Is Cryptocurrency One Big Ponzi Scheme? - page 8.

kvipcn

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Quote from: gentlemand on January 17, 2019, 08:06:06 PM

A five year old account is asking this question?

Sold account much?

Did you even read what the post well? if you did then i think you don't understand what I was telling to say. Please read to understand first before saying anything. I get the impression that you didn't read my post very well.

gentlemand

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Welt Am Draht

A five year old account is asking this question?

Sold account much?

Plenty of them are pyramid schemes. It has enabled ponzi schemes in ways that weren't possible or easy before.

As for the entire concept, I think it's possible that all the thousands of companies and millions of people might not be here if it were.

Autumn_Rain

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A cryptocurrency's increasing demand is met with a fixed limited supply. This demand is set by a number of buyers willing to purchase, for a example, bitcoins. The price depends on the amount these buyers are willing to pay for bitcoin at this current stage. Bitcoin price is actually circular. Crashes happen from time to time.
Many people consider drop points to be an opportunity to enter the crypto world and to buy the dip.
This market is only evolving so time always brings new turning points.

ATMD

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Quote from: mich on January 17, 2019, 07:45:48 PM

This is a theory of many crypto nay-sayers is that we will all lose our total investment in the long run.
Not fair to assume this, if you ask me, since there are already people who have turned their investment into returns of profit.

I think the fact that there are people who have already turned their investments into returns of profit does not necessarily support the idea that cryptocurrency is a good investment in the long run.

In ponzi schemes, the people who invested in the beginning also get to turn their investments into huge returns of profit, but they are still fraudulent schemes in the long run.

That said, crypto is not a ponzi scheme, these are the characteristics of a ponzi scheme:

A guaranteed promise of high returns with little risk
Consistent flow of returns regardless of market conditions
Investments that have not been registered with the Securities and Exchange Commission (SEC)
Investment strategies that are a secret or described as too complex
Clients not allowed to view official paperwork for their investment
Clients facing difficulties removing their money

Evidently, the characteristics do not fit crypto at all.

aris av

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The Standard Protocol - Solving Inflation

The rise and fall of crypto prices is nothing new but in the past crypto prices also experienced the same thing. Crypto is not a ponzi scheme and because volatile makes tides.

mich

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This is a theory of many crypto nay-sayers is that we will all lose our total investment in the long run.
Not fair to assume this, if you ask me, since there are already people who have turned their investment into returns of profit.

bitfocus

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Crypto is not ponzi, but ponzi scammers are using crypto in many areas.

nydiacaskey01

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Quote from: kvipcn on January 15, 2019, 11:06:08 PM

But the volatile nature of these digital currencies got me thinking, what if the whole idea of blockchain and cryptocurrency is just one giant Ponzi Scheme?

I don't see the relationship between volatility and ponzi. With ponzi, you get earn from inviting people to invest in a scheme and a portion of that money invested will be given to you as a reward. Earnings is purely from pay-in from new investors. I don't see that in Bitcoin or Cryptocurrency. What I know is Cryptocurrency is used to run a Ponzi scheme, not Cryptocurrency is the ponzi scheme.

jpnl0005

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Many people do have different views about bitcoin some say its a Ponzi scheme and some says it's not whichever way it been defined I say Ponzi is no scam but it is the latest technology called digital money which is becoming acceptable in every part of the world

wxa7115

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Bitcoin is GOD

Quote from: kvipcn on January 15, 2019, 11:06:08 PM

The basic underlying idea behind the use and creation of cryptocurrency is to present financial freedom to everybody no matter where you find yourself in this world. But the volatile nature of these digital currencies got me thinking, what if the whole idea of blockchain and cryptocurrency is just one giant Ponzi Scheme? Within a short period of time, there have been about thousands of cryptocurrencies created. Majority of these digital currencies are either trying to solve problems of a particular cryptocurrency by presenting solutions they think can help improve financial freedom. This usually gets me wondering and thinking. If you don't agree with me on this, please share your thoughts... Grin

Most of the money in the market is concentrated in a few coins that are true attempts to bring freedom to people but most of the coins created in the market are scams and some of them are literally ponzi schemes paying previous investors with the money of new investors so you are not that wrong but at least the most powerful projects in the market seem to be honest about their pursuit of a new coin free of the control of governments and central banks.

So as long as you avoid most of the coins that are being recently created and only concentrate on the coins which the highest market caps you should be safe from all kind of scammers.

Reid

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Majority of investments are volatile. So can we call it all a "ponzi scheme"?

The big difference is just that they are regulated by governments or they had their approval. Bitcoin and other crypto currencies is still not. That is why its price keeps on fluctuating too much. But it doesn't mean it is a ponzi scheme.
Question is, do you want it to be controlled by your government or just let it be as how it was created? You are free here. You risk it all and then maybe you could find yourself in the right path when adoption starts booming.

adzino

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www.Crypto.Games: Multiple coins, multiple games

People should first understand the concept of ponzi scheme before they start accusing bitcoin/cryptocurrency a ponzie scheme. In ponzi, you will have to invest on the scheme will real money. That is not the case of crypto currency. No one will be forcing you to invest on it. You can earn through mining the coins. And how would actually the cryptocurrency work if it was actually a ponzi scheme?

kryptqnick

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Quote from: kvipcn on January 15, 2019, 11:06:08 PM

The basic underlying idea behind the use and creation of cryptocurrency is to present financial freedom to everybody no matter where you find yourself in this world. But the volatile nature of these digital currencies got me thinking, what if the whole idea of blockchain and cryptocurrency is just one giant Ponzi Scheme? Within a short period of time, there have been about thousands of cryptocurrencies created. Majority of these digital currencies are either trying to solve problems of a particular cryptocurrency by presenting solutions they think can help improve financial freedom. This usually gets me wondering and thinking. If you don't agree with me on this, please share your thoughts... Grin

There is a definition of what ponzi scheme is, and cryptocurrencies just don't fall under it even if you try to put them there. For starters, in any Ponzi there's hierarchy. There are people who created it, early adopters and those who got involved by other adopters. While there is a dev team and buyers of tokens, when you as a holder of crypto A tell your friends about it, you don't profit from it at all. So what if your friend is now also holding crypto A? The price can go up or down, and it won't matter who invited whom when it comes to profits and losses. Moreover, most of normal cryptos are distributed in a very decentralized way, while in the Ponzi the main people have access to enough product to ensure control.

Permabull

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Crypto isn't a ponzi, but as in any other financial market, most people lose money.

therhslv

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I would say cryptocurrency is like Stock , ofcourse there is cryptocurrencies that don't pay dividents or share profits from company sucess . But atleast with Crypto you can buy stuff , sell stuff and so on .
And there is tokens/coins with masternodes that pays you for help to run chain

If at the end it will turn out as Ponzi then it will be the biggest one in history , but i don't believe so it will ever happen

cizatext

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I don't agree with your assertion of cryptocurrency and blockchain being a big ponzi scheme due to the fact that a ponzi is just a scheme that promise certain amount of return on members investment but cryptocurrency on the other hand always state it own operations ideology which is being volatile in price.

dothebeats

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Perhaps some (well, most) of the cryptocurrencies sprouting nowadays are just money-grab opportunities for the devs and their teams. It has slowly turned into Ponzi scheme for these crypto but bitcoin still hasn't lost its identity yet, as it can still be used into a lot of transactions and still carry a significant value that is enough to keep it as an asset for most people. Good thing though that the governments are intervening and are proposing several types of regulations to address this concern, and so far it has been effective especially on places wherein fake ICOs plagued the markets already.

Slow death

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Quote from: kvipcn on January 15, 2019, 11:06:08 PM

Within a short period of time, there have been about thousands of cryptocurrencies created.

because many people discovered the gold mine. Many of these altcoins do not even have use, their creators just wanted to be rich in the easiest way in the world. Look at altcoin section, see how many senseless projects are created every week.

I see many youtube channels encouraging people to buy altcoin that has a lot of potential. When I investigate about the altcoin that the youtube guy says it has potential, I can not even believe it's the same altcoin because in my vision it's just a project meaningless. But there are many people who invest and lose money.

I saw Lisk go from 20,000 satoshi to 50,000 satoshi, then start the rebrand story and the price rose to 90,000 to 167,000 satoshi and when finally come the rebrand the price increased to 300,000 satoshi and I said to my friend: "sell all your lisk immediately because the price will drop ". and the price of lisk fell as I had anticipated.

This market is not ponzi scheme, but is highly volatile and the price rises only by manipulation and pump and dump schemes

Quote from: kvipcn on January 15, 2019, 11:06:08 PM

Majority of these digital currencies are either trying to solve problems of a particular cryptocurrency by presenting solutions they think can help improve financial freedom. This usually gets me wondering and thinking. If you don't agree with me on this, please share your thoughts... Grin

Most of these projects are just an illusion, they are only on the internet and not in real life

Unblock_news

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I don't think so, there's a lot of difference between crypto and ponzi scheme. Cryptocurrency itselt cannot be classified as Ponzi Scheme, maybe the people who are using the name of crypto for scamming can be the Ponzi Scheme.

Callanta787

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There is huge different between scams and ponzi schemes ,in cryptocurrency world the scammers only create fake projects hoping to lure buyers to buy the shitcoins and dump when they feel like but ponzi scheme is taking from some people to feed other people

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