Topic: The Biggest Myth about Cryptocurrencies (Read 337 times)

I wanted to reply to you for a few days now, but I keep forgetting. Gold is indeed a metal, but its value isn't exactly determined by its rarity because it's not the most rare metal. Its value is determined by depend and supply and based on people who want shiny gold stuff, a mentality built into the capitalistic system for decades now. See extravagantly expensive engagement rings, the most expensive the ring, the bigger the love, Valentine's Day, etc. are only a few examples that the gold industry has pushed to be portrayed as normal and expected from people.

Their major difference is that gold is tangible, while bitcoin isn't. That doesn't change the fact that its value is determined by demand and its limited supply, and as you've already noticed, investors have a different opinion than yours in order to determine that it's actually worth $60,000 as we speak.

That's not a source of profit. That's what one scheme participant gave to another. If Bob givs $60K to Alice that didn't came from a resource inside the Bitcoin system. That came from Bob's pocket. There's nothing within the system for Alice to profit from. The system just increased the number associated with Bob's address by 1 and decreased the number associated with Alice's address by 1. Hence, what the system does in recording the operation of a pyramid-style scheme and storing the record in the blockchain.

The source of profit for cryptocurrencies is buying low and selling high(which is the bull tactic), there's also the bear tactic- selling high and buying low. The bull and bear tactic are applied by the traders on all financial markets-stocks, commodities, FOREX, etc.
You can call it a pyramid scheme or a ponzi scheme, I don't care. If buying low and selling high is a pyramid scheme, then all the financial markets around the world(stocks, bonds, commodities, FOREX, etc.) are pyramid schemes. You might be right about this. Financial capitalism is a pyramid scheme. Crypto is no different than the traditional "casino capitalism", which was invented years before Bitcoin.

You can think or say whatever you want. I literally do not care. The whole OP boils down to a simple fact that the Bitcoin system has no source from which investors could profit. While traditional investment instruments do. You're mad because of that fact and that's why you created that nonsensical wall of text. In the last 20 years I have had thousands of discussions about various topics. I know very well how people like you function. I simply do not want to waste my time on you.

I haven't been paying attention to this thread and I don't know the arguments involved here--and I don't know who is arguing what, and why.

But I know that the poster who says "take your meds" or some similar crap is the same as that person saying, "I lost the argument and I have nothing more intelligent to say".

Dear JamesNZ,

You have reached a new low with your latest response. Accusing me of needing medical help is not only offensive, but it also shows a complete lack of respect for mental health issues.

I have had enough of your bullshit. You have made false accusations, resorted to personal attacks, and now you are trying to belittle me with baseless insults.

Fuck you and your condescending attitude. You are a fucking idiot who is too stubborn to admit when they are wrong. You are literally the worst kind of person to engage in a discussion with.

You need a medical help.

Dear JamesNZ,

Your response is nothing but a pathetic attempt to deflect from the fact that you have been proven wrong. You have resorted to personal attacks and baseless assumptions, rather than addressing the factual inaccuracies in your original post.

Furthermore, your accusation that I write "nonsensical walls of text" is not only false but also unfounded. I provided a well-reasoned and factual argument that challenges your misconceptions about cryptocurrencies. If you are unable to comprehend or refute my argument, that is not my problem.

I will not tolerate your condescending and dismissive attitude. If you continue to make false accusations and personal attacks, I will have no choice but to report you to the moderators.

There are many reasons to fear investing in Bitcoin. You say many are afraid to make this an investment because of rumors. You are absolutely right that many people spread many kinds of rumors about Bitcoin. Because of this, many people don't want to invest in it and lose interest in it. This is especially true for newbies. I don't know if you've seen it, but I've seen newcomers get blown away more than they've been well-reassured about it.
These become very dangerous for those who enter this sector. Because they are new here to learn, it is natural that they will only want to invest in Tarapitak coins if they are well assured.

Yet, it's crucial to grasp the market dynamics before investing in Bitcoin and other cryptocurrencies. We can confidently navigate the investment landscape and reassure new entrants by doing so.

Your cannot change the reality by denying it, by crying and wining, by using loaded language, and by misrepresenting my description of that reality. I understand that you're frustrated because my post demonstratrd that you are a participant of a pyramid-like scheme and not an investor.  But your response is pretty hilarious and pathetic. Try to accept reality instead of writing nonsensical walls of text.

Dear JamesNZ,

I was utterly appalled to read your post, which is riddled with misinformation and a complete lack of understanding about cryptocurrencies. Your blatant bias against this emerging technology and your failure to grasp its fundamental principles are both disappointing and unacceptable.

First, your claim that it is impossible to invest in cryptocurrencies is not only false but also demonstrates a fundamental misunderstanding of what cryptocurrencies are and how they work. Cryptocurrencies are digital assets that can be bought, sold, and traded on various platforms, just like stocks, real estate, and other investment instruments. They have value because people are willing to buy and use them, and their value can fluctuate based on market demand and other factors.

Furthermore, your argument that cryptocurrencies are not investment instruments because they do not generate revenue or equity is misguided and shows a lack of basic financial knowledge. Many investment instruments, such as gold and other precious metals, do not generate revenue or equity either, but they are still considered legitimate investment opportunities.

Your explanation of the sources of profit for stocks, real estate, and fiat currencies is also flawed and demonstrates a lack of understanding of basic economics. You claim that the source of profit for fiat currencies is debt, but this is only partially true. The value of fiat currencies is determined by a variety of factors, including government policies, economic indicators, and market demand.

Your description of cryptocurrencies as "numerical records of participation in pyramid-like schemes" is not only inaccurate but also offensive to the many legitimate projects and communities in the cryptocurrency space. Cryptocurrencies are built on blockchain technology, which is typically a decentralized and transparent ledger system that enables secure and transparent transactions. This means that the transaction data is usually distributed across a network of computers, rather than being controlled by a single entity, and that anyone can view the transaction history on the blockchain. However, it's important to note that while blockchain technology is often decentralized and transparent, there are some exceptions. For example, some private blockchains are centralized and not open to the public. However, in the context of cryptocurrencies, public blockchains are the norm.

Your argument that the 21 million limit on Bitcoin is arbitrary and meaningless is also incorrect. While it is true that the limit is an arbitrary number, it is a fundamental aspect of Bitcoin's design and is intended to prevent inflation and maintain the currency's value over time. However, it's important to note that many aspects of Bitcoin's design, such as the block size limit and the mining reward schedule, are also arbitrary and have been the subject of debate within the community.

In short, your post is a disgraceful display of ignorance and misinformation about cryptocurrencies. I strongly urge you to educate yourself on this topic and approach it with an open mind, rather than perpetuating harmful stereotypes and misconceptions.

I can't understand why it is said to be a pyramid, as we know, to get just 1 BTC, we have to try independently, not under demands, it's not like a pyramid scheme where the one at the top will be lucky, but in whatever Bitcoin we have, that's what we get if we want to get big. In my opinion, we have to save actively

How's gold different? It's simple. Gold is a metal not a numerical record. In gold people profit from its intrinsic value. On the other hand, from a numerical record associated with address of people in the Bitcoin system no one can profit. That record is just a way to track participation in a pyramid scheme. For instance, someone just gave $60,708 to a participant, and the Bitcoin system recorded this numerically, as explained in the opening post.  The first person invested in nothing. It just joined the pyramid scheme by giving money to the old scheme participant with the Bitcoin system recording this as +1/-1. +1/-1 is in no way comparable to gold.

You claim that with cryptocurrencies, there's no source of profit, activity, or actual value to invest in, but numerical records are similarly found in pyramid schemes. I'll ask you this: How is gold any different? Bitcoin is a currency that is considered an asset—a digital one—but still an asset that isn't that different from gold. How is gold's price determined? supply and demand, and also the monopoly schemes that take advantage of the gold supply in third-world countries such as Africa, depleting their resources. Yet, it's considered a great investment even though it doesn't produce any income or revenue.

I like the fact that your familiar with the business world and know the much you can about it’s business operandum or modules but, are you really serious right now, that having to invest or count Bitcoin investments to be a misconception largely based on terminology as Bitcoin isn’t invested in let alone, been profited from? Because, that’s what I get from the below quotes.


If your going to judge future coming developments and innovations by the definition of what was from a distant past, it would make it even hard for you to understand. Don’t forget the fact that, a lot in our world is in dynamics and as such, we now have digital assets, things not imagined over 2 decades again.

Sure, electricity or computer power is a resource - but that resource is what people throw away to join the pyramid scheme. It is not a resource inside the Bitcoin system that can be used as a source from which Bitcoin holders could profit. If you hold Bitcoin you don't have the right to a specific amount of electricity that someone is obligated to deliver you. There's neither electricity nor anything else inside the Bitcoin system that can be used as a resource from which Bitcoin holders could profit. So no one invested in Bitcoin. Bitcoin is just a way to record participation in a pyramid-like scheme.

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If you read the opening post carefully you can see that Bitcoin or any other crypto is not a pyramid scheme. A pyramid scheme is when you give money and stuff to people and then hope people will give you money and stuff back in the future. Bitcoin is just a numerical way to record your participation in that scheme and store the record in a decentralized database.

Computational power is a resource.
Electricity is a resource.
Online ledgers are resources.
Bitcoin is like a company, but without headquarters and a CEO. It's a decentralized entity, which is why so many people can't imagine how that's possible, yet it is.

Since you can invest in companies that protect and move data, you can also invest in bitcoin.
Since you can invest in companies that allow for fast international payments, you can invest in bitcoin.
Think about it for a moment and you'll come to the conclusion that bitcoin is in many ways similar to traditional investments.

The stuff that you refer to as myths in the crypto space are mostly as a result of Poor research , poor  understanding and rumors . The problem many people who pay too much attention to these so called crypto myths face is that they fail to do research on important things including security and end up jumping into investing in crypto. And unfortunately for a majority of them they end up investing in altcoins that are mostly pump and dump schemes and boom they lose all Thier money and say that crypto is scam.

The fact is people who depend on rumours as their source of information will hardly make progress in the crypto space. This is mainly because the crypto space and internet is full of lies and misleading information.

Speculation is a value, as evidenced by the fact that humans spend trillions of dollars on it every year, and this activity have been a core part of the human experience since history began.

All digital currencies are speculation instruments and as such they are valuable. You don't need to know any more than that.

You could perhaps make the argument that speculation doesn't "help anybody", but then again neither does most of what the modern world spends its resources on, e.g. entertainment, tasty food, recreation, and so forth. Humans are not animals that only do the exact actions necessary to survive.

As for what is "valuable" and "not valuable" the only proper answer to this question is, "whatever people find valuable". That answer isn't very satisfying for some people, but any attempt to answer it in a universal way inevitably leads to and endless list of edge cases and reductive arguments.

Almost all digital currencies are only investment instruments as they have no unique value beyond that. Exceptions are ultra-privacy enhanced cryptos like Monera, and non-blockchain digital currencies that are faster, cheaper and more private than credit cards like Haypenny.

But as we've seen with Bitcoin, investors don't need a speculation instrument to have any intrinsic value in order for it to be bid up past a trillion dollars in value. People value.. what they value.

Investing itself does not presuppose that there must be an intrinsic value of what we are investing in. It's just about putting money (or, figuratively speaking, various resources like effort and time, too) into something with an expectation of it paying off. If people buy Bitcoin and hold it, with an expectation that the price will increase in the future, that's investing. Sometimes people also invest in fiat, actually, by choosing to make their savings in something like the USD because of high inflation rate of local currency and a possibility of profiting relative to the local currency and the local market.
So I disagree with the op that it's impossible to invest in cryptos.