sorry if this point was brought up already, but I can't follow the 1000's of posts here:
What if pirate would pay out all funds he received from customers, without the interest promised. if he still has the funds, then this would be at least something.
now the question is if he really has kept all the funds he got..?
Topic: If BS&T didn't start out as a ponzi, did it fail because it paid out in BTC? (Read 1362 times)
August 30, 2012, 03:20:45 PM
August 28, 2012, 02:44:06 AM
If it didn't start out in a fraudulent manner, then is it possible it ended up being one because he was no longer able to manipulate the market to pay everyone back in BTC bought back at a lower price?
This is like Stockholm syndrome. No, it was a scam from day one. Even if he was delusional and thought he really could earn this much consistently he would have paid out what he has left by now. 
August 28, 2012, 12:23:57 AM
It is smart for me to pay people in BTC because that is what I know I'll have available. If I promise 40BTC for a job I know I'll have it available in BTC no matter what because I see it in my wallet. If I promise $440 worth of BTC I'm at the mercy of other people's valuations at the time I have to pay.
Now promising to pay BTC that I don't actually have yet could leave me in big hurt. That's essentially betting against BTC and I don't recommend it.
Now promising to pay BTC that I don't actually have yet could leave me in big hurt. That's essentially betting against BTC and I don't recommend it.
August 28, 2012, 12:21:36 AM
Can you tell us a currency that doesn't have exchange rates with other currencies?
August 28, 2012, 12:19:02 AM
Yes I'm sure there are lots of interesting schemes ones can come up with... I throw something out there:
It is because of a flaw in bitcoin that pirates scheme was so successful.
That is because they are potentially infinitely valuable. Bitcoins, right now are not deflationary they are highly inflationary but they have a potential infinite speculative value. Nothing has this property.
With gold for example you have to store and guard it with bitcoins storage is free and guarding is piled upon the people who still need new bitcoins.
Even with fiat money there is a penalty for having too much of it, that is the increased exposure to bank failure and fees.
So with any other thing there is some factor to dampen the greed and eventually spend it.
Not so with bitcoin. So in a sense bitcoins greatest strength is one of it's greatest weaknesses. You could say people were too stupid to invest in pirates scheme, but greed makes stupid and with bitcoin there is no limit to greed.
It's hard but it is the truth make sure to push that orange ignore button on the left if you hate me for saying it.
It is because of a flaw in bitcoin that pirates scheme was so successful.
That is because they are potentially infinitely valuable. Bitcoins, right now are not deflationary they are highly inflationary but they have a potential infinite speculative value. Nothing has this property.
With gold for example you have to store and guard it with bitcoins storage is free and guarding is piled upon the people who still need new bitcoins.
Even with fiat money there is a penalty for having too much of it, that is the increased exposure to bank failure and fees.
So with any other thing there is some factor to dampen the greed and eventually spend it.
Not so with bitcoin. So in a sense bitcoins greatest strength is one of it's greatest weaknesses. You could say people were too stupid to invest in pirates scheme, but greed makes stupid and with bitcoin there is no limit to greed.
It's hard but it is the truth make sure to push that orange ignore button on the left if you hate me for saying it.
August 27, 2012, 11:28:09 PM
If it didn't start out in a fraudulent manner, then is it possible it ended up being one because he was no longer able to manipulate the market to pay everyone back in BTC bought back at a lower price?
I know that BTC is a currency in it's own right, but it's still largely tied to an exchange rate. I'm not sure it's smart at this point for anyone to pay or earn interest in BTC. I know if I asked or gave someone a BTC loan, I'd tie it to the amount in USD.
I know that BTC is a currency in it's own right, but it's still largely tied to an exchange rate. I'm not sure it's smart at this point for anyone to pay or earn interest in BTC. I know if I asked or gave someone a BTC loan, I'd tie it to the amount in USD.
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