Why I see bitcoin as a ponzi scheme

[1Referee]

Bitcoin made us all think about how we can revolutionize the way we pay and store value and the many possibilities of the blockchain.

How can any one compare such a great technology with a ponzi?

Ponzi's leave a trail of destruction behind. Bitcoin brings innovation.

[Bit_Happy]

Bitcoin is NOT a Ponzi scheme, but it does have some real similarities:
For example, the earliest investors (and miners) have a much better chance of making HUGE % profits, also people talking of "new money" needing to come in, etc.

BTC is so much better than a Ponzi, that I find the similarities fascinating, and not at all bad. 

Bitcoin made us all think about how we can revolutionize the way we pay and store value and the many possibilities of the blockchain.

How can any one compare such a great technology with a ponzi?
...

How?
In addition to what I said above, 'Satoshi' is holding over ~1,000,000 BTC, which represents an almost insane amount of real and potential wealth.

[BitcoinBoost]

Mods please delete this FUD.

Someone has a different opinion and you ask for it to be deleted? I don't agree with it either, I'm not hoping some central authority is going to protect me by silencing it. Sound familiar?

[bornil267645]

Everyone has the freedom of expressing their own point of view about bitcoin, but that doesn't mean it's true.

[sed]

Bitcoin is NOT a Ponzi scheme, but it does have some real similarities:
For example, the earliest investors (and miners) have a much better chance of making HUGE % profits, also people talking of "new money" needing to come in, etc.

BTC is so much better than a Ponzi, that I find the similarities fascinating, and not at all bad. 

Bitcoin made us all think about how we can revolutionize the way we pay and store value and the many possibilities of the blockchain.

How can any one compare such a great technology with a ponzi?
...

How?
In addition to what I said above, 'Satoshi' is holding over ~1,000,000 BTC, which represents an almost insane amount of real and potential wealth.

I think bit_happy has done a much better job connecting bitcoin to ponzi than the OP.

[malaimult]

Bitcoin is NOT a Ponzi scheme, but it does have some real similarities:
For example, the earliest investors (and miners) have a much better chance of making HUGE % profits, also people talking of "new money" needing to come in, etc.

BTC is so much better than a Ponzi, that I find the similarities fascinating, and not at all bad. 

You are only looking at qualities of a ponzi, you are not looking at the reasons why something is a ponzi.

The early miners were not promised any kind of exorbitant reward for mining in the early days, they probably though that they would receive nothing of value for their computer's work.

[johnyj]

All the money, in the end, is a consensus and protocol among its users. A child will not accept gold in exchange of his candy, since for him that consensus has not been reached

It will take a long time to form a widely accepted consensus of bitcoin's payment and wealth store function

[sed]

I do like the way that was worded.  But I can't imagine that this experiment has ever actually been run and hell, if it were, I'm not convinced, I mean some gold is pretty shiny and cool looking.

[botany]

Bitcoin is NOT a Ponzi scheme, but it does have some real similarities:
For example, the earliest investors (and miners) have a much better chance of making HUGE % profits, also people talking of "new money" needing to come in, etc.

BTC is so much better than a Ponzi, that I find the similarities fascinating, and not at all bad.  

This is true of any asset bubble. People don't use terms like real estate ponzi, dot com ponzi, etc. Why do they only say that Bitcoin is a ponzi scheme?

[QuestionAuthority]

Bitcoin is NOT a Ponzi scheme, but it does have some real similarities:
For example, the earliest investors (and miners) have a much better chance of making HUGE % profits, also people talking of "new money" needing to come in, etc.

BTC is so much better than a Ponzi, that I find the similarities fascinating, and not at all bad.  

This is true of any asset bubble. People don't use terms like real estate ponzi, dot com ponzi, etc. Why do they only say that Bitcoin is a ponzi scheme?

Because they aren't looking at the absolute definition of a Ponzi. The ignorant masses use generalizations of terms that they hear on Oprah and the nightly news to determine what things in life really are because most of them are too stupid or lazy to find out the truth through research. 99% of the American idiot populace think schizophrenia means someone with multiple personalities because the term has been misused for decades in the media.

Schizophrenia (/ˌskɪtsɵˈfrɛniə/ or /ˌskɪtsɵˈfriːniə/) is a mental disorder often characterized by abnormal social behavior and failure to recognize what is real. Common symptoms include false beliefs, unclear or confused thinking, auditory hallucinations, reduced social engagement and emotional expression, and inactivity. Diagnosis is based on observed behavior and the person's reported experiences.

Dissociative identity disorder (DID), previously known as multiple personality disorder (MPD),[1] is a mental disorder on the dissociative spectrum characterized by at least two distinct and relatively enduring identities or dissociated personality states that alternately control a person's behavior, and is accompanied by memory impairment for important information not explained by ordinary forgetfulness. These symptoms are not accounted for by substance abuse, seizures, other medical conditions, nor by imaginative play in children.[2] Diagnosis is often difficult as there is considerable comorbidity with other mental disorders. Malingering should be considered if there is possible financial or forensic gain, as well as factitious disorder if help-seeking behavior is prominent.

[Chopperman]

Because they aren't looking at the absolute definition of a Ponzi.

Yes, this is the problem 100% for these kinds of discussions.   Outward facing, the social problem with a Ponzi scheme is that you have one or more people trying to convince the lay person that the scheme is legal/solid/worthy of investment, while privately they have other plans.

With Bitcoin, we see an increasing number of people who got on board and are now imploring new users to get on board and "see the light".   It feels so forced and cult-like, therefore when you take a step back, it looks like a pyramid or confidence scam, which is the heart of what Ponzi did.   

The other aspect of Bitcoin that is much ignored and may inhibit future fiat price - Unlike other stores-of-value such as Gold, a single transcation can have the bitcoin amount recycled up to 240 times in a day (average 10 blocks/hour, 24 hours).   The same e.g. 1Oz Gold coin would at most see a turn around of once in a few days.
This is the "velocity" of money that fiat also has in spades.   Bitcoin's potential velocity is so much higher than gold, but not close to fiat.   The current fiat price is still a bubble price from investors last year who mis-timed when Bitcoin goes mainstream and shows how it can perform.

[pawel7777]

With Bitcoin, we see an increasing number of people who got on board and are now imploring new users to get on board and "see the light".   It feels so forced and cult-like, therefore when you take a step back, it looks like a pyramid or confidence scam, which is the heart of what Ponzi did.   

You'll struggle to find many respected members or bitcoin experts actually encouraging people to invest in Bitcoin. They will tell you about advantages of bitcoin and of its potential, they'll advise you to give it a try. But, at the same time, most of them will advise you not to put all your wealth in it and don't invest more you can afford to lose.

And I never got those "cult-like" accusations. Still the most valuable and constructive criticism (whether about economical aspects, PoW etc) comes from within the community, rather than from the 'outside' experts (who usually just fixate on price and 'no intrinsic value' bullshit).

Maybe the reason is that many outside watchers will use a simple logic: "BTC price goes up - bitcoin's doing good. BTC price goes down - bitcoin's doing bad". So when they see others not caring that much about the current price (focusing on adoption and development), they'll automatically assume it must be some sort of cult.

[QuestionAuthority]

Because they aren't looking at the absolute definition of a Ponzi.

Yes, this is the problem 100% for these kinds of discussions.   Outward facing, the social problem with a Ponzi scheme is that you have one or more people trying to convince the lay person that the scheme is legal/solid/worthy of investment, while privately they have other plans.

With Bitcoin, we see an increasing number of people who got on board and are now imploring new users to get on board and "see the light".   It feels so forced and cult-like, therefore when you take a step back, it looks like a pyramid or confidence scam, which is the heart of what Ponzi did.   

The other aspect of Bitcoin that is much ignored and may inhibit future fiat price - Unlike other stores-of-value such as Gold, a single transcation can have the bitcoin amount recycled up to 240 times in a day (average 10 blocks/hour, 24 hours).   The same e.g. 1Oz Gold coin would at most see a turn around of once in a few days.
This is the "velocity" of money that fiat also has in spades.   Bitcoin's potential velocity is so much higher than gold, but not close to fiat.   The current fiat price is still a bubble price from investors last year who mis-timed when Bitcoin goes mainstream and shows how it can perform.

Exactly, the great horde lacks the breadth or depth of understanding required to classify Bitcoin. Their limited ability to understand complex subjects combined with mass media's continuous misuse of terminology makes them label Bitcoin as a Ponzi. Simpletons love to cubbyhole everything. By doing that they create an intellectual "safe zone" where they can live in peace, safely ignoring the true complexity of life.

[btcbug]

Feedback please.

Ok sure. You should do some fucking homework before posting this kind of garbage!

[Flashman]

Simpletons love to cubbyhole everything. By doing that they create an intellectual "safe zone" where they can live in peace, safely ignoring the true complexity of life.

True, everything has to be black or white, any shade of grey is for "indecisive" people.

[El Emperador]

Welcome to Bitcoin!

I suggest you read the white paper:
https://bitcoin.org/bitcoin.pdf


*misses the newbie jail*

I also suggest to read these articles about Ponzi schemes:

https://en.wikipedia.org/wiki/Ponzi_scheme
http://economics.about.com/od/financialmarkets/f/ponzi_scheme.htm
http://www.investopedia.com/terms/p/ponzischeme.asp

[Kprawn]

Hey, you have a right to your opinion, and it seems as though, you did some research on the matter, but somewhere a long the line, you got side tracked, and you formed your opinion on flawed information.

Look at BitCoin for the potential it has in lower banking fees, remittance, opportunity for the un-banked to have access to the financial system, store of value... etc etc..

It is so much more than a "currency" 

[botany]

With Bitcoin, we see an increasing number of people who got on board and are now imploring new users to get on board and "see the light".   It feels so forced and cult-like, therefore when you take a step back, it looks like a pyramid or confidence scam, which is the heart of what Ponzi did.   

You'll struggle to find many respected members or bitcoin experts actually encouraging people to invest in Bitcoin. They will tell you about advantages of bitcoin and of its potential, they'll advise you to give it a try. But, at the same time, most of them will advise you not to put all your wealth in it and don't invest more you can afford to lose.

And I never got those "cult-like" accusations. Still the most valuable and constructive criticism (whether about economical aspects, PoW etc) comes from within the community, rather than from the 'outside' experts (who usually just fixate on price and 'no intrinsic value' bullshit).

Maybe the reason is that many outside watchers will use a simple logic: "BTC price goes up - bitcoin's doing good. BTC price goes down - bitcoin's doing bad". So when they see others not caring that much about the current price (focusing on adoption and development), they'll automatically assume it must be some sort of cult.

Don't invest more than you can lose is wise advice.
Especially true since in the last year you have seen bitcoin drop from $1200 to $300.

[Febo]

As I see you look on Bitcoin from a bit wrong angle. Many things you expect to happen are already there. In alt coins. They are allready tested, there for you to check and see if your assumption are right.