[2020-01-02] Tendayi Kapfidze : “Bitcoin is a Pyramid Scheme"

[jdebunt]

The opinion by Tendayi Kapfidze is not unique. However, it is also a bit dubious. Based on his first statement, all investment markets are pyramid schemes. Investors benefit from others buying the same investment vehicles that they do. This applies to any and all markets, and isn’t unique to bitcoin.



https://fintoism.com/news/tendayi-kapfidze-bitcoin-is-a-pyramid-scheme-without-real-world-utility/

[1714000899]

1714000899

[cr1776]

The opinion by Tendayi Kapfidze is not unique. However, it is also a bit dubious. Based on his first statement, all investment markets are pyramid schemes. Investors benefit from others buying the same investment vehicles that they do. This applies to any and all markets, and isn’t unique to bitcoin.



https://fintoism.com/news/tendayi-kapfidze-bitcoin-is-a-pyramid-scheme-without-real-world-utility/

Who is Tendayi Kapfidze and why should we care?  Until now I'd never heard of him (economist at Lending Tree as it turns out), and he is the type who has been saying since bitcoin was $0.10 that it was a ponzi, pyramid scheme etc.

He neglects the fact that if something has value to someone else, then there is a market for that something and just because other people also later recognize that value does not mean it is a pyramid scheme.

[Lucius]

jdebunt, I know you are or the owner of the site you promote or you are paid for each link you post, but refrain from posting such nonsense. Tendayi Kapfidze is actually no one, he's so influential that his twitter account is have 261 followers, and in his effort to promote himself he thinks to call Bitcoin pyramid scheme can help him in life? It can actually help him become an idiot bigger than he really is now...

[aoluain]

If we are talking about Yahoo Finance and 'Tendayi Kapfidze' we might as
well post the actual link > https://finance.yahoo.com/news/bitcoin-pyramid-scheme-says-economist-070015526.html

Tendayi Kapfidze, chief economist at Nasdaq-listed online lending marketplace Lending Tree,
has said that bitcoin is a “pyramid scheme.”

I want to congratulate this character for bringing Bitcoin into the news,
while not being very original by calling Bitcoin a ponzi scheme at least
he might in his efforts to gain some kudos pique some peoples attention
enough to become interested.

you know any publicity is good publicity.

To quote the last paragraph of the article:

Yet, a recent report from Bank of America names bitcoin the single best investment of the last decade. The report said if you invested $1 in bitcoin at the start of 2010, it would now be worth more than $90,000. Last year alone, the value of one bitcoin rose more than 85%, making it one of the top-performing financial assets in the world.

!

[stompix]

Based on his first statement, all investment markets are pyramid schemes.

I'm wondering how companies hire these people!

LendingTree went through a successful initial public offering (IPO) on February 15, 2000.

So, he's working for a pyramid scheme...when is he going to turn himself to the police?

It can actually help him become an idiot bigger than he really is now...

I seriously doubt it, he is in full Super Sayan mode

[CryptoBry]

The opinion by Tendayi Kapfidze is not unique. However, it is also a bit dubious. Based on his first statement, all investment markets are pyramid schemes. Investors benefit from others buying the same investment vehicles that they do. This applies to any and all markets, and isn’t unique to bitcoin.

Calling something popular like Bitcoin as ponzi can certainly be a good way to promote someone's name, reputation and expertise. However, since this accusation has been going since the very beginning of Bitcoin, we see that this is nothing new and is not anymore catching up attention from the people. Bitcoin has already surpassed that stage and right now nobody in his right mind can prove that it is just a pyramid scheme, especially in accordance to the definition of being one. Certainly Tendayi Kapfidze is not unique on this aspect and he is just another unknown and his expertise is something we do not need at this time. But nice try.

[odolvlobo]

The opinion by Tendayi Kapfidze is not unique. However, it is also a bit dubious. Based on his first statement, all investment markets are pyramid schemes. Investors benefit from others buying the same investment vehicles that they do. This applies to any and all markets, and isn’t unique to bitcoin.

I disagree. He gave the standard generalized definition of a pyramid scheme, and I agree with his opinion to some extent. It is hard to argue that Bitcoin has not become somewhat of a pyramid scheme in the last few years.

Those people that claim that Bitcoin is a "store of value" and not a "medium of exchange" are describing a pyramid scheme, because the stored value does not come from the utility of Bitcoin, but from the belief that new people will invest in it. People that promote Bitcoin as a way to make money because it is a "store of value" are promoting a pyramid scheme. Unfortunately, because Bitcoin currently has very little utility, that is how many people are now promoting it. It is not surprising that intelligent people think of Bitcoin as a pyramid scheme -- because that is how it is being promoted!


On the other hand, those of us who see Bitcoin as a "medium of exchange", or even a "store of value" because it is a "medium of exchange", don't see Bitcoin as a pyramid scheme.

In order to convince people that Bitcoin is not a pyramid scheme, you must show them that it is primarily a medium of exchange. You must teach people that if they promote Bitcoin as primarily a "store of value", then they are promoting a pyramid scheme.

[bbc.reporter]

He might be oversimplifying it and from his oversimplification, can we also tell everyone that other markets are also pyramid schemes like the stockmarket?

[magneto]

We've heard this way too many times for it to affect the market in any substantial way. I don't think that the current correction below $7k has anything to do with this piece of opinion despite what some people may make of it.

It's also interesting how these critics are saying that btc is a pyramid scheme, while ignoring the problems with fiat currency altogether. At the very, very least, there is no potential for bitcoin to be manipulated by a central entity, while there is every potential for that to be done to fiat.

But yeah, disregard entirely. It's not worth even responding to these absurdities.

[NeuroticFish]

1. This topic was already discussed here: https://bitcointalk.org/index.php?topic=5214319.0
2. Since OP owns that website, my advice would be to write proper new and useful articles:

It's clearly a theory of people who don't care to understand Bitcoin and its economy, people that feel threatened by Bitcoin, so they came out bashing it.

We should focus on emphasising what is wrong in such theories (as written in some of the posts) and maybe the blogs and newspapers should write some articles like "why economists are wrong about Bitcoin" or "why Bitcoin is not a Ponzi"

[hv_]

Not fully true, only if its use is artificially restricted / governed to be a 'store of value' = 'club for hodl'  thingy

[1Referee]

Not fully true, only if its use is artificially restricted / governed to be a 'store of value' = 'club for hodl'  thingy

People vote with their money. No one is forced to put anything in Bitcoin or to not take it out when they own some and want to get out.

If I don't like what Bitcoin is, I'll dump most of it and put that capital into another coin. The very fact that people aren't choosing BCash or BSV is that they firstly aren't unique (hundreds of altcoins are faster, cheaper and just as, if not, more scalable), and secondly, they are lead by entities who most normal thinking people don't want to be associated with.

You vote with your money too by holding BSV. It's a vote that hasn't worked out well and probably never will unless we go through a 2017 like mania again.

[hv_]

Not fully true, only if its use is artificially restricted / governed to be a 'store of value' = 'club for hodl'  thingy

People vote with their money. No one is forced to put anything in Bitcoin or to not take it out when they own some and want to get out.

If I don't like what Bitcoin is, I'll dump most of it and put that capital into another coin. The very fact that people aren't choosing BCash or BSV is that they firstly aren't unique (hundreds of altcoins are faster, cheaper and just as, if not, more scalable), and secondly, they are lead by entities who most normal thinking people don't want to be associated with.

You vote with your money too by holding BSV. It's a vote that hasn't worked out well and probably never will unless we go through a 2017 like mania again.

This is true, and there is long and short term - I see only BSV winning (sep tha halvening race) for the long term

KISS & Capacity

[Kyraishi]

It's all just FUD. I don't think that anyone is paying attention to these types of things within the market anymore.

The commonly used arguments have been tackled time and time again, whether ranging from the fact that bitcoin does not have "intrinsic value" or that block reward halvings constitute some sort of inherent monopoly that earlier adopters have over the currency supply.

I haven't seen any convincing arguments, nor there will ever be, because bitcoin is probably less of a "pyramid scheme" than fiat currencies. And if bitcoin was to be defined as a pyramid scheme, then essentially all commodities are pyramids also.