Bitcoin - a financial pyramid: true or myth?

[A7373]

I think that's a myth becouse , those people who study that topic can clearly say that whole cryptocurrency and also whole blockchain technology is very usefull for all humanity!

[BagzMM]

In my opinion, its not a financial pyramid. It is a financial asset an innovative kind of payment network form of electronic cash. It cannot be a pyramid because transactions is peer -to-peer.

[yndye]

In my opinion, its not a financial pyramid. It is a financial asset an innovative kind of payment network form of electronic cash. It cannot be a pyramid because transactions is peer -to-peer.

By definition, pyramiding scheme means people who get in first would be paid by the money given by the latest joiners so if you think about it, bitcoin is not a pyramid because people are trading so that they can gain from it. Maybe those HYIP sites are pyramiding scheme but if you are talking about bitcoin in general and about how its price increase or decrease due to law of supply and demand then it is not a pyramid scheme so in short it is just a myth.

[OVA|official|]

myth 100% lol

[Jimmi Andersen]

Let me tell you a story when I tried to explain to people that bitcoin is not a pyramid.
It was in 2013-2014, when I first got acquainted with bitcoin. All my friends said that bitcoin is an ordinary pyramid and it will soon burst. But as we can see, 10 years have passed since the creation of bitcoin. Those who are not afraid and they risked to invest their money in" this pyramid " and now feel very good.

[rlm42]

Ponzi scheme or pyramid - a form of investment fraud, which includes the payment of expected profits to existing investors from the funds collected from new investors. Organizers of the Ponzi scheme often attract new investors by promises to invest the collected funds in projects with a high return on investment and minimal risk. In many Ponzi schemes, instead of full-fledged investment, scammers are engaged in attracting new funds through which they will make promised payments to early investors and assign a portion of these funds for personal use.
The pyramid vanishs, because it becomes unprofitable to the beneficiary.
Bitcoin does not fall under the definition of the financial pyramid. This is, in fact, a form of digital currency that is used by network participants, and the number of virtual wallets for its storage today already exceeds 11 million worldwide. There are many factors that form the price of the currency, but one of the main is the volume of demand for the currency and the number of users it is of currency. Therefore, it is quite natural that with the expansion of the user network, the bitcoin price continues to grow. This is natural for any currency, and bitcoin should not be considered a particularly suspicious anomaly.

[frostmourne0311]

Let me tell you a story when I tried to explain to people that bitcoin is not a pyramid.
It was in 2013-2014, when I first got acquainted with bitcoin. All my friends said that bitcoin is an ordinary pyramid and it will soon burst. But as we can see, 10 years have passed since the creation of bitcoin. Those who are not afraid and they risked to invest their money in" this pyramid " and now feel very good.

You had a good view dude, not only I but everyone around me know BTC, but we don't care. May be hard real life made us enough for thinking of this kind of asset.

[freezzeer]

Bitcoin is not a pyramid.But nowadays,so many people do  scam things using bitcoin. Those are the killers of Bitcoin future 

[aleksnutis]

Of course bitcoin is not a financial pyramid. He simply does not fall under the definition of such.
Around the financial pyramids is not built infrastructure. Blockchain and crypto currencies are already a serious financial area, so you can talk about them as a pyramid.

[darewaller]

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?

Well, most things in this world are kind of pyramid, when person is gaining from this particular thing, there is a different person that is losing. Unless we are talking anything that has to do with selling a product for money, in this situation both parties will be very much satisfied. But as for things like this, the money is kind of rotating and old guys are ripping off the new guys.

That’s how it is, even forex trading is in the same way. When you’re trading there are also other people that are trading and if you lose and they win, then part of yore money goes to them and the other remaining goes to the platform.

[Kemarit]

~ snip ~

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?

Let's define what a Pyramid Scheme is:

The Scheme
As its name indicates, the pyramid scheme is structured like a pyramid. It typically starts with one person – the initial recruiter – who is on top at the apex of the pyramid. This person recruits a second who is required to "invest" a certain amount, which is paid to the initial recruiter. In order to make his or her money back, the new recruit must recruit more people under him or her, each of whom will also have to invest. If the recruit gets 10 more people to invest, he or she will make a profit with just a small investment.

https://www.investopedia.com/articles/04/042104.asp

So basically there's someone always on top of you ,at the apex and your down line is the one working for you to make money by recruiting others to join the scheme. So with that basic definition, we can't call bitcoin a financial pyramid because we don't need to such things (recruiting more people in order for you to get financial gains). The "Bitcoin is Pyramid" steam from the media who portrays crypto in general as a big Pyramiding Scheme but at a closer inspection, its not. So its stuck with us up to this day and even how hard we try to explain to others they are already blind because others really believed what they hear or read.

[Andrew S]

This is hardly a pyramid, because when bitcoin has reached a high point the market has not collapsed and is still holding, although not already in such positions as before.

[sestan]

Having a product or something like that is a significant difference. Speaking of bitcoin, it is difficult to draw any conclusions. Not so simple.

[Baofeng]

Having a product or something like that is a significant difference. Speaking of bitcoin, it is difficult to draw any conclusions. Not so simple.

But definitely, can't be considered as a financial pyramid by definition. You can invest anytime you what, and you don't need to market it by any sense. And its up to you how much money you going to put up. And no single person is benefiting if you are going to trade (buy/sell). The appropriate term should be "investment portfolio", in my opinion. Because the moment you buy, you hold that assets, which in this case bitcoin. And you have total control of it + privatekey in your wallet.

[katherin_panini]

Having a product or something like that is a significant difference. Speaking of bitcoin, it is difficult to draw any conclusions. Not so simple.

But definitely, can't be considered as a financial pyramid by definition. You can invest anytime you what, and you don't need to market it by any sense. And its up to you how much money you going to put up. And no single person is benefiting if you are going to trade (buy/sell). The appropriate term should be "investment portfolio", in my opinion. Because the moment you buy, you hold that assets, which in this case bitcoin. And you have total control of it + privatekey in your wallet.

Exactly, there's always a way out. And it won't collapse under your feet when you're least expecting it. Maybe some Altcoins could be considered as ponzi/pyramid schemes because the owners just pull out their investment when the little people like you and I are least expecting it. Telegram groups close, exchanges reject the coin, people just disappear into thin air. That, by definition is a pyramid scheme. Bitcoin is just an investment opportunity for your portfolio, and a good one at that.

[Blackrain13]

   No bitcoin is not a financial pyramid because you don't need to rely into others to have a pay out. In bitcoin you need to invest at your own risk anytime and any amount you want. You don't need to recruit to have a down line just to earn. Bitcoin is a digital currency that you need to invest to earn profit by your own.

[Maricel2017]

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.

That is correct mate no matter what altcoin would creates the important is we earn good amount of income every day or weekly even monthlt that gives us better life than before. I always be thankful to bitcoin and whole cryptocurrency which gives me extra income that can i provide all the need and some wants of my family, me also i am wishing that bitcoin will last forever.

[Bdstar]

I think so. Bitcoin is becoming an alternate way of gold and another valuable asset. day by day Bitcoin and blockchain system is getting accepted among many people and they are collecting Bitcoin as a future reserve. Not only that but also Bitcoin has been considered as trading tools and investment. So it may be called a financial pyramid.

[geberger]

Bitcoin is not a pyramid.But nowadays,so many people do  scam things using bitcoin. Those are the killers of Bitcoin future 

Bitcoin is one of the most stronger crypto currency of the world and it has a very bright future, I do not think that anyone can affect the bitcoin future, bitcoin future will remain as bright and will see more success to bitcoin.

[Wipro]

Bitcoin is not a pyramid.But nowadays,so many people do  scam things using bitcoin. Those are the killers of Bitcoin future 

Bitcoin is one of the most stronger crypto currency of the world and it has a very bright future, I do not think that anyone can affect the bitcoin future, bitcoin future will remain as bright and will see more success to bitcoin.

Welcome to the forum first., I expect you guys should support the bitcoin and then only we could find the good bump in the price chart. Even volume and value also defnes in that criteria only dude. I see the people with altcoins most of the time. But any long term investor is there means they will go with bitcoin only.

As soon as possible we will find the bitcoin is being used on banks and elsewhere then non cryptos will also turn back to BTC.