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Topic: Understanding the Ponzi Narrative - page 6. (Read 942 times)

legendary
Activity: 2268
Merit: 18775
December 14, 2021, 02:58:45 PM
#4
A Ponzi scheme is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors.
Early investors are not paid profits from recent investors. Any investors can take profits from any other investor by trading at the right time.

The scheme leads victims to believe that profits are coming from legitimate business activity
Satoshi never told anyone that they were going to make a profit at any time, and indeed, many early investors lost money via electricity and hardware costs mining an asset which was worth nothing at the time.

and they remain unaware that other investors are the source of funds.
There is no secrecy at all about what gives Bitcoin value or how the market is pricing it at any given time.

People compare bitcoin to a Ponzi scheme because the price increases when more money flows into the underlying asset.
This is a pointless definition. The value of anything increases when more money flows in to the thing in question. Property, stocks, shares, bitcoin, gold, art, oil, wheat, cows, onions, you name it.
copper member
Activity: 2142
Merit: 1305
Limited in number. Limitless in potential.
December 14, 2021, 02:57:11 PM
#3
Bitcoin doesn't have any referral/affiliate to attract people, it doesnt promise  anything, and doesnt promise that your money will just increase after you join in, it doesnt have fixed rate/percentage to get profit at a particular time/day/week/months, lastly, Bitcoin doesnt have a CEO, it's not a company.

 If I buy for X and sell for X+100 that 100 profit of mine came from another person who bought into the scheme after me. In the eyes of many, this is dangerously close to how Ponzi schemes generate value.
They should know how trading works, or say barter, where everything starts in the ancient.
legendary
Activity: 2352
Merit: 6089
bitcoindata.science
December 14, 2021, 02:50:25 PM
#2

What is the best argument against the Ponzi scheme narrative?

In what ways are Ponzi schemes different from bitcoin?

How do they generate value differently?


Bitcoin is not a ponzi, because it has some value. Let's see some things that makes bitocin valuable :

- It is limited. It is scarce.

- There are many use cases. For long people seek to create an internet money, a money which ia not controlled by a central authority and cannot be controlled by anyone. Now with bitocin you can send your money the way you want: permitionless,borderless..

- Ponzi schemes are centralized.one group of people control the scheme

Nowadays, you cannot even create bitcoin out of think Air. It costs thousands and thousands of dollars to mine one bitcoin.
sr. member
Activity: 288
Merit: 372
"Stop using proprietary software."
December 14, 2021, 02:41:09 PM
#1
One of the largest roadblocks I have in defending bitcoin (and cryptocurrency in general) is when people compare it to a Ponzi scheme.

There is plenty of bitcoin FUD that is easy to defend, but when people pull the Ponzi-card, that is when I begin to get agitated. This is because I don't have a sound argument to combat this claim.

For those who are not readily familiar; A Ponzi scheme is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. The scheme leads victims to believe that profits are coming from legitimate business activity, and they remain unaware that other investors are the source of funds.

People compare bitcoin to a Ponzi scheme because the price increases when more money flows into the underlying asset.  If I buy for X and sell for X+100 that 100 profit of mine came from another person who bought into the scheme after me. In the eyes of many, this is dangerously close to how Ponzi schemes generate value.

What is the best argument against the Ponzi scheme narrative?

In what ways are Ponzi schemes different from bitcoin?

How do they generate value differently?






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