Bitcoin - a financial pyramid: true or myth?

[harastvo]

If we talk about crypto-currencies in general, it will be more correct to immediately split bitcoin and all other crypto-currencies, the so-called altcoyins.

So, it can not be denied that many ICOs today are forms of financial pyramids.

However, this does not mean that absolutely all alternative crypto-currencies are a fraud. Some altcoyins have a very clear and transparent pricing model. And in fact today, in my opinion, such crypto-currencies as Ether, Dash, Ripple, Litecoin, NEM, Monero and others really create value, and their price is due not only to pure speculation.

As for bitcoin, the fantastic increase in its value in recent times, of course, does not cease to excite the minds of critics, but in reality it's quite simple with him.

The first and most obvious difference between bitcoin and the financial pyramid is that there is no central beneficiary. Theoretically, of course, there are very old wallets with a very large number of bitcoins, which in some sense can be considered such a beneficiary. However, there was no official central beneficiary, and without its presence the pyramid does not make sense.

The second important difference is in bitcoin with the growth of the user base and with the growth of downloaded money, the value grows, because in any economic system this value is directly related to the number of participants in this system. Moreover, given the fact that the volume of the economy is always proportional to the square of the number of participants, and not to the number itself, the value of bitcoin grows much faster than the user base grows, and it is not necessary to talk about inflating a bubble.

And, at last, one more factor is that at bitcoin there are no obligations to anyone. That is, bitcoin never promised anything to anyone, so bitcoin as a pyramid, in general, can not collapse. Bitcoin is only a financial protocol for making, validating and storing information about transactions among network members. The bitcoin code is publicly available, each participant can explore the logic of the entire network, and some participants can not just grab the bitcoins of other participants.

Given all of the above, I can conclude that bitcoin does not fall under the definition of the financial pyramid.

What do u think about what do you think about my thoughts? Do u agree that bitcoin is not a financial pyramid?

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[reflector]

If we talk about crypto-currencies in general, it will be more correct to immediately split bitcoin and all other crypto-currencies, the so-called altcoyins.

So, it can not be denied that many ICOs today are forms of financial pyramids.

However, this does not mean that absolutely all alternative crypto-currencies are a fraud. Some altcoyins have a very clear and transparent pricing model. And in fact today, in my opinion, such crypto-currencies as Ether, Dash, Ripple, Litecoin, NEM, Monero and others really create value, and their price is due not only to pure speculation.

As for bitcoin, the fantastic increase in its value in recent times, of course, does not cease to excite the minds of critics, but in reality it's quite simple with him.

The first and most obvious difference between bitcoin and the financial pyramid is that there is no central beneficiary. Theoretically, of course, there are very old wallets with a very large number of bitcoins, which in some sense can be considered such a beneficiary. However, there was no official central beneficiary, and without its presence the pyramid does not make sense.

The second important difference is in bitcoin with the growth of the user base and with the growth of downloaded money, the value grows, because in any economic system this value is directly related to the number of participants in this system. Moreover, given the fact that the volume of the economy is always proportional to the square of the number of participants, and not to the number itself, the value of bitcoin grows much faster than the user base grows, and it is not necessary to talk about inflating a bubble.

And, at last, one more factor is that at bitcoin there are no obligations to anyone. That is, bitcoin never promised anything to anyone, so bitcoin as a pyramid, in general, can not collapse. Bitcoin is only a financial protocol for making, validating and storing information about transactions among network members. The bitcoin code is publicly available, each participant can explore the logic of the entire network, and some participants can not just grab the bitcoins of other participants.

Given all of the above, I can conclude that bitcoin does not fall under the definition of the financial pyramid.

What do u think about what do you think about my thoughts? Do u agree that bitcoin is not a financial pyramid?

You may write on this blog bro you may get the better debate and views to your blog. If you write this post at there. I use to take the look about the bitcoin is revolution of financial service and payment tool. After digital emergence banking corporates really fooling us worst in part with the consumer fee, merchandise fee and etc.

Cryptos are really will not allow others to earn money with your money. You can pay the amount to the other end with the direct deal of the wallet but financial institutions will not allow that to happen.

[harastvo]

I dont know where to blog and i have no followers, so on the forum I can learn the opinions of the rest.
I dont need many views.
Thanks for your opinion!

[cryptoloverlife]

Bitcoin has never been a pyramid, it's the people who don't know anything are jumping on the conclusions.

Bitcoin is a straightforward, peer to peer transactional vehicle. However, there has been frauds/scams using Bitcoin as a method of financial transactions. These companies/individuals make promises to people with high returns and investments are done by greedy. Later the company runs away with the money. It is because of these frauds, the name of Bitcoin is being tarnished to an extent. The intentions and greed play a very important role here.

Secondly, the banks and financial institutions are creating FUD in the market for people to lose confidence in Bitcoins. Banks/Governments have not done their job in understanding bitcoins properly still.

It is just a matter of time that Bitcoin will be one of the world's leading currency or investment vehicle by itself.



 

[Taki]

Whatever bitcoin is it makes my life better every day and I actually do not care how bitcoin will end, the main point to me is when. Till then I hope bitcoin  will continue to bring me extra profit. You may say that I do not look far from my nose, but I'm sure there are many people with the same opinion like mine.

[harastvo]

Whatever bitcoin is it makes my life better every day and I actually do not care how bitcoin will end, the main point to me is when. Till then I hope bitcoin  will continue to bring me extra profit. You may say that I do not look far from my nose, but I'm sure there are many people with the same opinion like mine.

Thanks for your opinion and for merit, ive merited you too

[buwaytress]

For a myth to qualify, it has to be believed by people... Don't think anyone actually believes it to be a pyramid, even if they might have used that description in the past. Bubble is more of a myth than pyramid will ever be.

Dimon said it was a fraud, he later regretted it (soap opera anyway). The last "reputable" guy (Kovacevich)to say Bitcoin pyramid didn't believe it was a fraud. He admitted not understanding fundamentals but didn't otherwise validate his pyramid claim.

Worth pointing out that the new Wall Street people who should have entered at the bottom are right on top now as the new wealthy while early adopters like Laszlo or even Antonopoulos have next to nothing. Doesn't sound very pyramid like to me.

[pinoyden]

bitcoin is like a pyramid scheme because when new people buy and invest on it , older people that invest on it can get more benefit because the value can possibly increase whenever someone bought bitcoin.

But unlike from other pyramid scheme business , bitcoin does not mainly work from refering users because bitcoins primary purpose is a currency that can be used for buying. It can also be used as an asset for investing or trading.

[donalfonso]

Bitcoin does not fit the definition of a financial pyramid, though it could be used as a tool of exploitation by financial pyramids. but bitcoin itself is not. Like i tell the nay sayers around me.Its just a digital asset or currency.

[JoctanJoramGar1]

Bitcoin is not a pyramid. There is mining. The price will not fall below the cost of mining

[gantez]

Whatever bitcoin is it makes my life better every day and I actually do not care how bitcoin will end, the main point to me is when. Till then I hope bitcoin  will continue to bring me extra profit. You may say that I do not look far from my nose, but I'm sure there are many people with the same opinion like mine.

In as far as you have alluded that people could see you as not seeing beyond your nose but what you have said about the financial profit or benefit of bitcoin is what is in public arena and no investor can deny that. The point and advise is that, we don't have to put our two hands in "hot" water. We need to be wise in investing so we need to buy some altcoins too.

[dev9t9ok]

No, you are wrong. Crypto technologies are not a pyramid because it is just technologies like plastic cards. Let us have a look at a stock market there is also IPO on a stock market where investors can buy shares and some companies will be successful but some ones will not but it does not mean that it is scam. I means that investor was wrong when chosing a company for investment. There is similar on a crypto market.

[samcrypto]

Whatever bitcoin is it makes my life better every day and I actually do not care how bitcoin will end, the main point to me is when. Till then I hope bitcoin  will continue to bring me extra profit. You may say that I do not look far from my nose, but I'm sure there are many people with the same opinion like mine.

And this is why I love bitcoin no matter what negatives news about it because I know in myself that bitcoin changed my life and bitcoin will continue to blessed me more so I can achieve my goals in life. Bitcoin is really not a financialy pyramid that is just a myth, bitcoin is a good investment today and if you still doubt about it you might missed the train way up.

[SergeyGvo]

Bitcoin, even if it drops to $ 1, will not die! Although the growth of it for 50 000 and 100 000 $ - this is fantastic already. He fell below 10,000 and hit the outset, and what was expected is that no asset has ever been growing repeatedly without corrections and stops. However, even the cue jumps in the range of 7 000 - 10 000 - an excellent opportunity to earn

[pobeditelvezde]

It is wrong to compare technologies with a financial scheme (a pyramid). Crypto is technologies(!!!) which let you and me make fast and secure transactions, build distributed systems, make new startups and projects and so on. You tell us about frauds which use possibilities of crypto technologies to scam people but it does not mean that the technologies are bad. There is dollar and there are a lot of frauds who scam people but it also does not mean that dollar is bad because using dollar, frauds scam people.

[RodeoX]

It is obviously not a pyramid. Transactions are between the two parties and nobody else. Amway is a pyramid and when a sale is made many people get a cut. Anyone who thinks this applies to bitcoin does not understand what a pyramid scheme is. So here:

https://en.wikipedia.org/wiki/Pyramid_scheme

[GeorgeGriffin]

A financial pyramid is a structure that pays dividends at the expense of newly arrived investors. In bitcoin, no dividends are paid. Due to the demand and the limited number of coins, its price can grow or fall very much.

[lunaelucemauram]

Bitcoin will not be a pryamid scam as it is being held by many people as opposed by one company or person which is why many users of it are in favor is decentralization at it provide power to the users and not in one institution the only disadvantage of it is that its prices cannot be controlled as it is dependent on the users unlike fiat where the government and its financial market are in control. And for the altcoin or ICO scams it can be debatable as there are many people who really want to scam investors using cryptocurrency much like in real world financial scammers.

[katherin_panini]

The decentralized nature of bitcoin makes it impossible to by a pyramid scam. However, it could be one of the most well orchestrated guerrilla marketing stunts in history.

Guerrilla marketing is when the person trying to sell the product goes undercover as a user and then tells people that they should buy it. So in the case of bitcoin, maybe a bunch of people got together, created a concept, filled their wallets with the coins at a dollar a pop, and then set off to work. They spread the hype around the internet and after several months/years of hard work, boom! It took off. It's not hard to imagine, and it's not necessarily a scam, because they weren't deliberately taking money from anyone.

[dirisu2018]

Bitcoin is no pyramid but a decentralized digital currency.
It has no relationship with pyramids/ponzi or whatever but it can be used as a tool just like our conventional fiat in duping people real big.