How do I convince people that Bitcoin isn't a financial pyramid?

[jerrison]

The stage of awareness people have aboyut Bitcoin now, it is of no need trying to convince anybody, just relax and allow them find out. Whoever you tell about bitcoin and he does not want to agree or even tries to argue, just allow them. they will find out later in the future with loads of regret.

With more and more influential people and companies getting involved with Bitcoin there's been a lot of talks about the crypto world among regular people, to whom Bitcoin is still something new and unknown.

As you might expect, many of these people believe that Bitcoin and all other cryptocurrencies will not benefit the economy, but rather only make it worse, and many are convinced that Bitcoin is yet another pyramid. And what upsets me the most is that among these people are economists, financial advisors, they should know better, than that...

So how do I prove them wrong?

Though I'm not a professional economist, still I've come up with some arguments as to why Bitcoin ISN'T a financial pyramid:

1. There's no single beneficiary
In financial pyramids, there's always someone, an organization, or a group of people who benefit from peoples' investments. Who benefits from Bitcoin? Anyone can become that person if he/she invests enough money, there's no one, who controls it.

However, a friend of mine argued that there are people, who benefit: electric companies from large energy consumption due to mining and the companies that develop and sell the miners.

But that's just crazy, to believe in that we'd have to assume that they're all in collusion.

2. There's no need for new recruitment
That's probably my favorite. The main reason why financial pyramids survive is that they constantly recruit new customers. Without that - the pyramid falls.
But there's absolutely no need to recruit new people for Bitcoin to function, am I right? Without new users, there'll be just redistribution of what there is among the current users, txns will still be going and the miners will have work to do. So there's no required amount of users for Bitcoin to function like there is in the pyramid. I see no potential flaws here.

3. There are no promises
In financial pyramids, it is common that an organization lures people in by promising that they can easily "turn $100 into $1000", for instance. There's no such thing with Bitcoin. Yes, there's a potential for it to grow, you can make money out of it, but there's also a potential for it to drop, everyone invests knowing this can happen and sometimes it does happen, we go in here being aware of the risks.

That's about it.

Also, one thing that people keep telling me and get me cornered with is that there's no actual value behind Bitcoin. And that the economy can't function like that. Making Bitcoin only requires resources (e.g. energy, machines), but Bitcoin doesn't give anything in return. They say that behind the fiat there's an actual value, which is why we can avoid inflation: precious metals, country resources, plus it is fixed to the GDP, which is why the economy can be stabilized.
Without that - fiat is just paper. And while Bitcoin has nothing like that fixed to its price - it is also nothing.
They say you can't just "create" money out of nowhere. The only way Bitcoin can function as a part of the economical system - is if we replace the fiat with it. What can you say about that? Sounds reasonable, but I'm not a specialist. Is that really true?

Don't hesitate to point out if I'm wrong somewhere, it'll help a lot. Also, it would be very helpful if some of you could come up with more arguments, proving that Bitcoin isn't a financial pyramid.

I know it isn't and I also want other people to know that it isn't, and for that, I need as many arguments as possible.

[Sanugarid]

With more and more influential people and companies getting involved with Bitcoin there's been a lot of talks about the crypto world among regular people, to whom Bitcoin is still something new and unknown.

As you might expect, many of these people believe that Bitcoin and all other cryptocurrencies will not benefit the economy, but rather only make it worse, and many are convinced that Bitcoin is yet another pyramid. And what upsets me the most is that among these people are economists, financial advisors, they should know better, than that...

So how do I prove them wrong?

Though I'm not a professional economist, still I've come up with some arguments as to why Bitcoin ISN'T a financial pyramid:

1. There's no single beneficiary
In financial pyramids, there's always someone, an organization, or a group of people who benefit from peoples' investments. Who benefits from Bitcoin? Anyone can become that person if he/she invests enough money, there's no one, who controls it.

However, a friend of mine argued that there are people, who benefit: electric companies from large energy consumption due to mining and the companies that develop and sell the miners.

But that's just crazy, to believe in that we'd have to assume that they're all in collusion.

2. There's no need for new recruitment
That's probably my favorite. The main reason why financial pyramids survive is that they constantly recruit new customers. Without that - the pyramid falls.
But there's absolutely no need to recruit new people for Bitcoin to function, am I right? Without new users, there'll be just redistribution of what there is among the current users, txns will still be going and the miners will have work to do. So there's no required amount of users for Bitcoin to function like there is in the pyramid. I see no potential flaws here.

3. There are no promises
In financial pyramids, it is common that an organization lures people in by promising that they can easily "turn $100 into $1000", for instance. There's no such thing with Bitcoin. Yes, there's a potential for it to grow, you can make money out of it, but there's also a potential for it to drop, everyone invests knowing this can happen and sometimes it does happen, we go in here being aware of the risks.

Convincing people who're into easy money will never pay attention to explore and learn anything about BITCOIN. Well. their mentality always focuses on rewards which are basically exploited on the financial pyramid. One more thing, Bitcoin is not directly connected to the economy of a country since its a decentralized system even if the price of BTC goes down still it has no significant effect over the economy.

[gabbie2010]

Well you can't blame this people of not believing about Bitcoin easily, with so many scam around us, you can't just easily detect them with all that promising and all that. But with regards to bitcoin these people still skeptical although they already have the idea somehow of what bitcoin really is, they just don't want to get involved with it to become victim, but if they will only open their mind to accepting that bitcoin will help them and will benefit them, I'm sure they would love to participate into it.

In addition the bad experience of some people who invested and patronized in the outlived and bankrupt MMM Ponzi scheme even contributed more to shunning or lack of interest in investing in Bitcoin, coincidentally the scheme later introduced investing into the pyramid scheme with Bitcoin likewise payment, unfortunately when the scheme collapsed there was wide outcry and resentment among the investors particularly painting Bitcoin in a bad light, since then it had been difficult convincing people to invest in Bitcoin especially the uneducated ones.

[bosede1]

Why do you need to convince anybody about this, you won't be the one to convince them when the time comes but they will be the ones convinced when they see the outcome of you been into this in the future and I will say for those that invest early their future is now. Either it is a financial pyramid, semi-financial pyramid, or non-financial pyramid they will be the one to explain later.

[AicecreaME]

To be honest, you don't have to convince people about Bitcoin not a financial pyramid or whatsoever they think of it, let them be. Well, I've said that because convincing those kind of people is pretty hard and they will just put the blame on you if they try Bitcoin and lose their money on it because of volatility that will be their reason to panic and cash all out their funds on Bitcoin, how ironic isn't it?

That's why I never bother explaining it to them. If someone will ask me about it all I say is "you could find more accurate answer on google and there's a lot of tutorials in YouTube", something like that, because I don't want to waste my time on such people. I mean if they are really curious about it, they will do everything to know what really Bitcoin is.

[androyster]

Who cares what people think about Bitcoin?  It's really irrelevant whether or not someone thinks it's a pyramid.

[Argoo]

Why do you want spend you time explaining evident facts? Just show them a financial pyramid definition and stop casting pearls before swine.

Outwardly, bitcoin really looks like a classic financial pyramid and there is still nothing we can do about it. We all recognize that for that for bitcoin to continue to rise in value, people need to invest more in it. The fact that it has been constantly increasing in price for more than ten years as a whole cannot serve as an absolute guarantee that this will continue in the future. Therefore, convincing someone that bitcoin is not a pyramid scheme is not worth it. This is a completely new type of financial asset, which is still difficult to explain to people who have dealt only with the common currency of states. For now, we should use Bitcoin and another potential cryptocurrency. Our profit over time will serve as a good proof of the cryptocurrency's performance, and the longer it lasts, the less someone will need to be convinced.

[skarais]

Let those who hate remain haters and those who support and believe will benefit from it. Since 2017 I joined this space and registered a forum account, so I can confirm that bitcoin is not a pyramid investment scheme as we often see. People can say anything about bitcoin including they think of it as a ponzi scheme and so on. But the fact is that we never really needed to recruit other people here to invest in what would later benefit us.

I have some friend who until now have never believed in bitcoin. For him bitcoin is an investment that will fail after the initial investor get a lot of profit, his thinking is not much different from some other people who think that bitcoin is a pyramid scheme. With a smile I can tell him that "you really missed the golden opportunity in life to become a millionaire because of bitcoin".

[Assface16678]

Who cares what people think about Bitcoin?  It's really irrelevant whether or not someone thinks it's a pyramid.

Exactly, why would you care that people will know about bitcoin, let them come to you to learn and not the other way around because it is a stupid thing to do because they will resist the knowledge and information that you are going to impart on them which is understandable, no one wants people to put it in their face that they know more than you right?

[LeancyBTC]

To be honest, you don't have to convince people about Bitcoin not a financial pyramid or whatsoever they think of it, let them be. Well, I've said that because convincing those kind of people is pretty hard and they will just put the blame on you if they try Bitcoin and lose their money on it because of volatility that will be their reason to panic and cash all out their funds on Bitcoin, how ironic isn't it?

That's why I never bother explaining it to them. If someone will ask me about it all I say is "you could find more accurate answer on google and there's a lot of tutorials in YouTube", something like that, because I don't want to waste my time on such people. I mean if they are really curious about it, they will do everything to know what really Bitcoin is.

I agree with your point. It hard to change others' perspective, especially when it is fully formed with arrogant and selfishness. They will never open their heart to learn about bitcoin or any technology that related (which means: blockchain, cryptocurrencies, altcoins, Defi, nft or the decentralization)

I used to convince my friends and elderly that bitcoin is never a scam or any sort of that but only 10% listen to me and reshape their mind.

[Kamarah]

People often call Bitcoin as virtual money. So it negatively affects the thoughts of many people. They think virtual money will lose and have no values so they are afraid to learn and do not dare to invest. Besides, there are many countries that strictly prohibit virtual money like Thailand, Thai Bank said that this is a non-prestigious currency. In my opinion I Bitcoin is not quite negative as you think. The truth is that I am making money from Bitcoin investment. Thanks to Bitcoin but my economy is more stable, has money.

[xiboothrezi]

~

I have some friend who until now have never believed in bitcoin. For him bitcoin is an investment that will fail after the initial investor get a lot of profit, his thinking is not much different from some other people who think that bitcoin is a pyramid scheme. With a smile I can tell him that "you really missed the golden opportunity in life to become a millionaire because of bitcoin".

some of my friends also think like that

Some even warned me to leave bitcoin immediately because it was dangerous. I just respond with a smile and understand it because everyone has their own views. here I learned the importance of knowledge, with that we have the power to distinguish which news is true and what is not.
When the pandemic started to destabilize the economy, I still had reserves of income from trading, my friend who previously underestimated bitcoin came to me and now wants to learn.
see? without coercion and overdoing things, the people around me realized for themselves that bitcoin provides a good opportunity to earn money.

[avadonne]

It is hard to convince people that Bitcoin is not a scam. But I guess due to the popularity of Bitcoin, there is a possibility that they already know that Bitcoin is a good investment especially when it was introduced by the CEO of Tesla. We can't really convince everybody. It is not too late for everybody. We are still in the first phase of adoption.