Bitcoin and Ponzi Schemes

[polynesia]

Extremely well written (in terms of language) article in The Hindu op-ed over the weekend about Bitcoin. Nice to see proprietary articles appearing in the Indian press, rather than articles syndicated from Reuters.

Then again, his conclusion seems to be that Bitcoin is a ponzi scheme. 

Currency and some questions
http://www.thehindu.com/opinion/open-page/bitcoin-mystery-how-you-solve-a-puzzle-and-access-an-even-greater-puzzle/article6646814.ece

So the more exquisite the tulip bulbs, the greater the price paid for those: that led to the Tulip mania in 1637. The ultimate use of the bulb was for beautiful flowers; however the greater fool theory proved otherwise, till such a time that the cost of one tulip bulb became more than a professional’s annual salary. Who wanted the flowers from these bulbs? The arbitrary complex puzzles being solved to mine Bitcoins are useful to what end? The price of the tulips skyrocketed because of speculation in tulip futures. This was among people who really couldn’t tell a tulip from a daffodil.

The coins are not real, the puzzles are arbitrary, solving for their complexity gives results that are equally arbitrary. You are a miner in a software game, where each level gets progressively harder, and the game finishes at level 21 million.

[xkrishna]

thnx 4 putting this b4 us , u an indian ?

[Benson Samuel]

Extremely well written (in terms of language) article in The Hindu op-ed over the weekend about Bitcoin. Nice to see proprietary articles appearing in the Indian press, rather than articles syndicated from Reuters.

Then again, his conclusion seems to be that Bitcoin is a ponzi scheme.  

Currency and some questions
http://www.thehindu.com/opinion/open-page/bitcoin-mystery-how-you-solve-a-puzzle-and-access-an-even-greater-puzzle/article6646814.ece

So the more exquisite the tulip bulbs, the greater the price paid for those: that led to the Tulip mania in 1637. The ultimate use of the bulb was for beautiful flowers; however the greater fool theory proved otherwise, till such a time that the cost of one tulip bulb became more than a professional’s annual salary. Who wanted the flowers from these bulbs? The arbitrary complex puzzles being solved to mine Bitcoins are useful to what end? The price of the tulips skyrocketed because of speculation in tulip futures. This was among people who really couldn’t tell a tulip from a daffodil.

The coins are not real, the puzzles are arbitrary, solving for their complexity gives results that are equally arbitrary. You are a miner in a software game, where each level gets progressively harder, and the game finishes at level 21 million.

He did not mention the similarities between Tulips and Bitcoin did he?

 - Tulips could be sent across the globe over the internet.
 - Tulips were mathematically enforceable.
 - Tulips fixed a lot of problems that were well ahead of its time.
 - Other flowers tried to be Tulips as well.
 - Soo many more.

[Fernandez]

It may still end up as some kind of decentralized ponzi scheme

I don't think it is, and I can see why it angers the early adopters, but I can also understand the view of all those who are wary of Bitcoin.

[Equate]

There is no dearth of articles that begin with praising the technological prowess of blockchain but finally end up with calling it a ponzi scheme.

[Benson Samuel]

There is no dearth of articles that begin with praising the technological prowess of blockchain but finally end up with calling it a ponzi scheme.

I have seen this as well, this could be because it fits into today's definition of a ponzi as well.
Although this is one of the possible outcomes, so not sure why it is the only one bombarded.

[Benson Samuel]

Extremely well written (in terms of language) article in The Hindu op-ed over the weekend about Bitcoin. Nice to see proprietary articles appearing in the Indian press, rather than articles syndicated from Reuters.

Then again, his conclusion seems to be that Bitcoin is a ponzi scheme.  

Currency and some questions
http://www.thehindu.com/opinion/open-page/bitcoin-mystery-how-you-solve-a-puzzle-and-access-an-even-greater-puzzle/article6646814.ece

So the more exquisite the tulip bulbs, the greater the price paid for those: that led to the Tulip mania in 1637. The ultimate use of the bulb was for beautiful flowers; however the greater fool theory proved otherwise, till such a time that the cost of one tulip bulb became more than a professional’s annual salary. Who wanted the flowers from these bulbs? The arbitrary complex puzzles being solved to mine Bitcoins are useful to what end? The price of the tulips skyrocketed because of speculation in tulip futures. This was among people who really couldn’t tell a tulip from a daffodil.

The coins are not real, the puzzles are arbitrary, solving for their complexity gives results that are equally arbitrary. You are a miner in a software game, where each level gets progressively harder, and the game finishes at level 21 million.

He did not mention the similarities between Tulips and Bitcoin did he?

 - Tulips could be sent across the globe over the internet.
 - Tulips were mathematically enforceable.
 - Tulips fixed a lot of problems that were well ahead of its time.
 - Other flowers tried to be Tulips as well.
 - Soo many more.

Lol, The Hindu rejected my comment on their article page.
This is how news gets made thesedays.

[polynesia]

Lol, The Hindu rejected my comment on their article page.
This is how news gets made thesedays.

That is real sad. I had a lot of respect for The Hindu as a newspaper (in spite of their left-leaning editorials).

[Fernandez]

There is no dearth of articles that begin with praising the technological prowess of blockchain but finally end up with calling it a ponzi scheme.

I have seen this as well, this could be because it fits into today's definition of a ponzi as well.
Although this is one of the possible outcomes, so not sure why it is the only one bombarded.

Strictly speaking, it doesn't fit into the definition of ponzi at all. There is no central entity with the motivation to leave bagholders in the end.

It may turn out to be an outcome similar to a ponzi in the long run, lets see.

[Benson Samuel]

There is no dearth of articles that begin with praising the technological prowess of blockchain but finally end up with calling it a ponzi scheme.

I have seen this as well, this could be because it fits into today's definition of a ponzi as well.
Although this is one of the possible outcomes, so not sure why it is the only one bombarded.

Strictly speaking, it doesn't fit into the definition of ponzi at all. there is no central entity with the motivation to leave bagholders in the end.

It may turn out to be an outcome similar to a ponzi in the long run, lets see.

Yeah, thats a good point.

[polynesia]

Strictly speaking, it doesn't fit into the definition of ponzi at all. there is no central entity with the motivation to leave bagholders in the end.

It may turn out to be an outcome similar to a ponzi in the long run, lets see.

If the outcome is similar, it should be termed bubble.
Charles Ponzi would be turning in his grave looking at the way his name is being misused. 

[indiangrad]

Strictly speaking, it doesn't fit into the definition of ponzi at all. there is no central entity with the motivation to leave bagholders in the end.

It may turn out to be an outcome similar to a ponzi in the long run, lets see.

If the outcome is similar, it should be termed bubble.
Charles Ponzi would be turning in his grave looking at the way his name is being misused. 

Haha... That ways, a lot more things might fall under the ambit of Ponzi schemes!

[bineshb]

Hindu , rejected my comment as well on the Bit coin article by Bavesh Sharma .

[Benson Samuel]

Hindu , rejected my comment as well on the Bit coin article by Bavesh Sharma .

Really sad, but he did keep all the good comments up. We should flag this with them somewhere.

[polynesia]

Hindu , rejected my comment as well on the Bit coin article by Bavesh Sharma .

Really sad, but he did keep all the good comments up. We should flag this with them somewhere.

The Hindu has a dedicated email id for dealing with comments on the website.
Maybe we all should mail them about the rejection of comments.

http://www.thehindu.com/navigation/?type=static&page=contact


CONTACTS

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Letters to the Editor (Your complete mailing address is required):
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Readers' Editor:
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[Benson Samuel]

Hindu , rejected my comment as well on the Bit coin article by Bavesh Sharma .

Really sad, but he did keep all the good comments up. We should flag this with them somewhere.

The Hindu has a dedicated email id for dealing with comments on the website.
Maybe we all should mail them about the rejection of comments.

http://www.thehindu.com/navigation/?type=static&page=contact


CONTACTS

Please email, clearly mentioning the subject.

Letters to the Editor (Your complete mailing address is required):
letters@thehindu.co.in

Readers' Editor:
readerseditor@thehindu.co.in

Comments on the website:
web.thehindu@thehindu.co.in

I'll mail those today. With a link to this thread.

[polynesia]

I'll mail those today. With a link to this thread.

Did you get a reply from them, by any chance?

[Benson Samuel]

I'll mail those today. With a link to this thread.

Did you get a reply from them, by any chance?

Have not had a second to breathe. Doubt if I will be able to address this on time.

[Fernandez]

I'll mail those today. With a link to this thread.

Did you get a reply from them, by any chance?

Have not had a second to breathe. Doubt if I will be able to address this on time.

I don't think its bad. Bitcoin is hardly known here and any news, even negative ones, puts in into public consciousness. Besides, a negative news would make them wary and that is how it should be. Bitcoin is extremely volatile so anybody investing should do with utmost caution.

[polynesia]

I don't think its bad. Bitcoin is hardly known here and any news, even negative ones, puts in into public consciousness. Besides, a negative news would make them wary and that is how it should be. Bitcoin is extremely volatile so anybody investing should do with utmost caution.

Yup, that is true.
There is no such thing as bad publicity.