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The entire crypto ecosystem is a ponzi

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Re: The entire crypto ecosystem is a ponzi

#71

Post by bb88 »

rosnd wrote: post #63
bb88 wrote: post #53

Earlier quoted context omitted.

Proclaiming that your intellectual opponents are ignorant without pointing out where they're wrong is a pretty common response from bitcoin maximalists these days.

Did you reply to the wrong comment? > Obvious enough to anyone who actually understands how bitcoin, or eth work, it does not fit the definition of a ponzi scheme. This is indeed obvious to anyone who knows what both of those things are. He very clearly explained where they got it wrong.

I don't believe I did. And he doesn't. The article is pretty clear in it's thesis and argumentation. Saying "you don't understand something" is not an argument.

Re: The entire crypto ecosystem is a ponzi

#72

Post by JumpCrisscross »

monero-xmr wrote: post #18

Cryptocurrency in its purest is money not issued or controlled by a government. Instead the supply inflation is controlled by transparent rules that are plain to see. “Protocol-based finance” vs. the existing government-based finance. Now there are all manner of divergences from the above paragraph. Coins that are totally controlled and issued by a small group or company. Black box rules rather than transparent. Ther…

> Does this make the entire industry a Ponzi?

No, the things you mentioned don’t. The argument the article made, that almost all the dollars and euros and yen crypto spits out come from investment, does.

That some people are buying drugs and financing terrorism or Pyongyang dilutes the Ponzi case. Those are examples of utility. But I’m not sure that’s the defence crypto was looking for.

Re: The entire crypto ecosystem is a ponzi

#74

Post by Trasmatta »

monero-xmr wrote: post #18

Cryptocurrency in its purest is money not issued or controlled by a government. Instead the supply inflation is controlled by transparent rules that are plain to see. “Protocol-based finance” vs. the existing government-based finance. Now there are all manner of divergences from the above paragraph. Coins that are totally controlled and issued by a small group or company. Black box rules rather than transparent. Ther…

Crypto doesn't even excel at buying drugs online. The fact that it's a permanent ledger of transactions means the purchase could be trivially linked to you by law enforcement, unless you jumped through all the necessary hoops to also anonymize it. Which most people don't.

Re: The entire crypto ecosystem is a ponzi

#76

Post by stickfigure »

JumpCrisscross wrote: post #51
lrvick wrote: post #49

Earlier quoted context omitted.

Early banks failed all the time. Give it another decade or so for regulation to start mandating accountability.

> give it another 100 years We have. We learned to ban what crypto does and put people promoting it in jail.

Eh? When did they ban cash?

Re: The entire crypto ecosystem is a ponzi

#78

Post by nikanj »

glennvtx wrote: post #16

This is a terrible argument, and clickbait. Obvious enough to anyone who actually understands how bitcoin, or eth work, it does not fit the definition of a ponzi scheme. Most tech stocks fit the definition better. Just because a few centralized banks, (FTX, centralized crypto exchanges are banks) have failed, means nothing, since the original idea of cryptocurrency was to do away with centralized institutions like th…

Most people buy cryptos to become rich. The only way that happens is more fiat entering the crypto space, providing exit liquidity.

Most tech stocks have a plausible explanation for future revenues, other than "the next investor will buy your chips for a higher price"

Re: The entire crypto ecosystem is a ponzi

#79

Post by lrvick »

ifeeltriedboss wrote: post #57
lrvick wrote: post #49

Earlier quoted context omitted.

Early banks failed all the time. Give it another decade or so for regulation to start mandating accountability.

Banks failed because they weren't regulated. If we regulate crypto, whole crypto premise is lost. So what's the point?

We only need to regulate crypto-banks that are holding other peoples assets.

We should not regulate those that wish to hold their own assets.

Re: The entire crypto ecosystem is a ponzi

#80

Post by jtchang »

> For stable funding, what you really need is retail deposits

I would disagree. For stable funding what you need is the belief that the underlying currency will continue to have value. The fact that BTC hasn't gone to zero means there are some people who still believe it has value.

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