Bitcoin will ruin people | TigerDroppings.com
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Tigershatebama
LSU Fan
New Orleans
Member since Feb 2006
141 posts

Bitcoin will ruin people

The people paying for this garbage and the businesses that are actually accepting Bitcoin as a means of payment are going to lose and lose big.

Contrary to it's wiki pages, it is nothing more than a Ponzi scheme. Here I'll tell you why. But first you have to understand some of it's concepts.

There is a limited amount of Bitcoins that can exist. ~21,000,000 in year 2140 at which time no new BTC will be created.

Bitcoins exist due to computers performing a calculation. Calculations become more difficult as more computing power becomes available by gaining more adopters. Thus it becomes harder for someone to create Bitcoins as more people try to create them.

Bitcoins are created by computers at a rate setup so that more Bitcoins are produced early with fewer and fewer Bitcoins created as time goes on. Basically year 1-4 produces the most bitcoins (with easier calculations); Year 5-8 produces half the bitcoins as the previous 4 years; Year 9-12 half as many as years 5-8....




You have early adopters with large pools of 'free BTC' and new adopters either converting USD (or services and goods) to buy 'paid BTC' from some of these pools, or attempting to create new 'free BTC.'

However, these new adopters are dealing with scarcity. Not as many BTC are 'created' as before. And there is increased competition (due to larger numbers of adopters) to create these fewer BTC.

So, you've got 2 classes of people:
The early adopters (probably the creator and his buddies being the largest holders) pooling BTC.
New adopters paying real tangible assets (USD, goods, and services) to be a part of the "future of currency."

So how is this a Ponzi scheme?

Early adopters with large sums of 'free BTC' convince new people to adopt (and they're doing a great job of this.) As more and more adopters join in, it becomes harder and harder to get 'free bitcoin.' So, real assets are traded for 'paid BTC' for new adopters to get into the BTC market.

So what you have now is few people at the top that haven't really created anything receiving real assets from new adopters. Eventually, the only way for the newest adopter to not lose is to convince someone else to get into the market and so on and so on. That is exactly like a Ponzi scheme.




Imagine a world 10 years from now with only Bitcoin and no paper money:

You have 100 hacker types living in their mother's basement in year 2005 at the top of the bitcoin world with 1000's of Bitcoins.
You have 30,000 adopters getting into the market in 2013 with 10 bitcoins.
You have 6 billion other people that have no idea what a bitcoin is until 2023 who now have bitcoin as the means of trade.

This last group are the people that produce everything you consume. (Food, entertainment, shelter, healthcare.....) yet only earn fractions of a bitcoin. 0.00000035 for a triple bypass so the surgeon makes 0.00002865 BTC for the year.

The basement hacker guys become the new Rockerfellers and Hearsts, yet never produced a damn thing. Those 6 billion people will not let this happen.

This is why Bitcoin will eventually be worth zero. So all of you guys buying into this, or thinking about it, know that this will be worthless. DON'T GAMBLE YOUR WEALTH AWAY ON SOME PONZI SCEME.


WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

re: Bitcoin will ruin people
ok, your opinion has been noted. it's wrong, but you are certainly entitled to it.


joshnorris14
Florida Fan
Florida
Member since Jan 2009
21478 posts

re: Bitcoin will ruin people
Huge leaps and logic between your last two paragraphs


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FT
Georgia Tech Fan
Aston Villa Supporter
Member since Oct 2003
20340 posts
Online

re: Bitcoin will ruin people
quote:

WikiTiger
Explain where he's wrong?

I have no idea if he's right or not, but you're knowledgeable on the subject.


LSURussian
LSU Fan
Member since Feb 2005
85152 posts

re: Bitcoin will ruin people
:NB4Russian:


Srbtiger06
USA Fan
Buga Nation
Member since Apr 2006
22952 posts

re: Bitcoin will ruin people
paging wi

god dammit


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The Dude's Rug
LSU Fan
Gerdzfa
Member since Nov 2004
9381 posts

re: Bitcoin will ruin people


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WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

re: Bitcoin will ruin people
quote:

Explain where he's wrong?


do I have to do it againnnnnnnnnn?


Well, for one thing, it's not a Ponzi scheme. It doesn't meet the definition of it at all. You can go look it up yourself. Bitcoin is in no way a Ponzi scheme. So basically, whenever anyone calls it that, I know that they haven't really done any investigation and instead have relied on histrionic rants they've read elsewhere on the internet.

But beyond that, how is he wrong:

He uses the early adopter argument as something negative.

What he doesn't acknowledge or perhaps even understand is that early adopters are the ones that built the network. They invested valuable resources in it, such as hardware, skills, time, and electricity consumption. They did not get "free" bitcoins.

But not only that, why shouldn't early adopters benefit? Do people who bought Apple stock early get vilified because they took a risk on something they believed in?



I'll discuss more as this thread evolves.


PrimeTime Money
USA Fan
Houston, Texas, USA
Member since Nov 2012
12171 posts

re: Bitcoin will ruin people
But his point wasn't really so much about early adopters as it was about those who get in the game much later.


Springfield XD
Member since Feb 2013
1782 posts

re: Bitcoin will ruin people
Thank you for your contribution.


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Tigershatebama
LSU Fan
New Orleans
Member since Feb 2006
141 posts

re: Bitcoin will ruin people
quote:

your opinion has been noted. it's wrong



I have nothing against the idea of the digital currency with no ties to a government. Philosophically I lean in favor of many things 'anti government'. But the whole concept of a currency that becomes exponentially scarcer as more and more people adopt it is is essentially trading one ruling class (current government) for another (early adopters).


WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

re: Bitcoin will ruin people
quote:

But his point wasn't really so much about early adopters as it was about those who get in the game much later.


Which made absolutely no sense. In one sentence he says triple bypass surgery will cost .00002865 which means that 1 bitcoin will be worth a significant amount of money.

Then he says bitcoin will be worth zero.


What? Make up your mind, bro.



But even ignoring that disconnect, what's the point? He's saying that people that took a risk and adopted early will be better off than those that didn't? Sounds like how the world works to me.


jcole4lsu
Virginia Fan
The Kwisatz Haderach
Member since Nov 2007
27809 posts

re: Bitcoin will ruin people
quote:

But the whole concept of a currency that becomes exponentially scarcer as more and more people adopt it is is essentially trading one ruling class (current government) for another (early adopters).

only in a very extreme theoretical sense. in practice, the above quote is pure nonsense.


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jcole4lsu
Virginia Fan
The Kwisatz Haderach
Member since Nov 2007
27809 posts

re: Bitcoin will ruin people
quote:

He's saying that people that took a risk and adopted early will be better off than those that didn't? Sounds like how the world works to me.

ding, ding.

if i bought apple stock at $10 and sold it to you at $100 a few years later, nobody would have a problem with that.
then if you sold it to someone else at $101 the next day, guess what, still no problem.



ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
7603 posts

re: Bitcoin will ruin people
What is Apple's stock cutoff and what year will it take place?


PrimeTime Money
USA Fan
Houston, Texas, USA
Member since Nov 2012
12171 posts

re: Bitcoin will ruin people
I know nothing about bitcoin. Is the concept that it acts like real money without actually being real money?


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WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

re: Bitcoin will ruin people
quote:

What is Apple's stock cutoff and what year will it take place?


939.06 million shares

it's already been reached
This post was edited on 3/29 at 6:53 pm


Tigershatebama
LSU Fan
New Orleans
Member since Feb 2006
141 posts

re: Bitcoin will ruin people
quote:

Which made absolutely no sense. In one sentence he says triple bypass surgery will cost .00002865 which means that 1 bitcoin will be worth a significant amount of money.

Then he says bitcoin will be worth zero.


You need to read between the lines here man. The entire part that the 6 billion 'bitcoin peasants' will not allow this is how it becomes worthless. The largess of the world's polpulation will not tolerate having a few early adopters be essentially trillionaires and buy up the world's assets. They'll simply adopt some other form of currency, and thus make bitcoins worthless.


Tigershatebama
LSU Fan
New Orleans
Member since Feb 2006
141 posts

re: Bitcoin will ruin people
quote:

if i bought apple stock at $10 and sold it to you at $100 a few years later, nobody would have a problem with that.
then if you sold it to someone else at $101 the next day, guess what, still no problem.


And Apple produces goods that people want. Using bicoin to buy groceries is like trading Farmville crops for gallon of milk


joshnorris14
Florida Fan
Florida
Member since Jan 2009
21478 posts

re: Bitcoin will ruin people
If that is true then bitcoin isn't a ponzi scheme


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