for. But you get what you pay for with bitcoin: You're not making a good case for why bitcoin should be considered a ponzi. I recommend thinking it through a bit more. And if you go to foreign hotels, a lot of them only have CNN. Pretty obvious how bad they want to spread the crap all over the world.
Just a bunch of haters and that's why they will always be broke. Most people that trash it are broke. If not broke, they hating cause they missed the boat when it was cheap. Companies that engage in Ponzi schemes focus all of their energy into attracting new clients to make investments.
Ponzi schemes rely on a constant flow of new investments to continue to provide returns to older investors. When this flow runs out, the scheme falls apart. As long as transaction fees remain so high to make it unusable as a legitimate currency and renders the majority of wallets frozen due to lack of enough funds to cover transaction fees.
Then bitcoin itself is not a Ponzi scheme. Bitcoin fundamentally has no operator. Like learn yourself some bitcoin. Maybe you misread my point. I'm not saying its intended or supposed to be a ponzi scheme.
But it ends being abused and exploited as one as long as it remains unusable as an actual cryptocurrency due to high transaction fees. You can say it looks like a ponzi scheme in a very general sense but it in no way functions like a ponzi scheme. A ponzi scheme necessitates that new investors cover the returns to pay out old investors. Bitcoin is nothing like this because it does not generate returns and there is no operator defrauding people.
I previously said that you could consider bitcoin to be a house of cards or a pump-and-dump but it is fundamentally NOT a ponzi scheme just because of the definition of a ponzi scheme. A ponzi scheme necessitates that the scheme is set up such that buying into the scheme now intends or hopes to cash out on people who buy into it later. There is no single ringleader or operator, just a noncentralized collective whole participating in activities that very strongly resembles a ponzi scheme.
Again, I have said it can look like a Ponzi scheme on a vague, general level but it is no way an actual Ponzi scheme. There is a definition of Ponzi schemes and crypto just doesn't fit it for reasons that you have already admitted. Call it a house of cards or a pump-and-dump because those are more general terms that can more accurately apply to the situation.
There is no operator of crypto. There are no promised returns, no dividends to reinvest. In a Ponzi scheme you can make money without selling your position, in crypto you cannot make any money without selling your position.
A successful Ponzi scheme results in the operator fleeing the country with everyone's money. This is not possible in crypto because there is no operator and no one has access to your accounts but you. Kind of like those "multilevel marketing" companies that want you and your friends to "sell soda" but actually just find other people to "sell soda" because "you can all get rich.
It isn't a pyramid scheme because it does involve actually buying and selling products. So they call it MLM. Does it look like a pyramid scheme? Yes, except for the fact that you are buying and selling products. Does it look like a Ponzi scheme? Somewhat, but only in the sense that you are paying someone else a lot more money than you will realistically make.
These are names of specific types of scams and the fact that there are differences in the process mean that they are not the same. They all look similar because someone at the top is getting rich and people at the bottom are losing money - that doesn't mean they are all the same. You are morphing Ponzi scheme in such way that you can pretty much say anything is a Ponzi scheme. Satoshi still has billions worth of coin hasn't he? Although I don't believe that it is a Ponzi scheme because 1 it is not fraudulent and 2 there is no promise of return.
But sticking to the definition it is not so far, by attracting new investors you just make the price going up. A Ponzi scheme ; also a Ponzi game is a fraudulent investment operation where the operator generates returns for older investors through revenue paid by new investors, rather than from legitimate business activities or profit of financial trading.
Operators of Ponzi schemes can be either individuals or corporations, and grab the attention of new investors by offering short-term returns that are either abnormally high or unusually consistent.
29 Jul Bitcoin Savings & Trust (abbreviated as BST) was a ponzi scheme operated by Trendon Shavers (then known as Pirate). It was launched in November as First Pirate Savings & Trust. Pirate claimed to have been selling bitcoins to some local tight-lipped buyers, and that he started BST to provide more. This is a list of Ponzi schemes, fraudulent investment operations that pay out returns to investors from money paid in by subsequent investors, rather than from any actual profit earned. Contents. [hide]. 1 Historical examples. 19th century. s; s. 20th century. s; s; s . 19 Nov Bitcoin clearly does not fall into the definition of a “Ponzi scheme” at all, and this has been double-checked by what many have called the world's “The World Bank” is, according to Wikipedia, “A United Nations international financial institution that provides loans to developing nations for 'capital programs.