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Cryptocurrency Is a Giant Ponzi Scheme

jacobinmag.com

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Re: Cryptocurrency Is a Giant Ponzi Scheme

#11

Post by dorena »

codyb wrote: post #9
robcohen wrote: post #4

Same arguments from both sides, different day. So tired of the self-righteousness of both sides. The reality is that there are use-cases that are useful today with crypto. The reality is also that the vast majority of money in crypto is there for speculative reasons, not fundamental value. That's fine, it's a bet, stop caring about where people put there money. If you don't want to make a speculative bet, then don't.…

Yea, cause what could go wrong allowing the uninformed to “invest” their savings into gigantic, unregulated ponzi schemes with no recourse for when things go south? Definitely zero issues with shit like that in the past, that’s for sure.

Hahahahaha, people try ponzi schemes in different forms every 50 years or so and it always makes few sketchy people rich and ruins a ton of idiots :D

Re: Cryptocurrency Is a Giant Ponzi Scheme

#13

Post by dqpb »

prepend wrote: post #7
robcohen wrote: post #4

Same arguments from both sides, different day. So tired of the self-righteousness of both sides. The reality is that there are use-cases that are useful today with crypto. The reality is also that the vast majority of money in crypto is there for speculative reasons, not fundamental value. That's fine, it's a bet, stop caring about where people put there money. If you don't want to make a speculative bet, then don't.…

I don’t think there are two sides. I don’t think I’m self-righteous when I say that the use cases for crypto just aren’t there yet as they require a non-speculative environment to be viable. I like the idea of smart contracts and general ledger. It’s useful for buying things in theory. But at $10+ for a transaction fee that’s impossible. I’ve been waiting over 10 years. I think this is pragmatic. And I don’t think it…

> But at $10+ for a transaction fee that’s impossible

Algorand transaction fees are a fraction of a cent.

Re: Cryptocurrency Is a Giant Ponzi Scheme

#15

Post by Trumpi »

Bitcoin was meant to be fiat money, but one without any central bank. Instead, it is being treated as a financial instrument where you make an "investment" and you can buy almost nothing with it.

If you're being sold Bitcoin or any other crypto as an "investment" where you might receive a "return", you're participating in a Ponzi scam.

If you're buying crypto so that you can use it to make a payment (e.g. Lightning payment to your favourite podcaster, or buying a pizza), then ok carry on.

Re: Cryptocurrency Is a Giant Ponzi Scheme

#16

Post by codyb »

dorena wrote: post #11
codyb wrote: post #9

Earlier quoted context omitted.

Yea, cause what could go wrong allowing the uninformed to “invest” their savings into gigantic, unregulated ponzi schemes with no recourse for when things go south? Definitely zero issues with shit like that in the past, that’s for sure.

Hahahahaha, people try ponzi schemes in different forms every 50 years or so and it always makes few sketchy people rich and ruins a ton of idiots :D

As long as we Madoff well right? ;-)

Re: Cryptocurrency Is a Giant Ponzi Scheme

#17

Post by eklavya »

aww_dang wrote: post #10

Even if I were to accept all of the fearful arguments against cryptocurrency, a prohibition of cryptocurrency would still be the greater evil in my view. Even if it is 'irrational' as described by some behavioral economists, how can we accept that the behavioral economist who is accusing the consumer of irrationality is himself entirely rational. The premise is nonsensical in my view. Differing actors employ their in…

You made a whole lot of sense, almost as much as cryptocurrency :)

Re: Cryptocurrency Is a Giant Ponzi Scheme

#18

Post by prepend »

dqpb wrote: post #13
prepend wrote: post #7

Earlier quoted context omitted.

I don’t think there are two sides. I don’t think I’m self-righteous when I say that the use cases for crypto just aren’t there yet as they require a non-speculative environment to be viable. I like the idea of smart contracts and general ledger. It’s useful for buying things in theory. But at $10+ for a transaction fee that’s impossible. I’ve been waiting over 10 years. I think this is pragmatic. And I don’t think it…

> But at $10+ for a transaction fee that’s impossible Algorand transaction fees are a fraction of a cent.

That’s great news, but the major projects like BiCoin and Ethereum are super expensive to do transactions.

I hope Algorand takes off as micropayments are a really nice use case and I’d like to be able to use it.

Just simple stuff like sending $20 worth on a paper wallet to niblings for their birthday. I just want to stop using cash.

Re: Cryptocurrency Is a Giant Ponzi Scheme

#19

Post by TAKEMYMONEY »

The author makes the common mistake of conflating market manipulation with a Ponzi scheme.

This is unfortunate, because we've seen real Ponzi schemes that use crypto (Bitconnect, PlusToken, Onecoin) and it makes it harder to talk about them when "Ponzi scheme" gets so watered down.

Re: Cryptocurrency Is a Giant Ponzi Scheme

#20

Post by [deleted] »

sitkack wrote: post #3
Mountain_Skies wrote: post #2

Mostly but as long as you're not the one holding the last tulip, you can profit greatly. It does bother me to see how many young people are being taught it's an investment rather than a game of economic chicken. Then again, so much in our modern economy is that way that one can hardly blame them from not seeing the danger.

Most investments are Ponzi schemes including all forms of currency. I don't want to get into an argument about the short term investments and liquidity in the markets, bla bla bla. They could be tools, but they end up becoming the ends. Why?

[deleted]
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