Why isn't crypto currency considered a ponzi scheme?

Why isn't crypto currency considered a ponzi scheme?

Do you even know what a ponzi scheme is

>I have no fucking idea what a ponzi scheme is

do you?

> buy my worthless scam coin goy, you will be a millionaire!
> enough people but to give it value
> people who got in early sell high
> prices crash and bagholders relentlessly shill scamcoins so they can recoup their losses
textbook ponzi scheme

I hate it when every volatile economy is a ponzi scheme


wtf i hate economics now

What incentive is there to invest in shitcoins other than to flip them for profit?

I agree, however please think ahead 500 iterations of this situation.

>Shillers sell off their scamcoins
>New shills get scamcoins for shit price
>New shillers keep shilling their scamcoins to newer, soon to be shills
>Price continues to rise year after year due to newer shills always trying to make a quick buck on the newerest shiller wanna be's
>10 years later, dogecoin > BTC
Buy now boys, DOGECOIN GOING TO FUCKING MOON IN 2 MONTHS -> 900%+ GUARANTEED.

I think the level of separation here requires distinguishing whether it's a worthless goy scam or actually something of value.

It may seem worthless because it's not very tangible in a traditional sense. Not backed by gold or cash or anything. But, it does have value as a means of transactions. People like the fact it can be done anonymously and securely.

I think the fact there is a level of value prevents it from being a true ponzi. However, as with any stock or security, etc, the sensationalism can make it seem out of hand.

What BTC is doing right now is unprecedented. And my gut opinion is a crash of sorts is imminent. But that's just playing the game, not the game playing you.

ponzi scheme implies that those at the top make their money back and do the pre-shill, then those at the bottom do the scamming for those at the top.

the internet (and unfortunately, Veeky Forums in particular) allows one person to effectively become as many voices as they want to be. IP masking through tor and other sources allow a ponzi scheme to be more effective no matter the size of the pyramid, thanks to the way electronic trading of securities works.

I posted this picture before, I believe that this board is possibly one of the best teachers for the young in high school. learn that getting rich quick is retarded; we, collectively as a board must get rich smart.

>What incentive is there to invest in shitcoins other than to flip them for profit?
1. Long term storage, especially in case of a major collapse
2. Paying people for work (might work with freelance one day)

I think you are tip-toeing between the definitions of pyramid and ponzi

It is.

the only thing keeping all these shill coins up is bitcoin, and if people (FTC and IRS) keep noticing massive losses and gains due to shit coins, bitcoin is going to be regulated heavily.

the idea that bitcoin is strong is just an idea until there are services that offer money for bitcoin. tor ensures the market will remain for enthusiasts, but when bitcoin goes mainstream, what impression will it give when all the negative history is dug up?

Investing in BTC for these reasons makes sense, but the sheer variety of altcoins popping up every day without offering any real benefit (other than flipping) over BTC means that inevitably somewhere down the line the people holding these coins will be fucked.

I'm not too bright on scams so that's pretty likely, also at work on mobile

that's not what a ponzi scheme is you racist cuck

ur a salty bagholder aren't you :P

You are shill scamming retards. Or you sell actual goods on the black market.

Only by 50 year olds.

There really is no difference between Virtual currency and HYIP's.

They both are ponzi schemes.

If a few bitcoin millionaires decide to sell all his bitcoins... everyone loses out and bitcoin loses value. If people are constantly withdrawing bitcoins for cash...bitcoin loses value.The only way bitcoin retains value is by doing nothing with it and holding on to it.

If those in a HYIP don't constantly feed money back into it the HYIP it will crash and die. They all eventually crash and die and people lose money because of the promises the HYIP maker makes.

It's the same with Bitcoin. There is no difference. All it would take for everyone in bitcoin to be hurting is if a billionaire decides to exchange his bitcoins for cash.

You've only exposed the obvious, namely, that all value is notional.

The question is what is the essential difference between a ponzi scheme and bitcoin.

Please answer

Your example, "All it would take for everyone in bitcoin to be hurting is if a billionaire decides to exchange his bitcoins for cash."

Lets suppose that billionaire is a pure bitcoin billionaire. Bty marketcap is 28b, so he has 1/28th of the marketcap and essentially 1/28 of the coins, which at 16m coins comes to 571000 coins. If he dumps ALL the coins on the market, the price should decrease 1/28 of the current price per coin 1759.92: $1697.06

Now, the price of $1697.06 was reached yesterday and nobody literally gave a fuck

I hope this helps you understand Satoshi Nakamoto wasn't a retard.