Bitcoin: The Second Biggest Ponzi Scheme in History

productionhead

productionhead

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Bitcoins: The Second Biggest Ponzi Scheme in History

This digital so-called money will not be used to facilitate exchange. Nobody is going to be getting rid of an asset that has moved from $2 to $1,000 in one year in order to buy pizzas. People want to hang onto it, refusing to sell, in the hopes that it will go to $2,000. This is the classic mark of Ponzi scheme psychology. People do not buy the investment for the benefits that the investment provides as an investment, in other words, because it is a capital asset. They buy it only because it has gone up in price. They expect this to continue.
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This is the classic mark of Ponzi scheme psychology. People do not buy the investment for the benefits that the investment provides as an investment, in other words, because it is a capital asset. They buy it only because it has gone up in price. They expect this to continue.
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This quote applies to bitcoin, gold, and the stock of every company and every commodity currently being traded. The only asset people buy for any "real" purpose is property. If he's actually trying to tell us that almost everything in the world is a "ponzi scheme," he needs to lay off the shrooms and then hit the BST section to find a new designer for that site.
 
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o hai guyz said:
he needs to lay off the shrooms
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It's clear the author doesn't know what a Ponzi scheme is. A Ponzi scheme temporarily returns dividends to past investors by new investors. With bitcoin there are no "returns", you only get payment when you sell the your "asset", the bitcoins, or use them to purchase products/services. There are no dividends being paid out. I understand linkbaiting and playing on fear, but the author could at least know the definition of the schemes he is using to bait people into reading his content. I didn't bother reading, cause I'm not retarded - the headline was enough to showcase exactly what the point of the article was, misinformation.

A 'Pump and Dump' would have been closer to making the author and all the readers not look completely retarded. Still all those people waste so much time on fear, if you have no bitcoins then you have nothing to worry about. Sounds like the author and readers are jelly they didn't get in when they could have and are using mis-informed statements to justify them being "scared" to get in. I guess these articles are their "pat on the back for being on the sidelines filled with fear" - otherwise they wouldn't waste so much energy and time even talking about bitcoins or any asset they don't even own.​
 
Don't say that, I mean think of all those poor people long on Bitcoin now.
 
o hai guyz said:
This quote applies to bitcoin, gold, and the stock of every company and every commodity currently being traded. The only asset people buy for any "real" purpose is property. If he's actually trying to tell us that almost everything in the world is a "ponzi scheme," he needs to lay off the shrooms and then hit the BST section to find a new designer for that site.
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Not to knock bitcoin, but gold (and silver) has a shit ton of industrial and medical uses so it has actual economic utility beyond the obvious shiny jewelry. Also, company stocks are ownership in a legal entity that has capital and assets, so there is an actual book value. Some companies trade at speculative prices in relation to their book value, but there is still underlying value.

Bitcoin is straddling a weird area. It pretends to be a currency, but it obviously doesn't work as one with this volatility. Maybe it will mature and become a reliable currency, but in the meantime it has to be treated as a speculative asset.

Like Carter said, comparing it to a Ponzi scheme means the author doesn't understand what a Ponzi scheme is. Maybe it's a classic pump and dump or maybe we're all paying our mortgages with bitcoin 10 years from now, but for now it's just a speculative asset like baseball cards or Beanie Babies.
 
Unarmed Gunman said:
Not to knock bitcoin, but gold (and silver) has a shit ton of industrial and medical uses so it has actual economic utility beyond the obvious shiny jewelry. Also, company stocks are ownership in a legal entity that has capital and assets, so there is an actual book value. Some companies trade at speculative prices in relation to their book value, but there is still underlying value.
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Yet when you buy it, you dont buy it because you want to do something industrial or medical with it. Most people dont even buy gold. They buy a gold ETF. Which is theoretically exchangeable for gold but practically, if shit ever went that sour, theyd just not exchange it. Stocks are the same. Dont tell me anyone who trades in stocks wants (partial) control of the company.

Its cute. All the ways people fool themselves. dont buy coins and youve got nothing to worry about. By not buying coins, youre short coins. Youre short gold. Youre short everything you dont buy. If you cant liberate yourself from the idea that dollars are that one and only measurement of your accumulated wealth, trading anything isnt for you.

LukeP is probably counting his worth in coins. To him, the dollar price doesnt matter. Hes seeing the amount of coins hes got. And youre calling him a whackjob. But thats no different from putting a dollar price tag on everything you own. Hes bought the idea that bitcoin will become the worlds reserve. You dont. Maybe youre right, but youre doing the same thing.
 
"greater fool theory" is more accurate imo

as in.. i buy btc at $100 hoping there will be a greater fool to buy it at $1000. the guy who buys it at $1000 is hoping there will be a greater fool to buy it at $5000, and so on.
 
Here's what I say to people who claim to be 100% certain that bitcoin is going to crash: If you know it's going to crash, then surely you've invested 100% of your capital into shorting it, right? Lol at the guy who says "I KNOW it's a bubble, I KNOW it's going to crash" but is still too scared to actually bet against it.

wayn3 summed up my original point as well. When you go on etrade and buy gold, you don't give a fuck about gold itself, or its real-life uses, or in owning physical gold. You buy it because you expect the value of gold in relation to the US dollar to increase, so you can sell it at a profit, ie. speculating. This is completed unrelated to the definition of the phrase "ponzi scheme."
 
Pheasant said:
"greater fool theory" is more accurate imo

as in.. i buy btc at $100 hoping there will be a greater fool to buy it at $1000. the guy who buys it at $1000 is hoping there will be a greater fool to buy it at $5000, and so on.
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lmao. I bought a lot of shitcoins - android tokens (ADT) at 0.00000033 ltc each lol and there's already greater fools willing to pay at 15% higher. I'm in this shit for fun and speculation only. As a real long-term investment, I'd never buy any kind of bitcoin or shitcoin
 
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