re: Bitcoin is a Ponzi scheme—the Internet’s favorite currency will collapse.

I can agree that certain characteristics of the bitcoin market resemble those of a Ponzi scheme. Early adopters see their stake in bitcoins rise in value and then they sell them off at a profit. No doubt that is happening.

But the M.O. of a Ponzi scheme is that a single entity takes in and dishes out investment money (i.e., exclsuive control over the money).

That is not happening with bitcoin.

You even admitted in previous posts that bitcoin is traded like a commodity. Victims of ponzi schemes generally aren't free to trade their stakes to third parties -- they can only trade with and through the ponzi schemer. Holders of bitcoins can trade with anyone for anything.

I know you realllly want bitcoins to be a ponzi scheme, but that square peg just doesn't fit in the round hole.


ETA: I know Russian will ignore my post and focus on this sentence:

quote:

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Holders of bitcoins can trade with anyone for anything.

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by cheekily pointing out the limited universe of vendors that accept bitcoins