>In September 2016 I paid Coinbase $1,222 for two BTCs, $611 each. Seven months later, in April 2017, they paid me back $2,490, which was $1,245 for each BTC. My profit before tax was $1,268, over 100% of the investment, in just seven months.
>Where did that profit come from? How can Coinbase pay me eight times more now than I paid them less than a year ago? Where did they get that cash?
>In a nutshell, I'm getting my investment and my profit from other people, who are paying Coinbase for my BTCs. If there were no demand, my entire investment would disappear and I would only have the BTC bits and bytes in my virtual wallet. I would lose my $1,222.
>Some recent articles call Bitcoin and other altcoins, like Etherium or Litecoin, Ponzi schemes, for example, The Rise of Cryptocurrency Ponzi Schemes in The Atlantic and Bitcoin passes $1,000 but only number that matters is zero in the Financial Times.
>Indeed, the key attribute of a pyramid scheme is right there: the product being sold has no value aside from the demand-generated one, just like Twitter stocks (it's a joke). Should we blame Bitcoin for that? I don't think so.
>I think that what Coinbase (and similar traders like CoinMama or CEX.io) are doing is definitely a pyramid and must be stopped by the government, sooner rather than later.
>Why the police are still closing their eyes to what Coinbase is doing, I simply can't understand. Maybe because NYSE and A16Z are among their long list of investors?
nobody cares about bitcoin as a currency. everyone wants to get rich quick
Charles Sullivan
This is the dumbest shit that read's like it's written by a boomer.
Austin Bennett
Exchanges. How do they work?
Camden Stewart
if i go on a stock exchange and buy a stock, is it the exchange thats selling it to me or are they selling me someone elses stock? is it a pozi scheme too??
man this board somethings holy fuck
Jacob Martinez
deluded. but already know that 95% on here are braindead
Samuel Sanders
Wait are you telling me when I click the sell button an actual person is buying stuff from me?
Jason Powell
This isn't entirely true. Third world shitholes with junk currency actually do want to use BTC as a currency.
BTC actually is a very good thing for the third world.
Ryan Carter
no it's a pyramid scheme
Ryan Anderson
Your really that retarded? You dont know how a fucking exchange works? Think about it... I used to sell silver and gold to a shop down the road. It doesnt matter when I sold it to them because they just sell it for USD right away anyways. So if you sell ur BTC at twice what you paid then the exchange can just sell the BTC right away and get the USD back.
How can anyone be this retarded to now understand how an exchange works this has to be a joke post...
Matthew Reed
And drug dealers.
And money launderers.
And asset hiders.
And all sorts of criminal activity.
Jordan Campbell
ikr, it has so much in common with money.
Kayden Bennett
This. BTC will save the poorest people of the world on average $150 BILLION a year on remittances alone!
Try harder BTFO no-coiner.
Xavier Ross
What kind of brainlet sells a bitcoin for under $10k?
Aiden Walker
he's right. everything is a game of hot potato. careful you end up burning your hands, anons
Cameron Allen
So because there are bad actors with it, we should have it banned? Those things are simply excuses that institutions with a vested interest in the current system use to shut down a competing better system.
Jace Myers
The absolute state of Veeky Forums.
Luke Scott
Stop being a fuck tard troll. BTC is more trackable than paper cash.
Chase Lopez
>pay for 20 yams from local market >thank you sir that will be 0.000565 btc plus 0.001 transaction fee
Cameron Green
>In a nutshell, I'm getting my investment and my profit from other people, who are paying Coinbase for my BTCs. If there were no demand, my entire investment would disappear and I would only have the BTC bits and bytes in my virtual wallet. I would lose my $1,222.
Uhhmm, yes sweetie. That's basically how ALL markets work: real estate, stocks, commodities, forex, you name it. The price is driven by supply and demand and if you're unfortunate enough to buy at the top you're gonna lose money every single time. Fuck off grandpa
Nathan White
My theory is the powers that be actually want BTC to succeed to become a one world currency. It's something that the Davos elite masterbate to. A single globalized digital currency that can be tracked to see who has what and who owes what that the people adopted willingly.
Colton Rivera
Holy fuck what is this person even doing in cryptocurrency in the first place?
Ian Johnson
You do understand that mobile devices are the central pieces of tech for Africans. Guess what BTC works on fucking phones.
Mason Ross
Damn you're dumb OP
Austin Gonzalez
>using a thin client means 0 fees
Connor Thomas
>doesn't understand how tx fees work
Dominic Gonzalez
seriously. holy crap OP are you really this dumb
Hunter Jackson
aaron russo used to talk about this before he was suicided over 10 years ago, they were debating on what they were going to call it.. they were thinking Amero to be like the euro... this was over 10+ years ago...
now we see bitcoins... and a "Monero"
not even making this shit up... can find it on google and youtube.
Gavin Nelson
So I got 10 FaceBook shares, after a two years I noticed that my share price trippled. WTF Where did they get this cash? Must be a ponzi sheme Good god, where these stupid people come from
Imagine what it must be like going through life being this fucking dumb.
Christian Brooks
it's ok because bitcoin will always go up forever as we are in an era of unlimited demand and the network effect has no top! hyperinflation by 2020, we're all gonna be RICH!
Angel Thomas
Monero is the word for coin in Esperanto.
Hunter Turner
The stock prices in most cases are related to the value of the company as they represent ownership.
What does Bitcoin represent? Well it only represents itself and has no value in itself. In fact the product that is bitcoin doesn't matter, it could be anything and that's why we see so many alt coins, including bitcoin forks. The only reason people care about bitcoin is that in theory it will go up because there will be a greater fool to buy it for more.
Gavin Rivera
Not really. If hyper inflation happens and fiat fails, bitcoin fails. The only benefit of bitcoin right now is that it's being over inflated in relation to fiat. Without fiat those who control physical assets have more reason to use a currency system that isn't in play, such as a no name meme coin, because they can get in at the bottom and make it relative to their ownership of goods as opposed to playing by arbitrary bitcoin valuations.
In short, bitcoin is already failed, but some may make decent money off the mania.
Hudson Brooks
Ok, so what caused those shares to go up?
Now what caused bitcoin to go up?
If you can answer these you will understand ownership of a company that provides goods and services as opposed to speculative commodities that function as a pyramid scheme. There's a reason you invest in companies but speculate on commodities, except most commodities have a use, bitcoin just exists and faith at best.
Lucas Lopez
>except most commodities have a use
What real practical uses do gold and silver faggot? and don't say electronics because that's simply not true, there much more abundant metals for that.
Adam Long
Actually, I agree with you, using gold or silver isn't a particularly good idea. That's why we no longer have a gold standard because it's an arbitrary commodity. It's also why holding all gold or all silver in comparison to investing in companies doesn't really pay off unless something screwy happens with the country of which you hold the currency. However, now that it's easier to hold shares in companies around the world, gold and silver are even less relevant as they only become very valuable if the world fails.
So what really separates Bitcoin from say gold and silver? Well, gold and silver have basically fallen to the wayside as we came to terms with gold stackers being prepper lunatics and most wealthy people holding small amounts as a potential fail safe, but tech mania is in full force and people are drawn to bitcoin as a result.
In short, both gold and bitcoin are stupid speculative commodities, but unlike bitcoin gold does have some minor industrial use while also being finite to some extent. If you think Bitcoin is finite, well you're also a bit silly as we see there's not BTC, BCC, BCH, and so on and so forth with Bitcoin being able to branch into more coins as needed with no real restriction. You might say well we do the same with other elements and minerals, sure but remember there are what a couple hundred elements in the universe? There are probably already a thousand plus different crypto coins and growing.
