Isn't Fiat the Real Ponzi

[ChiBitCTy]

People whom claim that bitcoin is a ponzi typically have absolutely NO CLUE about it and how it works.  I work in finance so bitcoin comes up a good bit in conversation.  The last few people I've spoken with about bitcoin who claimed it to be a scam had no clue either.  I simply ask this "do you know what the blockchain is?"..typically I get a "no, I don't" which I respond with "then you have no right to call bitcoin a scam/ponzi as you're not even versed on how it actually works".

Fiat money in many ways is a scam.  The fact the the central banks can print as much money as they want is a serious issue.

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[Mame89]

Fiat only reduce in it value of purchase both you have something to quantify with what you have in fiat but Ponzi is as good as scam. With Ponzi no value is placed but anguish, fiat can be made more valuable by more investment and diversification is a sure way to help reduce the harsh effect on you. Don't rely on Ponzi because it is all a bubble waiting to burst but fiat always will have something to measure with.

Correct. Fiat is not a Ponzi, it only reduces value due to inflation but is not a form of Ponzi scheme. The way Ponzi works is by definition completely a scam where if you are not caught holding worthless fiat when everyone realizes that fiat is just useless paper, not much different from useless paper. But so far fiat is useful for transactions within a country. Yes the way fiat works is a little bad at the moment because creating new money to pay back old debt promises sustainable economic growth. Hence the presence of bitcoin as an alternative to fiat.

[philipma1957]

I've seen many blog posts describing bitcoin as a ponzi scheme, but looking at the current inflation of fiat it now looks like a Ponzi. Don't know who is the beneficiary in this kind of fiat Ponzi. The earlier generation had enough to buy with few amounts that can't buy anything reasonable today. I also saw Elon in a tweet saying or calling fiat a Ponzi scheme. People suffer to get fiat and lose it on high food prices and products. In a Ponzi, everyone end up losing money, same with fiat. A good number of people around me complain of not being able to purchase product with a fair sum of money they feel is big.

The blogs that call bitcoin a ponzi scheme simply don't know the difference between bitcoin and altcoins. It is common to see different altcoins been presented to the public as a scheme to that brings instant and high returns on investment.

A Ponzi scheme is an investment that is built to deceive investors. My country's fiat currency could be said to be a legalized Ponzi scheme because politicians will always make promises of how they will make the currency stronger and more valuable. One politician in my country promised to make our local currency to be equal to the USD. Many people believed him and kept their investments in the local currency. Today the currency has lost almost half of its value and the money is gradually becoming worthless.

Not the definition of a Ponzi but it is the definition of a scam.

a scam would be the master set

a ponzi scheme is a subset of it.

Whatever you country is I am sure you leaders are scamming but not via ponzi.  It is a subtle difference.

By now it has become obvious that all countries are just kicking the can down the road. making all fiat worth less with bigger inflation on the picture.

[Gozie51]

Fiat only reduce in it value of purchase both you have something to quantify with what you have in fiat but Ponzi is as good as scam. With Ponzi no value is placed but anguish, fiat can be made more valuable by more investment and diversification is a sure way to help reduce the harsh effect on you. Don't rely on Ponzi because it is all a bubble waiting to burst but fiat always will have something to measure with.

Correct. Fiat is not a Ponzi, it only reduces value due to inflation but is not a form of Ponzi scheme. The way Ponzi works is by definition completely a scam where if you are not caught holding worthless fiat when everyone realizes that fiat is just useless paper, not much different from useless paper. But so far fiat is useful for transactions within a country. Yes the way fiat works is a little bad at the moment because creating new money to pay back old debt promises sustainable economic growth. Hence the presence of bitcoin as an alternative to fiat.

Moreover it is not the problem of fiat but the government that fiat is inflated. Government policy affect fiat and government know the right kind of policy to implement that will boost fiat more and get it stable and not inflated but most times government shy away from those policy. Again when there is war here and there it tends to cause some negative outcome to the economy both for the individual economy and global economy because different countries have contribution to deliver in the world economy and when this begins to drop because of the war it also affect fiat. So fiat is not a Ponzi and Ponzi is scam.

[BitcoinTurk]

Local currencies are controlled by a single central authority and don't have any maximum supply or reserve requirements. This, of course means that local currencies carry risks but it would not be right to make an analogy with the Ponzi system. Yes, one day this system will change and perhaps fiat currency will disappear from our lives completely but in this case I still think it isn't right to compare it to a ponzi system.

On the other hand, when we think of fiat currencies it shouldn't be forgotten that although there is a possibility that they may lose value, their supply is increased to an unlimited extent because they are controlled by a single central authority. In other words, since the probability of the value of fiat currencies being equal to zero in today's conditions is very low, there doesn't seem to be a point where this system will be blocked, just like the Ponzi system.

[CryptoHeadlineNews]

I've seen many blog posts describing bitcoin as a ponzi scheme, but looking at the current inflation of fiat it now looks like a Ponzi. Don't know who is the beneficiary in this kind of fiat Ponzi. The earlier generation had enough to buy with few amounts that can't buy anything reasonable today. I also saw Elon in a tweet saying or calling fiat a Ponzi scheme. People suffer to get fiat and lose it on high food prices and products. In a Ponzi, everyone end up losing money, same with fiat. A good number of people around me complain of not being able to purchase product with a fair sum of money they feel is big.

Bitcoin became popular during the era when we had a whole lot of Ponzi schemes in the country where I come from, (2017-2019), and as such, it is very okay if Bitcoin may have been mistaken for one of these Ponzi scheme due to the writer's lack of knowledge about what Bitcoin is, how it works and what makes it unique and different from the rest Ponzi schemes that came and ran away with people's hard earn money.
Henceforth, I don't see in any way how is fiat now a Ponzi, as it's literally not an investment scheme who robs Peter to pay Paul.

[oktana]

In a Ponzi, everyone end up losing money, same with fiat.

This is so untrue. You don't necessarily lose money with fiat. Yes, with fiat, they keep on printing new money and adding to what is already existing which then adds to the drop in value, However, Ponzi is an investment scheme and it never lasts long. It is always built on nothing but a cycle of people who eventually get unfortunate. On the other hand, fiat is issued by governments and central banks and It has value because these authorities declare it to be legal tender for conducting transactions and settling debts. Unlike Ponzi, fiat is backed by the trust and stability of the government that issues it; it doesn't rely on a continuous inflow of new investors or participants to maintain its cycle.

[benalexis12]

I've seen many blog posts describing bitcoin as a ponzi scheme, but looking at the current inflation of fiat it now looks like a Ponzi. Don't know who is the beneficiary in this kind of fiat Ponzi. The earlier generation had enough to buy with few amounts that can't buy anything reasonable today. I also saw Elon in a tweet saying or calling fiat a Ponzi scheme. People suffer to get fiat and lose it on high food prices and products. In a Ponzi, everyone end up losing money, same with fiat. A good number of people around me complain of not being able to purchase product with a fair sum of money they feel is big.

Bitcoin became popular during the era when we had a whole lot of Ponzi schemes in the country where I come from, (2017-2019), and as such, it is very okay if Bitcoin may have been mistaken for one of these Ponzi scheme due to the writer's lack of knowledge about what Bitcoin is, how it works and what makes it unique and different from the rest Ponzi schemes that came and ran away with people's hard earn money.
Henceforth, I don't see in any way how is fiat now a Ponzi, as it's literally not an investment scheme who robs Peter to pay Paul.

What you said is true. In those early years you mentioned, even if we say that many bad scammers took advantage of the ignorance of the majority who entered the crypto space, it cannot be denied that the name bitcoin quickly became resounding or noisy because of the Ponzi schemes used here.

Apparently the Ponzi scheme has added to the average popularity of Bitcoin, though it is known for its poor technique. So many people did not have a good impression of Bitcoin either. Its bad image was only reduced when they saw the value of Bitcoin rising in the market.

[Mauser]

I've seen many blog posts describing bitcoin as a ponzi scheme, but looking at the current inflation of fiat it now looks like a Ponzi. Don't know who is the beneficiary in this kind of fiat Ponzi. The earlier generation had enough to buy with few amounts that can't buy anything reasonable today. I also saw Elon in a tweet saying or calling fiat a Ponzi scheme. People suffer to get fiat and lose it on high food prices and products. In a Ponzi, everyone end up losing money, same with fiat. A good number of people around me complain of not being able to purchase product with a fair sum of money they feel is big.

This doesn't sound right to me; Fiat money is not a ponzi scheme because it resembles the economic output of a country. The government ensures the strength of their Fiat currency by the potential tax income they can generate in a country. As long as a country has natural resources to sell, or advanced products to export there is a strong value in the currency. It sounds a bit like you are confusing the high inflation we face at the moment with a ponzi scheme. It's not like everybody is losing at the moment, people with a well-paying job that got a decent raise to offset the inflation are happy and look forward to their Christmas bonus. A ponzi scheme would mean that the Fiat currency is worthless eventually because too many people got promised things that weren't true, but I don't see this happening in the big Fiat currencies like Euro or the Dollar.

[albert0bsd]

It is a legal ponzi    

All the bankers are the top of the piramire and all outside of it are paying with inflation.

If it really is a ponzi and you think the government created it to scam you, you should stop using fiat and stay away from it. But if you continue to use it and still can't live without it, don't just talk bad about it.

I am trying to do that, i am exchanging almost all my fiat for bitcoin. I can't do it 100%, but i am trying.

Fiat still have value because most people still believe that their money will have value tomorrow.. but ask about that to some people in Venezuela Zimbabwe, or Argentina to see if they still have faith in their local currency.

Government scam people with inflation, they steal the value of the people's money. if that is not an scam then i don't know what it is.

[legendbtc]

It is a legal ponzi    

All the bankers are the top of the piramire and all outside of it are paying with inflation.

If it really is a ponzi and you think the government created it to scam you, you should stop using fiat and stay away from it. But if you continue to use it and still can't live without it, don't just talk bad about it.

I am trying to do that, i am exchanging almost all my fiat for bitcoin. I can't do it 100%, but i am trying.

Fiat still have value because most people still believe that their money will have value tomorrow.. but ask about that to some people in Venezuela Zimbabwe, or Argentina to see if they still have faith in their local currency.

Government scam people with inflation, they steal the value of the people's money. if that is not an scam then i don't know what it is.

So what about USD? It is also currency and has been the world currency for over 100 years. What is happening in Venezuela, Zimbabwe or Argentina is because governments are corrupt, corrupt, and do not think about their people. But not all governments are like that.

You are still living under their management, without them, where would you get a job, where would you get daily consumer products, or your safety...Governments aren't perfect, but without them you wouldn't be able to survive. Bitcoin is just a financial game, it will bring profit to some people but will also take money from some people, money from one person to another. Nothing is perfect in this world, man.

[hyudien]

I've seen many blog posts describing bitcoin as a ponzi scheme, but looking at the current inflation of fiat it now looks like a Ponzi. Don't know who is the beneficiary in this kind of fiat Ponzi. The earlier generation had enough to buy with few amounts that can't buy anything reasonable today. I also saw Elon in a tweet saying or calling fiat a Ponzi scheme. People suffer to get fiat and lose it on high food prices and products. In a Ponzi, everyone end up losing money, same with fiat. A good number of people around me complain of not being able to purchase product with a fair sum of money they feel is big.

If you think fiat is a Ponzi, try to avoid it, don't use fiat in everyday life to buy anything. Use options that you think do not fall into the fiat category. So, if you have success with other methods, let me know. On the other hand, if you don't really understand how fiat still has a role in meeting life's needs. Don't be fooled by the talk of successful people like Elon Musk because he already has everything, therefore adjust it to your situation and don't use Elon's thoughts too much as the basis of your life because you won't be able to.

[albert0bsd]

So what about USD? It is also currency and has been the world currency for over 100 years.

Talking about 100 years you dont mention this:

In 1933 people in the United states of America were forced to sell their gold at fixed rate of $20.67 per ounce of pure gold.
In 1944 the  Bretton Woods system is implemented between 44 countries

The Bretton Woods system required countries to guarantee convertibility of their currencies into U.S. dollars to within 1% of fixed parity rates, with the dollar convertible to gold bullion for foreign governments and central banks at US$35 per troy ounce of fine gold (or 0.88867 gram fine gold per dollar).

In 1971 Nixon replaced the Bretton Woods system for the current FIAT system...

If you don't see any scam there there I am done talking with you.

The point with the countries with high inflation that i mention before is that it can happen to any country.

[tjtonmoy]

Price of things are determined by demand and supply. People were able to buy more thing with less money back in the past which is not possible right now. We are paying more to get less. But that's how it works. There are more mouths to feed but fewer hands to make those foods. No wonder price will go up. There are also other things such as inflation that could decrease the value of money.

Fiat money has been around us for a long time. We have always paid with Fiat to get whatever we need. We are not losing but we are getting something in exchange. The amount we get can become less with time. But that doesn't make Fiat a Ponzi scheme. Imagine using Bitcoin to buy something with the same price as Fiat.

I am not on the side of Fiat but it is wrong to say that it is a Ponzi scheme. We can control the inflation if we take the right approach and follow right strategy. But the government is not willing to do that because they want to manipulate people. The government is the real culprit here and they are using Fiat to execute Ponzi scheme. Neither Fiat nor Bitcoin is a medium of Ponzi scheme, rather people are using them for bad thing and for this reason people assume that they are part of it.

[STT]

Point with the gold is a good one, government can and will take actions to secure the nation in their eyes.   Gold at that time of the compulsory order was exact money and yet everyone had to give it up.  The same can occur with a forced pension buy in scheme for government failed treasury market imo.   It seems very harsh and over the top but comparatively vs the extremes of a failed nation and by implication the failure of US forces and even NATO strength the implications are massive.

[slapper]

Price of things are determined by demand and supply. People were able to buy more thing with less money back in the past which is not possible right now. We are paying more to get less. But that's how it works. There are more mouths to feed but fewer hands to make those foods. No wonder price will go up. There are also other things such as inflation that could decrease the value of money.

Fiat money has been around us for a long time. We have always paid with Fiat to get whatever we need. We are not losing but we are getting something in exchange. The amount we get can become less with time. But that doesn't make Fiat a Ponzi scheme. Imagine using Bitcoin to buy something with the same price as Fiat.

I am not on the side of Fiat but it is wrong to say that it is a Ponzi scheme. We can control the inflation if we take the right approach and follow right strategy. But the government is not willing to do that because they want to manipulate people. The government is the real culprit here and they are using Fiat to execute Ponzi scheme. Neither Fiat nor Bitcoin is a medium of Ponzi scheme, rather people are using them for bad thing and for this reason people assume that they are part of it.

I understand your demand-supply perspective. We pay more for less because prices have risen. Yes, money had more purchasing power in the past. Money value is at risk, not only more mouths to feed and fewer hands to make food. Fiat money is constantly destroyed by inflation. Though, fiat money underpins our modern economy. We exchange currency for goods and services, and inflation reduces our earnings. But calling fiat a Ponzi? I stop there. I'm not pro-fiat, but I see the broader picture. Fiat is a currency subject to economic and government policy, not a Ponzi scheme.

Consider using Bitcoin like fiat to buy stuff. Wild volatility, but no Ponzi scam. It's a separate beast that could change our monetary system or bite us if not managed well. The government can control inflation and stable money values. Are they willing? Questionable. They can manipulate, but we must hold them accountable. We need practical, solid measures to control inflation and preserve fiat a viable currency. Not the money, but its management. And I'm all for a system that works for the people, not against them.

[Samlucky O]

I've seen many blog posts describing bitcoin as a ponzi scheme, but looking at the current inflation of fiat it now looks like a Ponzi. Don't know who is the beneficiary in this kind of fiat Ponzi. The earlier generation had enough to buy with few amounts that can't buy anything reasonable today. I also saw Elon in a tweet saying or calling fiat a Ponzi scheme. People suffer to get fiat and lose it on high food prices and products. In a Ponzi, everyone end up losing money, same with fiat. A good number of people around me complain of not being able to purchase product with a fair sum of money they feel is big.

You might be right thou. Economic inflation made Fiat to become scam instead of bitcoin. Although the tag given to Bitcoin as scam is not Bitcoin fault, but due to high level of online fruad with the friquent use of bitcoin as an alternative to cash out. The intemedation received by Bitcoin is never a threat to it growth. And this has given me an insight to aquare it. Bitcoin is the new digital gold with a great store of value.

[Minor Miner]

I've seen many blog posts describing bitcoin as a ponzi scheme, but looking at the current inflation of fiat it now looks like a Ponzi. Don't know who is the beneficiary in this kind of fiat Ponzi. The earlier generation had enough to buy with few amounts that can't buy anything reasonable today. I also saw Elon in a tweet saying or calling fiat a Ponzi scheme. People suffer to get fiat and lose it on high food prices and products. In a Ponzi, everyone end up losing money, same with fiat. A good number of people around me complain of not being able to purchase product with a fair sum of money they feel is big.

If you think fiat is a Ponzi, try to avoid it, don't use fiat in everyday life to buy anything. Use options that you think do not fall into the fiat category. So, if you have success with other methods, let me know. On the other hand, if you don't really understand how fiat still has a role in meeting life's needs. Don't be fooled by the talk of successful people like Elon Musk because he already has everything, therefore adjust it to your situation and don't use Elon's thoughts too much as the basis of your life because you won't be able to.

Indeed, many people still depend and use fiat on a daily basis but it is difficult to understand why they call it ponzi or trash. That means they are using garbage and are participating in ponzi even if they already know about it. Furthermore, why don't we make our own judgments, why should we believe what Elon or anyone else says. Is what Elon said completely true?

People who have used fiat for centuries began to criticize and slander fiat when bitcoin was born. I fear that one day, these people will also speak ill of bitcoin if the world invents something newer and more perfect than bitcoin.

[Kelward]

Without a local currency, you can not be able to run a business in a country. But you can not run a business with a ponzi scheme as it will later collapse.

Fiat is backed by the government. Ponzi scheme is not back by anything but it may remain hidden until it collapses.

You can do a business with fiat but fiat become like a scam if you hold it. Why would you hold fiat when their are assets that you can go for.

You know everything about fiat and that makes it not a scam.

Yes fiat can not be associated with ponzi, because it is a means of payment for ponzi and any other item or services anywhere in the world. You can not put blame on fiat currency for Inflation, devaluation or mismanagement in any economy, because as I said earlier it is just a means to to exchange goods and services. Blames for any negatives that affects any fiat currency is as a result of other factors that determines it's value, and these factors can be by minting of excessive new currency into an economy that is stagnant, and the excess money released will devalue it's worth, where excess money will be chasing few commodities. Another is when a country so much dependant on other countries for imports of it's goods and services, it's currency will be devaluing while enriching the currency of the exporting country.

I also agree with you that fiat is better invested than holding it in a bank account, where it is not adding any value to the economy. If a lot of money is hoarded and doesn't circulate, it causes artificial scarcity that will cause the prices of goods and services to increase. So in all you can not blame fiat for any inflation in a country.

[Davian144]

You might be right thou. Economic inflation made Fiat to become scam instead of bitcoin. Although the tag given to Bitcoin as scam is not Bitcoin fault, but due to high level of online fruad with the friquent use of bitcoin as an alternative to cash out. The intemedation received by Bitcoin is never a threat to it growth. And this has given me an insight to aquare it. Bitcoin is the new digital gold with a great store of value.

In any event that befalls and involves Bitcoin, it is indeed illogical to blame Bitcoin completely or completely. Because this arises through the actions of the fraudsters themselves to carry out this action, even though it can also make Bitcoin's image bad in the view of a small number of people who just like Bitcoin. Even though Bitcoin is now worthy enough to be called digital gold due to several factors that have been seen in Bitcoin so there is no reason whatsoever to blame Bitcoin for anything that has happened.

As for economic inflation, it is quite clear that it will involve fiat as a whole because the disruption is so clearly felt by fiat users that it will not disturb Bitcoin as much. Although economic factors can also have a bad effect on people who want to use their money to buy Bitcoin in conditions of inflation, because when inflation occurs everyone thinks more about how to fight difficulties by trying to remove inflation from their own lives.