is Bitcoin a pyramid scheme? - page 2.

LadyCoin

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Quote from: zakalwe on March 25, 2018, 12:48:58 PM

Bitcoin is the opposite of a pyramid scheme from the point of view of Bitcoin miners. The Bitcoin protocol is designed like a cannibalistic arms race. Every additional miner prompts the protocol to increase the difficulty of mining. From a social point of view, Bitcoin is a pure market. The price of Bitcoins fluctuates based on market supply, demand, and perceived value.

Former US bank chief Wells Fargo Dick Kovacevich spoke of a bitcoin virtual currency. In fact, Kovacevich believes that bitcoin is a pyramid scheme like a ponzi scheme.
Kovacevich himself claimed not to see bitcoin as a financial crime. "There is no crime-related thing that happens.This is just a pyramid scheme, you bet that someone will buy it and some people right

uszaty43

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Quote from: zakalwe on March 25, 2018, 12:48:58 PM

Bitcoin is the opposite of a pyramid scheme from the point of view of Bitcoin miners. The Bitcoin protocol is designed like a cannibalistic arms race. Every additional miner prompts the protocol to increase the difficulty of mining. From a social point of view, Bitcoin is a pure market. The price of Bitcoins fluctuates based on market supply, demand, and perceived value.

The problem is that a lot of newbies think that bitcoin is just a pyramid scheme because other users need to buy in order to see the price increasing, but it just works like anything else. Like gold, silver, or any other shit asset.
came on people..

Hui8

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Quote from: zakalwe on March 25, 2018, 12:48:58 PM

Bitcoin is the opposite of a pyramid scheme from the point of view of Bitcoin miners. The Bitcoin protocol is designed like a cannibalistic arms race. Every additional miner prompts the protocol to increase the difficulty of mining. From a social point of view, Bitcoin is a pure market. The price of Bitcoins fluctuates based on market supply, demand, and perceived value.

I read the question again and again to understand and recall how bitcoin actually works and tried to relate with it but its not even close to being the pyramid scheme. The crypto currency or bitcoin for instance is just price tagged algorithm which can be sent over the protocol from peer to peer and transmit the values. Does that even seem to be related to it? May be that is just the operation of bitcoin. Okay let's talk about the bitcoin earning and spreading ways. Is there any offer that satoshi levied that those who will get most of the people on board will have X percentage from the bitcoin market cap. I don't think so and neither of them trying to do so.

In any sense this is not valid statement at all.

Kprawn

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This --> perceived value

Bitcoin is as valuable as people perceive it to be, because it fulfil some need or some use case for them. A Ponzi scheme does

not fulfil some need, but rather provides unrealistic high returns on their investment. The use case is very important,

because it has more than one function for many people. Wink

markj113

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Quote from: zakalwe on March 25, 2018, 12:48:58 PM

Bitcoin is the opposite of a pyramid scheme from the point of view of Bitcoin miners. The Bitcoin protocol is designed like a cannibalistic arms race. Every additional miner prompts the protocol to increase the difficulty of mining. From a social point of view, Bitcoin is a pure market. The price of Bitcoins fluctuates based on market supply, demand, and perceived value.

I think the market is more manipulated than most people realise.

Exchange bots and a few large players dictate the price by creating fake supply/demand.

gentlemand

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Welt Am Draht

No. It doesn't fit the criteria.

It does fit the greater fool theory and that's what 95% or more of people here are depending on. They only want to sell to someone else for more than they paid for it.

There may well come a point where it flips and anyone letting go of any of it is a greater fool than the person buying it.

godzillarekt007

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Floki Robot

Quote from: frank2018 on March 25, 2018, 12:56:05 PM

Indeed it is. But I cannot see the pyramiding structure you try to imply. How does it become a pyramiding scheme knowing that you are the one investing on it and not asking for your those under you. You cannot say a comparison without a distinct word equivalent to it.

I think people get confused with making gains and ponzi schemes. Because you make more money by other people getting involved, they seemingly think this is a ponzi scheme. Pretty stupid because every capitlistic venture is exactly that, more people getting in makes the early investors rich. Most people are stupid, don't think like the average human.

YuginKadoya

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Bitcoin is not a pyramid scheme, Well a pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products or services. As recruiting multiplies, recruiting becomes quickly impossible, while in bitcoin there is no need to recruit someone in order to profit, If you invest in bitcoin your money will grew over time when the value increases, But that is one part earning in it, But bitcoin is literally not made that way because this is really a currency that always fluctuates, And the given services was a secure storage and a fast transaction. don't lump it in a pyramiding scheme just because you can earn by investing with it.

frank2018

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Indeed it is. But I cannot see the pyramiding structure you try to imply. How does it become a pyramiding scheme knowing that you are the one investing on it and not asking for your those under you. You cannot say a comparison without a distinct word equivalent to it.

zakalwe

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Bitcoin is the opposite of a pyramid scheme from the point of view of Bitcoin miners. The Bitcoin protocol is designed like a cannibalistic arms race. Every additional miner prompts the protocol to increase the difficulty of mining. From a social point of view, Bitcoin is a pure market. The price of Bitcoins fluctuates based on market supply, demand, and perceived value.

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