sentiment (OP)
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January 14, 2014, 05:56:19 PM |
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A well known financial market commentator claims that bitcoin is a Ponzi scheme. I've posted about this on my blog: http://paulmathersblog.wordpress.com/2013/12/12/bitcoin-ftw/It was an opportunity to speak my mind about what I believe is actually the biggest Ponzi scheme of all, i.e. the incumbent financial system of most nations: Fractional Reserve Banking. There are age old discussions on the gold standard vs fiat currency. Crypto-currencies offering the first real alternative in centuries. None of these are perfect. Whereas fiat currency offers the ultimate flexibility, it is perishable, subject to massive manipulation and, oh, is of course a Ponzi scheme. The gold standard makes for an extremely stable inflation-less currency but is of course very constrained and inflexible. It'll be interesting to see where bitcoin/crypto-currencies take us. Being able to make fast and efficient anonymous payments, micro payments, globally payments stick out as obvious uses. One thing is for sure, they are here to stay.
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CoinBet
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January 14, 2014, 06:01:13 PM |
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It was an opportunity to speak my mind about what I believe is actually the biggest Ponzi scheme of all, i.e. the incumbent financial system of most nations: Fractional Reserve Banking.
Have to agree with you there... but still, the media and the detractors will never pass up an opportunity to find flaws with bitcoin, even if they aren't real. They love a good scare story. Combine their scare tactics with the fact that most people still don't understand bitcoin or how it works, and you have a perfect recipe for journalists and media outlets to circle jerk themselves to oblivion.
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eteo
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January 14, 2014, 06:07:13 PM |
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Ii ts a very big subject that cannot be discussed in the newbies section. I advise you to wait and write elsewhere in the forum. Here the targetgroup is less and "newbie". On the other hand its mind is more virgin to the idea of the cryptocurrency.
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DannyHamilton
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January 14, 2014, 08:37:14 PM |
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Ii ts a very big subject that cannot be discussed in the newbies section. I advise you to wait and write elsewhere in the forum. Here the targetgroup is less and "newbie". On the other hand its mind is more virgin to the idea of the cryptocurrency.
You are incorrect. Discussions like this have been occurred MANY, Many, many times in the Newbies section. This is why the Newbies section exists, and why new users have to participate in the Newbies section before they are allowed to participate in the other sections. That way the other sections don't get cluttered up quite as much with the same discussions occurring over, and over, and over hundreds of times.
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sentiment (OP)
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January 15, 2014, 11:20:52 AM |
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DH - Personally, I couldn't find anything similar to this subject having searched the forums. Got any examples?
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melvster
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January 15, 2014, 11:28:17 AM |
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A well known financial market commentator claims that bitcoin is a Ponzi scheme. I've posted about this on my blog: http://paulmathersblog.wordpress.com/2013/12/12/bitcoin-ftw/It was an opportunity to speak my mind about what I believe is actually the biggest Ponzi scheme of all, i.e. the incumbent financial system of most nations: Fractional Reserve Banking. There are age old discussions on the gold standard vs fiat currency. Crypto-currencies offering the first real alternative in centuries. None of these are perfect. Whereas fiat currency offers the ultimate flexibility, it is perishable, subject to massive manipulation and, oh, is of course a Ponzi scheme. The gold standard makes for an extremely stable inflation-less currency but is of course very constrained and inflexible. It'll be interesting to see where bitcoin/crypto-currencies take us. Being able to make fast and efficient anonymous payments, micro payments, globally payments stick out as obvious uses. One thing is for sure, they are here to stay. No, fractional reserve banking isnt a ponzi scheme, nor is the incumbent financial system. But any system can become fraudlent or even a ponzi scheme. Bitcoin is full reserve banking backed my mathematics. So, it competes quite well on the warehousing function of money, but less well on the network effect (ie spendability). Hopefully that's something that will improve with time tho.
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Cryptomoedas
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January 15, 2014, 11:34:16 AM |
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For sure u can have fractional banking system under bitcoin.
Bitcoin still a fiat currency and like all fiat currencies it can be multiplied using the checkbook money pratice, like regular banks does today.
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WorldCoiner
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January 15, 2014, 11:56:03 AM |
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The good thing at BTC is that you have a maximum amount of coins. This is not the case for the Fiat-Money-System, which inflates like hell every day.
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best2002
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January 15, 2014, 12:20:50 PM |
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GOOD!!!!!! ![Grin](https://bitcointalk.org/Smileys/default/grin.gif)
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melvster
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January 15, 2014, 02:35:20 PM |
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For sure u can have fractional banking system under bitcoin.
Bitcoin still a fiat currency and like all fiat currencies it can be multiplied using the checkbook money pratice, like regular banks does today.
Yes but that's off block. On the block chain you have full reserve banking. Since unlike central banking there's no barrier to entry to access the block chain this forces the fraction right down. In legacy banking the fraction (leverage) typically gets out of control causing crises, bail outs, bail ins etc. It's sort of catch 22. A currency becomes more valuable as its network effect increases. But as it's network effect increases it becomes more prone to greed and corruption. This is why a world currency is a bad idea. Unless that world currency is strongly resistant to human factors, like bitcoin is ...
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