The Real Reason China Banned Exchanges? Cryptocurrency is a Ponzi Scheme

[nolimitnp]

First, I am NOT saying cryptocurrency is worthless or useless, far from it, so get that idea out of your head. Second, if you don't understand exactly what a ponzi scheme is don't even bother reading any further. I want you to KNOW what a ponzi scheme is:

https://www.youtube.com/watch?v=jBGgHT2UT7o&t=18s

Or go to YouTube and search "What is a Ponzi scheme Moneyweek Investment Tutorials". The entire video just keep thinking Roger Ver, Roger Ver.

The overwhelming majority of Bitcoin in existence was obtained for essentially nothing by miners and early adopters for mere pennies. Roger Ver probably has 100,000. Until mid 2016, the price had remained mostly steady, although still volatile. In just the last year Bitcoins value has increased from $500 to almost $5000. But what is causing the price to rise so quickly to there incredible levels? You want to believe its because more people are entering the market, but that's not how it works. Cryptocurrency is unregulated, meaning it's completely possible for there not to be a market at all, but a market simulation. I'm telling you the market IS a simulation. People are seeing the consistent price increases in pretty much everything and don't want to miss out, so more and more people are buying in. We all have dreams of Bitcoin hitting $100,000 or higher. Then we've got people like Roger Ver, Jeff Berwick, Andreas M. Antonopoulos touting Bitcoin as the savior of humanity, which not only convinces more people to buy in, but also hold. And to be fair, maybe Berwick and Andreas are as naive as we are, but they were in early. This creates market liquidity. Meanwhile, they can sell their bitcoins obtained for mere pennies for ungodly profits. As long as the price continues to increase, people aren't converting back to fiat and new people will continue to buy in. Like on this recent dip, I always hear "buy on the dips". Suckers!! At some point, the "market" will decrease significantly causing millions of people to sell and attempt to convert back to fiat. But there won't be any liquidity left as the original investors have been cashing out. New investors giving their money to old investors. It's a classic ponzi scheme, the largest in history.

So you have a $1,000,000 portfolio and understand it's a ponzi scheme. Oh shit, time to sell!! Well, good luck. Coinbase withdrawal limit is only $10k per day. There just isn't an easy way to convert large amounts, a fact that is always overlooked. The fact of the matter is most people have already lost most of their money. They just don't know it yet.

Poloniex updated their ToS to include the inability to be involved in class action lawsuits the day before Bitcoin forked. Why, coincidence? If you went to sleep with 1 BTC @ $2800, you woke up with 1 BTC @ $2800 and 1 BCH @ $400. $400 of "free money". From where? Coinbase, one of the few exchanges that allows conversion back to fiat, refused to release their customers BCH until January. Why so long? Because that $400 doesn't exist, they don't want anyone selling, for obvious reasons. Roger Ver probably has 100,000 BTC, so he had a $40,000,000 pay day, just for owning it. And you better believe he's already cashed out. But have any of you? Poloniex refused to release their BCH until August 14th, my best guess being they were waiting for someone to question where the $400 came from. Seriously, am I the only one questioning it? We dodged a bullet. And remember, that $400 from nowhere is also sloshing around in other cryptocurrencies. Ethereum will fork not once, but twice the end of this month. Why twice? Knowing what you know now about Bitcoin Cash, makes a little more sense doesn't it. Do you see anything wrong with my logic?

Roger Ver has parts in Bitpay, BitStamp, Kraken, Shapeshift, Purse, Ripple...everything Bitcoin. He's, well, Bitcoin Jesus. But he'd be prosecuted and hung by his balls, right? Well, not exactly.

https://qz.com/221598/marriott-is-helping-bitcoin-jesus-sell-cheap-citizenship-in-the-caribbean/

The only reason I know is because stole $17k that would be $250k today from me and I've been trying to prove it ever since. Yeah I went a little bigger, huh? We've been had fellas. Sure, laugh, you better pray I'm wrong. I know what I saw on the Poloniex exchange. It's all fake. China is on to it and that is the reason they have banned exchanges.

BTC: 1NHmYxrnxiBkGjhEed3VPso3oY9mnbuqSx
ETH: 0xb6F4a3974Da40Ba92377bF8E61C3E8323f1ba326

We still have until at least the Ethereum fork, unless word gets out sooner.

[Ucy]

My only problem with crypto is the ability to fork and produce lots of money from nowhere - otherwise it is perfect for me.. man, I hate that practice, wish they could find ways to address it . We don't want crypto to  become another fiat. All "Regulated" Governments constantly print trillions out of nowhere. Crypto must avoid copying the "governments" by all means.

[MoonIsBlue]

Didn't know about st. kitts but what point are you exactly trying to make other than we supposedly get a ''new elite'' but instead of banking it will be crypto.
Honestly fiat isn't exactly worth anything more than crypto, it's just the believe in these currencies that gives it is value. Expecting we can get goods and services in return for a note, coin or a byte.

If you really want to be save during all this and you're expecting the worse you're better off just hodling gold. I would be hodling gold/silver way rather than crypto or fiat.

You don't think the same happens on wall street? How many people invest and lose their money in DOW, AEX or other baskets. It's always a small group of people making money over the back of others. the whole financial institution is a ponzi scheme. Society is a ponzi scheme, we always make everyone compete and in a race of 10 people, 100 people or a million there's gonna be only 1 no. 1 and 1 no. 2 and 1 no. 3 etc.

I really like the idea of crypto aswell and I understand your concern but when talking about the negatives of these currencies fiat and crypto are just as worse. Crypto however is stimulated by an idealogy of sovereign money. Now I think all idealogy's are inherently uncorrect, the word wrong would be too strong.
And crypto cannot fully ever replace fiat, it ain't possible.

Fiat and crypto cannot last forever, nothing does. It seems that gold, silver and other metals are the only things that can guarantee any form of safety net when things go bad.
If you really forsee such a thing happening as you described where you get a run on the exchanges but there's no money then you're best off going into gold and silver cause it could skyrocket harder than bitcoin eve will.

Crypto creates money out of nowhere and so do the banks with fiat, in the end it's a large group getting F******* by a small group but people are to divided and selfish.

[techindo]

Think of the worst case scenario: China banned Google, Facebook & Twitter years ago. They're doing fine. And they ain't even decentralized.
this is just a game made in china , if you already know long china character you must already know the decision that you specify later.

[hubballi]

Think of the worst case scenario: China banned Google, Facebook & Twitter years ago. They're doing fine. And they ain't even decentralized.
this is just a game made in china , if you already know long china character you must already know the decision that you specify later.

I agree with your point, now china is not holding the major position to shake the market, china is trying fully to pull the bitcoin price down but other country are fully giving support and next week we will see the price going back to 4800 level

[Samarkand]

My only problem with crypto is the ability to fork and produce lots of money from nowhere - otherwise it is perfect for me.. man, I hate that practice, wish they could find ways to address it . We don't want crypto to  become another fiat. All "Regulated" Governments constantly print trillions out of nowhere. Crypto must avoid copying the "governments" by all means.

You have to differentiate between a hard fork based in a strong consensus and a contentious hard fork.

With a strong consensus the minority chain (measured by hashrate) dies off more or less immediately and the coins mined on it have no value and
therefore no money is produced out of thin air. However, with a contentious hard fork you get two working chains, which
produces the situation that you describe.

Besides, the ability to fork is a great thing. Hard forks genereally aren´t done for fun by developers and users, but rather to address criticial
security flaws or introduce innovation in some form. I can´t believe that you see this as a bug, this is a feature of cryptocurrencies!

[Red-Apple]

The overwhelming majority of Bitcoin in existence was obtained for essentially nothing by miners and early adopters for mere pennies.

first of all every single satoshi is obtained by miners. that is how bitcoin is programmed. it has never been like altcoins with premine.

secondly, it was not for nothing. it is for the work they have done. the so called "CPU power" they spent on bitcoin for proving us with proof of work. that warrants the payment they receive.

and as for early adopters, you can't really blame someone for seeing the potential before you did. it is like talking about early investors in Apple when they bought the shares for ridiculously cheap prices!

Until mid 2016, the price had remained mostly steady, although still volatile. In just the last year Bitcoins value has increased from $500 to almost $5000.

it has never been steady. from day one high volatility is a part of bitcoin. the rises of 10x from $0.1 to $1 or $1 to $10 or the huge bubble of $2 are the things you have forgotten to check on the charts. and they seem lost to you now.

But what is causing the price to rise so quickly to there incredible levels?

adoption bro, adoption.
have you checked the media lately? they are talking about bitcoin nonstop. countries are now calling bitcoin "a legal way of payment" or a "legal currency". don't you think that is more than enough for this "incredible levels" and more?

....but a market simulation. .... more and more people are buying in.

haha, you just contradicted yourself

... people aren't converting back to fiat ...

how would you know?
have you seen my bank account before i started with bitcoin and compared it with now?
how do you think price goes down each time there is a rise? that is people selling. those red candles on the charts after a couple of big green ones are us selling to get the money out and then buy back at the bottom again with more profit or take some money out and invest back the principle.

the fact that you don't understand how the market works and the fact that you have never seen any other market that has gone up to $250,000 (yes it is happening in real world if you get out of the basement) doesn't mean they are impossible. it means your vision is limited.

[Xavofat]

Second, if you don't understand exactly what a ponzi scheme is don't even bother reading any further.

Ponzi scheme
ˈpɒnzi/Submit
noun
a form of fraud in which belief in the success of a non-existent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors.

To clarify for you:  Bitcoin is not an enterprise, nor an investment program, nor does it pay returns, nor do people actually get "paid" returns - they just hold an asset that increases in value.

Bitcoin holds no characteristics of a Ponzi scheme.  By your logic, gold is a Ponzi scheme, but it simply isn't.

Then we've got people like Roger Ver, Jeff Berwick, Andreas M. Antonopoulos touting Bitcoin as the savior of humanity, which not only convinces more people to buy in, but also hold.

You're right.  They're private individuals encouraging people to hold an asset class.

So if someone promotes buying gold as a safe haven, does that make gold a Ponzi scheme?
It doesn't matter if the price is fueled by people buying and holding or by market manipulation.  You simply do not understand the basic meaning of a Ponzi scheme.

[Eric Cartman]

China didn1't banned cryptos and cryptocurrency is not a ponzy

Next topic

[matuson]

It seems to me that bitcoin has all the hallmarks of a Ponzi scheme. Any currency must feed production. Then she is growing and developing. In the case of bitcoin, we see only speculative capital. Its price grows only by a constant influx of money.

[bitcoincidence]

It's not a PONZI scheme it's a PRYRAMID scheme.  

[sekapai]

Governments and  banks are BIGGEST scam. They printed paper and called it money and a push the society to use it.

Bitcoin is freedom and it was spreading by mining with Proof of work and that was very fair all people over the world.

Now the hundred of years scammers is called thier new competitor as scam..just wait and see who will win.

[xdev]

It is a market that needs government guidance and regulations. Why do you think big guns over at Twitter just kept spreading the news about China ban without even half of them questioning anything? Because they know that the fake news will spread panic among weak hands and that the prices will fall temporarily which means that these people can continue to buy cheap coins and keep increasing their wealth.

Without regulations you will see alot more scam coins and alot more greedy people joining the community in hopes of increasing their wealth and spreading panic among investors.

[European Central Bank]

the reason china is cracking down is because they're determined to retain control of their population's money. they ended bitcoin's use as a currency in 2014 just as they did for qq coin and others in the past.

anyone throwing the word ponzi around is a worthless moron.

[audaciousbeing]

the reason china is cracking down is because they're determined to retain control of their population's money. they ended bitcoin's use as a currency in 2014 just as they did for qq coin and others in the past.

anyone throwing the word ponzi around is a worthless moron.

This is something I equally share and I must say after I have read the entire episode of what Op has said, the last part of the statement shows that he is not being objective because if not because of the alleged amount stolen from him, then he will be good with everything that is going on and would equally be counting his blessing about entering the bitcoin industry so early. Or what other explanation would he give to a 17k worth of bitcoin turning into over 250k worth in short period of time. He also went further to post his address to show he still believes in bitcoin and Roger that's another height of insinceirty in what he is preaching.

[alyssa85]

Well, given that the Chinese arn't allowed to actually buy or sell goods and services with bitcoin, for them it is just a speculative token. So i guess from their point of view it's a ponzi scheme.

[techindo]

Think of the worst case scenario: China banned Google, Facebook & Twitter years ago. They're doing fine. And they ain't even decentralized.
this is just a game made in china , if you already know long china character you must already know the decision that you specify later.

I agree with your point, now china is not holding the major position to shake the market, china is trying fully to pull the bitcoin price down but other country are fully giving support and next week we will see the price going back to 4800 level

we'll see later, surely our guess is true , china wants full power in cryptocurrency, but their way is easy to guess. people who are new to cryptocurrency will surely panic about this news , if people who know cryptocurrency more than 2-3 years must respond to normal and take advantage of this good moment to buy back Bitcoin.

[RamBahadur.Gurung]

China didn1't banned cryptos and cryptocurrency is not a ponzy

Next topic

100% correct. Those who are doubtful can visit the following links and verify themselves:

https://www.okcoin.cn/
https://exchange.btcc.com/
https://www.huobi.com/
https://www.chbtc.com/
https://www.c2cx.com/in/home
https://www.51szzc.com/
https://www.btctrade.com/

[GabrielKiara]

Not that is not a ponzi, I think because china is one big enough country to take part in cryptocurrency so they feel that if they banned bitcoin will have a big effect on the price, maybe its government try to monopolize bitcoin price, when bitcoin down they buy as much as possible, and when bitcoin price rise again they dump(maybe). but who knows? only the Chinese government and GOD knows, chinese is smart but also cunning. that is my opinion

[Kencha77]

They want to build a "great wall" to anything that may disrupt the current system in their country