is Bitcoin a pyramid scheme?

[zakalwe]

Bitcoin is the opposite of a pyramid scheme from the point of view of Bitcoin miners. The Bitcoin protocol is designed like a cannibalistic arms race. Every additional miner prompts the protocol to increase the difficulty of mining. From a social point of view, Bitcoin is a pure market. The price of Bitcoins fluctuates based on market supply, demand, and perceived value.

[frank2018]

Indeed it is. But I cannot see the pyramiding structure you try to imply. How does it become a pyramiding scheme knowing that you are the one investing on it and not asking for your those under you. You cannot say a comparison without a distinct word equivalent to it.

[YuginKadoya]

Bitcoin is not a pyramid scheme, Well a pyramid scheme  is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products or services. As recruiting multiplies, recruiting becomes quickly impossible, while in bitcoin there is no need to recruit someone in order to profit, If you invest in bitcoin your money will grew over time when the value increases, But that is one part earning in it, But bitcoin is literally not made that way because this is really a currency that always fluctuates, And the given services was a secure storage and a fast transaction. don't lump it in a pyramiding scheme just because you can earn by investing with it.

[godzillarekt007]

Indeed it is. But I cannot see the pyramiding structure you try to imply. How does it become a pyramiding scheme knowing that you are the one investing on it and not asking for your those under you. You cannot say a comparison without a distinct word equivalent to it.

I think people get confused with making gains and ponzi schemes. Because you make more money by other people getting involved, they seemingly think this is a ponzi scheme. Pretty stupid because every capitlistic venture is exactly that, more people getting in makes the early investors rich. Most people are stupid, don't think like the average human.

[gentlemand]

No. It doesn't fit the criteria.

It does fit the greater fool theory and that's what 95% or more of people here are depending on. They only want to sell to someone else for more than they paid for it.

There may well come a point where it flips and anyone letting go of any of it is a greater fool than the person buying it.

[markj113]

Bitcoin is the opposite of a pyramid scheme from the point of view of Bitcoin miners. The Bitcoin protocol is designed like a cannibalistic arms race. Every additional miner prompts the protocol to increase the difficulty of mining. From a social point of view, Bitcoin is a pure market. The price of Bitcoins fluctuates based on market supply, demand, and perceived value.

I think the market is more manipulated than most people realise.

Exchange bots and a few large players dictate the price by creating fake supply/demand.

[Kprawn]

This --> perceived value

Bitcoin is as valuable as people perceive it to be, because it fulfil some need or some use case for them. A Ponzi scheme does

not fulfil some need, but rather provides unrealistic high returns on their investment. The use case is very important,

because it has more than one function for many people. 

[Hui8]

Bitcoin is the opposite of a pyramid scheme from the point of view of Bitcoin miners. The Bitcoin protocol is designed like a cannibalistic arms race. Every additional miner prompts the protocol to increase the difficulty of mining. From a social point of view, Bitcoin is a pure market. The price of Bitcoins fluctuates based on market supply, demand, and perceived value.

I read the question again and again to understand and recall how bitcoin actually works and tried to relate with it but its not even close to being the pyramid scheme. The crypto currency or bitcoin for instance is just price tagged algorithm which can be sent over the protocol from peer to peer and transmit the values. Does that even seem to be related to it? May be that is just the operation of bitcoin. Okay let's talk about the bitcoin earning and spreading ways. Is there any offer that satoshi levied that those who will get most of the people on board will have X percentage from the bitcoin market cap. I don't think so and neither of them trying to do so.

In any sense this is not valid statement at all.

[uszaty43]

Bitcoin is the opposite of a pyramid scheme from the point of view of Bitcoin miners. The Bitcoin protocol is designed like a cannibalistic arms race. Every additional miner prompts the protocol to increase the difficulty of mining. From a social point of view, Bitcoin is a pure market. The price of Bitcoins fluctuates based on market supply, demand, and perceived value.

The problem is that a lot of newbies think that bitcoin is just a pyramid scheme because other users need to buy in order to see the price increasing, but it just works like anything else. Like gold, silver, or any other shit asset.
came on people..

[LadyCoin]

Bitcoin is the opposite of a pyramid scheme from the point of view of Bitcoin miners. The Bitcoin protocol is designed like a cannibalistic arms race. Every additional miner prompts the protocol to increase the difficulty of mining. From a social point of view, Bitcoin is a pure market. The price of Bitcoins fluctuates based on market supply, demand, and perceived value.

Former US bank chief Wells Fargo Dick Kovacevich spoke of a bitcoin virtual currency. In fact, Kovacevich believes that bitcoin is a pyramid scheme like a ponzi scheme.
Kovacevich himself claimed not to see bitcoin as a financial crime. "There is no crime-related thing that happens.This is just a pyramid scheme, you bet that someone will buy it and some people right

[HasHe]

Bitcoin is the opposite of a pyramid scheme from the point of view of Bitcoin miners. The Bitcoin protocol is designed like a cannibalistic arms race. Every additional miner prompts the protocol to increase the difficulty of mining. From a social point of view, Bitcoin is a pure market. The price of Bitcoins fluctuates based on market supply, demand, and perceived value.

Its the same term which was used by the Russian president putin to accuse bitcoin.But whoever term it,its completely wrong.Here there is no need for anyone who has bitcoins to promote others to buy bitcoins to increase his income.Rather he could just hold his bitcoins and enjoy the price rise.

[macartem]

Some people who have nothing to do with bitcoin think so, and everyone else knows that this is not true

[FrueGreads]

Bitcoin is the opposite of a pyramid scheme from the point of view of Bitcoin miners. The Bitcoin protocol is designed like a cannibalistic arms race. Every additional miner prompts the protocol to increase the difficulty of mining. From a social point of view, Bitcoin is a pure market. The price of Bitcoins fluctuates based on market supply, demand, and perceived value.

I think the market is more manipulated than most people realise.

Exchange bots and a few large players dictate the price by creating fake supply/demand.

Well I can't really argue with that, and from what I've been watching lately I would say you are right. The thing is, bitcoin has real value, and price manipulation would become impossible to make if massive adoption takes place. Right now, bitcoin only has a use case for speculators since it's development is not finished, and can't be used for payments in a large scale. But that should change soon, with the deployment of the LN, that is already taking place. If merchants start adopting bitcoin, and people start using it, it's liquidity will increase and it's volatility will decrease because it will be much harder to make it's price move, since a lot of people would now own it, and hold it.

[onnz423]

Bitcoin cannot possibly be a pyramid scheme because old investors are not paid by new investors, there will never come a point when the growth rate cannot be sustained and the system collapses.

There is nothing remotely similar for the two systems.

[aoluain]

Bitcoin is the opposite of a pyramid scheme from the point of view of Bitcoin miners. The Bitcoin protocol is designed like a cannibalistic arms race. Every additional miner prompts the protocol to increase the difficulty of mining. From a social point of view, Bitcoin is a pure market. The price of Bitcoins fluctuates based on market supply, demand, and perceived value.

yup thats pretty much a good explanation.

I have heard people tell me that BTC is a pyramid scheme and it might
look like that to those who dont fully understand. The ones at the top
of the pyramid may look like those who were the early adopters.

Because the market is unregulated it can be manipulated but I would
have thought with over 16,000,000 coins in circulation it would be
difficult to directly manipulate by one person.?

[Washball]

Some people want to see bitcoin a pyramid scheme and there are others who want to scare mainstream investors off by calling it a pyramid scheme. But the price increase or decrease is a result from investors buying or selling bitcoin. It's just a matter of demand, like regular investment assets the price goes up or down due to the demand. Bitcoin has nothing to do with pyramid schemes.

[passioncrypto]

Bitcon is not a pyramid scheme. Bitcoin is a digital currency but users take it pyramid scheme as the price of bitcoin increases time to time. Truth is, it’s just like other currencies.

[jason.romano]

No. bitcoin doesn't relate to pyramid scheme. The growth rate fluctuates in bitcoin. it doesn't have stability where a fixed point can be get to become a pyramid scheme.

[loraalbert]

This is a rich imagination. but true to its meaning. Bitcoins are rotated from the top and bottom of the pyramid. in which the walls are investors and consumers. They will be the audience in this game if the bitcoin is adjusted in the other direction. It is a worshiped artifact and virtualization of technology.

[shawn995]

Bitcoin isn't a fraudulent business model, Well a fraudulent business model is a plan of action that enlisted people individuals by means of a guarantee of installments or administrations for selecting others into the plan, instead of providing ventures or offer of items or administrations. As enrolling duplicates, selecting turns out to be rapidly inconceivable, while in bitcoin there is no compelling reason to enlist somebody with a specific end goal to benefit, If you put resources into bitcoin your cash will developed after some time when the esteem increments, But that is one section gaining in it, But bitcoin is truly not made that way since this is extremely a money that dependably changes, And the given administrations was a safe stockpiling and a quick exchange. try not to irregularity it in a pyramiding plan since you can win by contributing with it.