Bitcoin Is Not a Ponzi Scheme

[Markjacobs]

People in the media love to bash Bitcoin whenever it corrects and quickly call it over exaggerated names like Ponzi-Scheme. Some people dont seem to understand what an investment is anymore so let me clarify a few things. Bitcoin has a future because it has a use. People use Bitcoin because its faster and easier and requires no middleman.

 People don't have to get screwed by fees when using Bitcoin, and if they are safe and keep Bitcoin in a secure place, people can easily use bitcoin for daily purchases instead of other fiat currencies.

Im sick and tired of all the bashing because its just so unjustified. Bitcoin is innovative and has a place in the world and people need to accept it. Maybe when this thing rallies back to 1k+ people will be more respectful towards it.

Heres what I meant by the media bashing BTC nonstop if u haven't seen footage yourself. http://www.bloomberg.com/video/bitcoin-a-ponzi-scheme-fraud-marathon-s-richards-xkVBN0BCTYOh5O13JTt2Ug.html

also read this article that demonstrates why Bitcoin is not ponzi-scheme and addresses some of the bashing http://www.panture.com/bitcoin-is-not-a-ponzi-scheme/

[grifferz]

People in the media love to bash Bitcoin whenever it corrects and quickly call it over exaggerated names like Ponzi-Scheme. Some people dont seem to understand what an investment is anymore so let me clarify a few things.

The choir appreciates your preaching.

[cookiemonsterwhat]

People who think its a Ponzi Scheme, needs to go to a real one.

Or know the definition of a ponzi scheme, or see one in action. Its all over outside from this forum. The whole i`m going to make back 200% kind of deal. lol.

[Kiki112]

bitcoin is not a nazi scheme, totally agree
we're liberals, we just want to build pyramids and stuff

[zolace]

That which did not function as money before, now functions as money. Something that was valuable for its own sake, most likely gold or silver, becomes valuable for another purpose, namely, the facilitation of exchange…In this scenario, something that had independent value becomes the focus of traders, who find that their ability to buy and sell increases as a result of the use of this commodity. Money develops out of market exchanges. Money was not used for its own sake initially, but it becomes widely used as money as a result of innumerable transactions within the economy…It is the predictability of money’s market exchange rate that makes it money.

[zolace]

This is a ponzi scheme.  First, someone who no one has ever heard of before announces that he has discovered a way to make money…Second, the individual claims that a particular market provides unexploited arbitrage opportunities. Something is selling too low…The individual who sells the Ponzi scheme makes money by siphoning off a large share of the money coming in. In other words, he does not make the investment

[tskweres]

This is a ponzi scheme.  First, someone who no one has ever heard of before announces that he has discovered a way to make money…Second, the individual claims that a particular market provides unexploited arbitrage opportunities. Something is selling too low…The individual who sells the Ponzi scheme makes money by siphoning off a large share of the money coming in. In other words, he does not make the investment

How is the government printing money that doesn't exist so that it can lend it to itself and 'bolster the economy' not a ponzi scheme?

[WWWarrior]

this is insane - how is it possible to meet on this forum people who really think that this is a ponzi scheme? why did you come to this forum?

[zolace]

Plus another thing a Capp on the btc makes it far more less then a pozni scheme, funds will have to be infinite to be a ponzi.

[Acidyo]

this is insane - how is it possible to meet on this forum people who really think that this is a ponzi scheme? why did you come to this forum?

Trolls will be trolls.

[act now]

this is insane - how is it possible to meet on this forum people who really think that this is a ponzi scheme? why did you come to this forum?

Trolls will be trolls.

They see me trollin' they hatin'

[Acidyo]

A teacher asked me today "didn't bitcoin die?"

fuck you mt.gox.

[meawleir21]

People love the Ponzi! and it's a scam! etc... some people here are using that too to get the price lower so they could buy cheap.

[M-215]

buy low sell high!

[g4c]

Bitcoin is a finite issuance bartering token.

One could use any token to conduct a ponzi scheme.

Before people open their slack jaws about Bitcoin they ought to realise what fiat cash in a fractional reserve banking system is...

Fiat cash can inflate/deflate dynamically at the whim of a small group.

Fractional reserve is a debt based money system (scheme can only work using fiat tokens).

Fractional reserve can only continue in an ever expanding debt base.

Fractional reserve is in fact a Ponzi scheme whereby new tokens are issued at ~10:1 on new debts created.

[Flashman]

This is a ponzi scheme.  First, someone who no one has ever heard of before announces that he has discovered a way to make money…Second, the individual claims that a particular market provides unexploited arbitrage opportunities. Something is selling too low…The individual who sells the Ponzi scheme makes money by siphoning off a large share of the money coming in. In other words, he does not make the investment

How is the government printing money that doesn't exist so that it can lend it to itself and 'bolster the economy' not a ponzi scheme?

I accept that bitcoin has some of the superficial attributes of a ponzi scheme, but then some of that's all part of the "network effect" it's more valuable the more people you get into it, denying it won't make the comparisons go away.

However, taking an objective view of government issued currency, that looks like MORE of a ponzi scheme than bitcoin does...

But since many many people don't have the first clue about what makes money, money, and how these systems work, explaining how arbitrary and contrived traditional currency is, engenders cognitive dissonance and you don't really get anywhere until it clicks exactly HOW MUCH of a ponzi scheme government fiat is, some people still think the dollar is 100% backed by gold for instance, or that every dollar of account in the bank is 100% backed by one of those printed paper promises.