Topic: Is Cryptocurrency One Big Ponzi Scheme? - page 9. (Read 18123 times)
Cryptocurrency can never be classified as a ponzi by the very definition of the term. But I think I understand what you mean. You must be referring to the many existing (and more can be coming if we will not stop this insanity) SHITCOINS that affected the marketplace since I can remember. Scammers find the best platform which they can utilize to create wealth almost out of nothing...selling their coins or tokens and when they get filled they just jump into an island away from the scrutiny of the law and enjoy their hoard...all leaving the investor or the token buyers holding empty bags. Ponzi is of a scam but not all scams are ponzi.
I don't think blockchain technology is a ponzi scam but I think the promoters and projects developers (with the idea of using icos to raise funds from the market) that makes it to look like a ponzi scam. Blockchain technology is still at the early stages and we Should not expect it to be a perfect market or close to perfection like others market like stock and forex that are subject to some regulations.
The most important part of a ponzi scheme is the intentional fraud. Insurance is NOT a ponzi scheme. Cryptocurrencies are not a ponzi scheme. They are crash able markets, but they are NOT fraud.
Why you compare crypto with Ponzi scheme? Crypto-currency doesn't promised any fixed return. Ponzi Scheme are promising fixed return and that's why it's called Ponzi scheme. There nothing fixed that you will loss or gain on crypto trading. Although there is money rotation on trading but it's not called ponzi due to there is no any return policy. It's just your own responsibility. So ponzi scheme totally different from crypto-currency. It's true that crypto-currency using for Ponzi scheme, like Bitconnect scam.
A deeper Knowledge of Ponzi schemes would show you how far from it Bitcoin is. A Ponzi scheme creates a network where people constantly put money into it the system to support expansion and this funds are always at the disposal of the master mind.
Bitcoin connects enthusiasts and wants to create a peer to peer network. But there is no heirarchy where funds are drawn from bottom to top
Bitcoin connects enthusiasts and wants to create a peer to peer network. But there is no heirarchy where funds are drawn from bottom to top
Ponzi schemes does not work on Supply and Demand. A typical Ponzi scheme use very aggressive incentive marketing strategies, where a specific profit is promised every month to entice people to invest in it. Bitcoin does not guarantee and specific return on your investment and nobody are using aggressive marketing to influence people to buy any bitcoins.
Bitcoin is all about choice and people are told very early on that it is a high risk investment. In most Ponzi schemes, people get monthly returns on their investments and then it suddenly stops when the Ponzi operator takes the money and run.
Bitcoin is all about choice and people are told very early on that it is a high risk investment. In most Ponzi schemes, people get monthly returns on their investments and then it suddenly stops when the Ponzi operator takes the money and run.
not !! Digital currency is a real form of digitizing the financial system that exists at this time. to support the level of progress of the time it is very necessary to be able to make flexibility in conducting various financial transactions. Digital currency is something that is needed, with the security, flexibility and convenience that is obtained, the digital currency is something that must be implemented from now on !!
One of the most used arguments that people use to claim why bitcoin is a ponzi scheme, is that bitcoin is a ponzi because new money coming in sort of makes money for the people who bought in first; whereas if there's no new money coming in, the people who bought in first can dump on the new money. I find this argument stupid as hell. Bitcoin's price is based on supply and demand, and so is gold. If gold was to rise in price, and people would buy gold to hopefully profit from it, does it make gold a ponzi scheme? I don't think so.
There are crypto's that really aimed to become giant ponzi scheme, remember coins like bitconnect and other same projects that hidden themselves in form of crypto so people will not notice what they really are.
You misunderstood the idea of blockchain and even thought about it as a big ponzi scheme. Crypto's are meant to be our alternative option for money transfers but as time goes mature the usage of it becomes different.
By the way, you should understand what's the meaning of ponzi scheme and compare it to crypto.
https://www.investopedia.com/terms/p/ponzischeme.asp
If a coin devs promises you to give you big return after investing to their coin, that's the ponzi.
You misunderstood the idea of blockchain and even thought about it as a big ponzi scheme. Crypto's are meant to be our alternative option for money transfers but as time goes mature the usage of it becomes different.
By the way, you should understand what's the meaning of ponzi scheme and compare it to crypto.
https://www.investopedia.com/terms/p/ponzischeme.asp
If a coin devs promises you to give you big return after investing to their coin, that's the ponzi.
a ponzi is where some guy has a big bank account. everyone puts lots of money in. but the guy only gives out pennies on the dollar as interest/dividends to keep people from asking for all their funds back.
crypto is not a big moneypot with a mr ponzi
crypto is like buying a asset. like a car. you own the asset and you decide when you buy/sell it.
you dont earn interest/dividends from it. you dont have any guys holding value on your behalf.
the asset just has a price depending on what price people want to buy and sell it for. which is why its volatile
crypto is not a big moneypot with a mr ponzi
crypto is like buying a asset. like a car. you own the asset and you decide when you buy/sell it.
you dont earn interest/dividends from it. you dont have any guys holding value on your behalf.
the asset just has a price depending on what price people want to buy and sell it for. which is why its volatile
being volatile doesn't mean a Ponzi scheme i suggest reading the definition of it first: https://en.wikipedia.org/wiki/Ponzi_scheme
as for thousands of shitcoins that are created in short periods of time, that still doesn't mean Ponzi scheme. it is just creation of useless junk that they sell people and they buy it because they hope to make profit. it is a form of scam but it still doesn't match the Ponzi scheme definition.
Thanks anyway for the link that explains ponzi scheme, I actually understand what it means. People have lost a lot of money investing in cryptocurrency as a result of the changes in prices. Anyway I'm just spreading my thoughts to also get people to share theirs. as for thousands of shitcoins that are created in short periods of time, that still doesn't mean Ponzi scheme. it is just creation of useless junk that they sell people and they buy it because they hope to make profit. it is a form of scam but it still doesn't match the Ponzi scheme definition.
Let's put things into perspective:
What is a Ponzi Scheme
https://www.investopedia.com/terms/p/ponzischeme.asp
As you can see in the definition of Ponzi, there's some sort of centralization, as opposed to Bitcoin wherein this is a free market. Also, there is a promise of high rates in ponzi, wherein Bitcoin doesn't promised anything and we all know that their is a big risk. Also, Bitcoin supply is limited as compare to Ponzi wherein if there's still people investing below then the money flow will continue.
What is a Ponzi Scheme
Quote
A Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors. The Ponzi scheme generates returns for older investors by acquiring new investors. This is similar to a pyramid scheme in that both are based on using new investors' funds to pay the earlier backers. For both Ponzi schemes and pyramid schemes, eventually there isn't enough money to go around, and the schemes unravel.
https://www.investopedia.com/terms/p/ponzischeme.asp
As you can see in the definition of Ponzi, there's some sort of centralization, as opposed to Bitcoin wherein this is a free market. Also, there is a promise of high rates in ponzi, wherein Bitcoin doesn't promised anything and we all know that their is a big risk. Also, Bitcoin supply is limited as compare to Ponzi wherein if there's still people investing below then the money flow will continue.
I definitely think cryptocurrency is not a ponzi although there are plenty of coins that have been or are. Bitconnect for example, that was a very successful ponzi but bitcoin i think is an honest cryptocurrency in the hopes of trying to improve the financial system. I think blockchain technology will definitely become integrated in our everyday banking in the future or at least until something even more secure comes along. I am looking forward to see where crypto and blockchain lead us.
what if the whole idea of blockchain and cryptocurrency is just one giant Ponzi Scheme?
What if you read some articles if what is the definition cryptocurrency and a Ponzi.A Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors. The Ponzi scheme generates returns for older investors by acquiring new investors. This is similar to a pyramid scheme in that both are based on using new investors' funds to pay the earlier backers.
With that definition, you can then know if crypto is a Ponzi- Crypto never promises that anyone can get $$$$ in 1 month or particular time once you start investing
- There's no referral thing that will give someone an xxx commision once he/she was invited and start earning crypto.
being volatile doesn't mean a Ponzi scheme i suggest reading the definition of it first: https://en.wikipedia.org/wiki/Ponzi_scheme
as for thousands of shitcoins that are created in short periods of time, that still doesn't mean Ponzi scheme. it is just creation of useless junk that they sell people and they buy it because they hope to make profit. it is a form of scam but it still doesn't match the Ponzi scheme definition.
as for thousands of shitcoins that are created in short periods of time, that still doesn't mean Ponzi scheme. it is just creation of useless junk that they sell people and they buy it because they hope to make profit. it is a form of scam but it still doesn't match the Ponzi scheme definition.
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... 
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