Why do most people automatically think Bitcoin is a scam/ponzi scheme?

[Trongersoll]

It is a scam! heh j/k.  as to why people see it as a ponzi scheme, that is because everyone says the value of the coins will continuously go up. You buy your coins at this price, and then you sell them later to the next guy for more money. This depends on there always being someone later to give you your return, hence a ponzi scheme.

People are used to inflation, the value of your money always goes down. A currancy who's value continues to go up? Thats just crazy, can't be true, can't happen.

But, Bitcoin is unique in that it is both a currancy and a commodity with limited supply. So yeah, it's value can continue to go up, as long as people place value on it. As long as you can buy and sell things with it, it will have value.

[RodeoX]

I can't blame them for their initial reaction. It sounds to good to be true, and most things like that are to good to be true. I was suspicious at first. Once I read Satoshi's white paper I was like 

[Lethn]

If it wasn't open source then I would have been suspicious as well but when I saw it all in action and the websites that were popping up and how much it scared the media I was getting an Anarchist boner I think Trongersoll is right, people, including us have undergone some serious social engineering and Bitcoin is something that completely tears the neo-keynesian ideology we were taught in school to pieces.

It's a bit like when you see religious people get proved wrong with scientific fact.

[BorderBits]

Also,

[Alpaca Bob]

The bitcoin-ATM's are going to be huge in this aspect. Several people I know are suddenly starting to take bitcoin seriously now that ATM's are rolling out. If it comes out of an ATM, it must be real money, right?

[Cudahuda]

Its "too good to be true" and most people trying to "sell" someone on something financial are used to various unsound investment schemes.

[smoothie]

People are generally quick to make comments before reading into something first. I'm glad I never claimed as to be a scam from day 1 when I was introduced to it.

[BitAddict]

Because Bitcoin violates the law of "too good to be true".    

Exactly! I was going to write the same
99% of the time if is too good to be true... it is scam/ponzi. But this time where in the 1%

Also for new users is hard to learn about bitcoin, in the future with more development it will be different.

[saif313]

Because Bitcoin violates the law of "too good to be true".    

Exactly! I was going to write the same
99% of the time if is too good to be true... it is scam/ponzi. But this time where in the 1%

Also for new users is hard to learn about bitcoin, in the future with more development it will be different.

agree +2 because its going to be more develop then may be some more reliable for newbies

[Pumpkin]

Extremely valuable and interesting thread, thanks for everyone!

I will mostly repeat other people, but here's my point:

I don't talk about bitcoin as something that will earn people money. I talk about morals and how fiat currency is wrong and bitcoin could be the solution. Bitcoin is extremely risky, but it's an attempt to escape the corrupt system and is worth the risk and some small personal financial sacrifice.

No way people will think bitcoin is a scam when you describe it as something that will lose them USD. Sell USD and buy bitcoin because it's the right thing to do, not because you want more USD.

"I have converted my savings into bitcoin, because fiat currency system is immoral and corrupt. Bitcoin could save the world - it just needs some help!" - People might think I'm an idiot, but they will not think I'm scamming them.

P.S. Oh and for the love of God, don't talk about mining unless they explicitly ask about it first.

[BitcoinProfi]

Because Bitcoin violates the law of "too good to be true".    

Exactly! I was going to write the same
99% of the time if is too good to be true... it is scam/ponzi. But this time where in the 1%

Also for new users is hard to learn about bitcoin, in the future with more development it will be different.

agree +2 because its going to be more develop then may be some more reliable for newbies

Why hard to learn? There are enough sites that explain how it works

[b!z]

They obviously do not know what Bitcoin is and what a Ponzi scheme is.

[Trongersoll]

Because average IQ is about 100 and half of the people are below that.

Only dumb people say that.

The truth that everyone else seems to be skirting around. Lol

Actually, I've always found the "50% of the population has a below average IQ" statement to be obnoxious and made by people who were mostly full of themselves although it was for them most part unwarranted. people forget that IQ is a Bell Curve so most of those falling below average are marginally so.

[ronimacarroni]

I tried explaining bitcoins to my family.
They said what if the owner decides to pull the plug.
I'm not wait, it doesn't work like that, the bitcoins are already in circulation
And they said well can't the guy in charge do whatever he wants with the program?
And I'm like, well he can change the protocol, but...
Then they went on why somebody would want to use bitcoins instead of money and so on...
Ugh someone should write a pocket book or something about it to save people the head ache.

[lassdas]

And I'm like, well he can change the protocol, but...

You should have been like "there is no owner/guy in charge!" 

[BorderBits]

Because average IQ is about 100 and half of the people are below that.

Only dumb people say that.

The truth that everyone else seems to be skirting around. Lol

Because people who shovel their money into 7% weekly returns, non-existent ASIC pre-orders, and who believe a proof of concept provides a realistic platform for a world economy are obviously the smart ones.  Holy shit, the delusions of this community are amazing(ly fucking stupid). 

[marcotheminer]

Because Bitcoin violates the law of "too good to be true".   

Yup.
5 cents fee, instant global transactions?

As well as FREE MONEY FROM FAUCETS? I mean what the?

[Boussac]

I tried explaining bitcoins to my family.
They said what if the owner decides to pull the plug.
I'm not wait, it doesn't work like that, the bitcoins are already in circulation
And they said well can't the guy in charge do whatever he wants with the program?
And I'm like, well he can change the protocol, but...
Then they went on why somebody would want to use bitcoins instead of money and so on...
Ugh someone should write a pocket book or something about it to save people the head ache

I find it useful to draw a parallel between bitcoin as an internet protocol and smtp (e-mail) or http (web).
No one can "pull the plug" on email or the web.
I always stress that bitcoin was first a protocol (described in Satoshi's paper), then a network formed around that protocol only then it can become a currency like any other currency, except it's not debt money.
People must understand they are using debt money (USD or EUR) to appreciate the benefits of bitcoin.

[ChrisJ]

Sell USD and buy bitcoin because it's the right thing to do, not because you want more USD.
...
P.S. Oh and for the love of God, don't talk about mining unless they explicitly ask about it first.

^^^It's all about this^^^

I can't stand the dollar junkies. Snorting that crap, telling themselves how all their fears will go away if only they had more of them. They don't even want dollars, they want the freedom that they (apparently) buy. They only think they want dollars because the law tells them that and they have to weave a story about how it's really their choice because the truth is too humiliating for them to stand.

Why give something that kind of power of you? Seriously.

[Gabi]

I tried explaining bitcoins to my family.
They said what if the owner decides to pull the plug.
I'm not wait, it doesn't work like that, the bitcoins are already in circulation
And they said well can't the guy in charge do whatever he wants with the program?
And I'm like, well he can change the protocol, but...
Then they went on why somebody would want to use bitcoins instead of money and so on...
Ugh someone should write a pocket book or something about it to save people the head ache.

I wonder how you "tried" to explain it, probably in the wrong way. no wonder that it ends up like that

"he can change the protocol" yeah sure