Bitcoin Is a Ponzi
openblockchains.github.io
Bitcoin Is a Ponzi
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Re: Bitcoin Is a Ponzi
#2There are fair criticisms of BTC here. However the author is confused if he assumes that Austrian economists are not critical of BTC. Allowing Krugman to define what libertarian views are is suspect to say the least.
Re: Bitcoin Is a Ponzi
#3There are fair criticisms of BTC here. However the author is confused if he assumes that Austrian economists are not critical of BTC. Allowing Krugman to define what libertarian views are is suspect to say the least. https://mises.org/library/bitcoin-money-myth
As you surely know - the bitcoin fraudsters' use Austrian economics to make the bullshit to the max all sound like it is somehow backed by (economic) theory (and nobel laureates).
Mr Krugman is just one voice in the collected "Yes, Bitcoin is a Ponzi" articles. As you surely know - the most outspoken economist on the bitcoin investment fraud / bubble is Mr Rubini. See this US Sentate testimony, for example, https://bitsblocks.github.io/crypto-bubbles
Re: Bitcoin Is a Ponzi
#4There are fair criticisms of BTC here. However the author is confused if he assumes that Austrian economists are not critical of BTC. Allowing Krugman to define what libertarian views are is suspect to say the least. https://mises.org/library/bitcoin-money-myth
As you surely know - the bitcoin fraudsters' use Austrian economics to make the bullshit to the max all sound like it is somehow backed by (economic) theory (and nobel laureates). Mr Krugman is just one voice in the collected "Yes, Bitcoin is a Ponzi" articles. As you surely know - the most outspoken economist on the bitcoin investment fraud / bubble is Mr Rubini. See this US Sentate testimony, for example, https://b…
Yet in the next breath, many will claim (Marxist labor theory of value) the energy used in mining determines the value.
There is value in a medium of exchange if users agree upon those terms. HODLing isn't that.
To the extent that the medium of exchange is valued, it is because it would be more convenient, less costly, less regulated or otherwise useful. BTC's mining, fees and slow transaction speeds subtract utility. Instead of moving onto better technologies, maximalists retreat to the illogical digital gold arguments. Ironically the inefficiencies are defended as creating value.
Re: Bitcoin Is a Ponzi
#5This reads schizophrenically.
Re: Bitcoin Is a Ponzi
#6Criticizing Bitcoin investment for speculation rings hollow when the majority of equity investment is speculation. Very few people invest with the intention of never selling. The news has a daily ritual of reporting the rising and falling of stock prices.
Re: Bitcoin Is a Ponzi
#7Criticizing Bitcoin investment for speculation rings hollow when the majority of equity investment is speculation. Very few people invest with the intention of never selling. The news has a daily ritual of reporting the rising and falling of stock prices.
You can eat neither Bitcoin nor equities, but equities at least make things you can sell for food, even if they are overvalued. Yes, trading equities or bitcoin can both be speculation, but at least equities have an intrinsic use, that exists even if no one wants to buy them. Bitcoin without buyers is just a waste of energy.
Whether Bitcoin as investment makes more sense than gold is unclear to me (though gold does have some real-world needs; probably not sufficient to justify its value), but comparing to productive assets makes no sense to me.
Re: Bitcoin Is a Ponzi
#8Criticizing Bitcoin investment for speculation rings hollow when the majority of equity investment is speculation. Very few people invest with the intention of never selling. The news has a daily ritual of reporting the rising and falling of stock prices.
Well, when you buy shares, you buy a stake in the company, i.e. a share in the company's assets, which per se represent a value (and of course can be completely overvalued). When you buy precious metals, they also have an intrinsic value. What countervalue do you have when you buy Bitcoins?
Re: Bitcoin Is a Ponzi
#9Criticizing Bitcoin investment for speculation rings hollow when the majority of equity investment is speculation. Very few people invest with the intention of never selling. The news has a daily ritual of reporting the rising and falling of stock prices.
There is a passionate dislike of Peter Schiff within the BTC community. Grayscale, a BTC ETF launched a "drop gold" marketing campaign. Gold would be an example of exactly the kind of investment people buy and hold.
There are also dividend investors and critics of today's high valuations, buybacks, et cetera. Stocks are an interest in a company that in ideal terms should be creating value. Bitcoin is a medium of exchange at best. Even if you accept that it is a store of value, that is distinct from a company that turns profits.
I don't disagree that there are plenty of shenanigans going around, but nor do I accept that as excusing the problems with BTC.
Re: Bitcoin Is a Ponzi
#10The article does not contain many well founded arguments.
However, I'd like to ask this question: Is an asset price inflation a Ponzi scheme? In other words: Would Bitcoin critics describe a housing bubble in which many people suddenly start investing in real estate as a Ponzi scheme?
Then I would agree even as a HODLER.