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Why bitcoin is worse than a Madoff-style Ponzi scheme
Posted on 12/22/21 at 4:31 pm
Posted on 12/22/21 at 4:31 pm
https://www.ft.com/content/83a14261-598d-4601-87fc-5dde528b33d0
or
https://archive.md/sQhtq
or
https://archive.md/sQhtq
quote:
In its cashflow, bitcoin resembles a penny-stock pump-and-dump scheme more than a Ponzi scheme. In a pump-and-dump scheme, traders acquire basically worthless stock, talk it up and perhaps trade it among themselves at rising prices before unloading it on to those drawn in by the chatter and the price action. Like the pump-and-dump scheme, bitcoin taps into the pure desire for capital gains. Buyers cannot stand the sight of friends getting rich overnight: they suffer an acute fear of missing out (FOMO). In any case, bitcoin makes no promises and cannot end as a Ponzi scheme ends.
...
To conclude, an economic analysis of bitcoin must recognise its uniqueness in the history of manias. As an object of speculation, bitcoin is unprecedented in the degree to which there is no there there. This post-modern mania features big prices for entries on nobody’s spreadsheet. A zero-coupon perpetual has arrived not as a joke but as a trillion dollar asset. Unlike a Ponzi scheme, bitcoin cannot end in a run.
In a crash, the holders of bitcoin will collectively have lost what they have paid the miners for their bitcoin. This sum may be not far from the sum originally invested with Madoff, after accounting for inflation. But bitcoin holders will have no one to pursue to recover this sum: it will simply have gone up in smoke, a social loss. The holders of bitcoin would then only wish it had been a Ponzi scheme.
This post was edited on 12/22/21 at 4:34 pm
17
Posted on 12/22/21 at 4:34 pm to Big_Sur
Y'all blee dat?
Posted on 12/22/21 at 4:35 pm to Big_Sur
that sounds like it was written by the Federal Reserve. They cant stand the thought of a competing fiat currency that they cant control.
Posted on 12/22/21 at 4:42 pm to Ping Pong
6 figure BTC in 2022!
Posted on 12/22/21 at 5:18 pm to Big_Sur
I hope Biden makes cringeto illegal
I’d vote for him if that’s what he promised
I mean I own cringeto myself but I’m tired of hearing about it
I’d vote for him if that’s what he promised
I mean I own cringeto myself but I’m tired of hearing about it
Posted on 12/22/21 at 5:21 pm to Big_Sur
Bitcoin also made hundreds, maybe thousands, of MILLIONAIRES!
Posted on 12/22/21 at 5:26 pm to oldskule
That’s nice. Those dorks will always have money for their rosacea medicine and asthma inhalers
Posted on 12/22/21 at 5:27 pm to Big_Sur
What year is it
Posted on 12/22/21 at 5:30 pm to Big_Sur
insert :okay, boomer: here
this title reads like a thread title from 2017
this title reads like a thread title from 2017
This post was edited on 12/23/21 at 11:00 am
Posted on 12/22/21 at 5:58 pm to Big_Sur
The real Ponzi scheme is the USD. They are printing the hell out of it. Only morons keep more than the bare minimum in banks.
Posted on 12/22/21 at 6:00 pm to Big_Sur
Fundamentally, they are nothing alike.
Posted on 12/22/21 at 6:04 pm to tenderfoot tigah
Let’s not forget shite like social security. Our entire government is a Ponzi scheme and when it goes what’s that money you feared losing in bitcoin going to be worth because of the fear of a Ponzi scheme. You have to have some risks in life to make real gains
Posted on 12/22/21 at 6:28 pm to Big_Sur
What makes gold worth something? For that matter, what makes the dollar worth something? Yeah, sure, there are some minor industrial uses for gold, but otherwise those two things have value because people say they have value and people believe they have value. As people lose the belief that they have value, they turn to other things that can carry value. That's bitcoin in this case.
Posted on 12/22/21 at 6:56 pm to BottomlandBrew
My conversation with crypto owners ends when I ask them how much their coin/crypto is worth.....and they answer in X dollars.
Posted on 12/22/21 at 6:58 pm to Big_Sur
how much did your fiat bags deflate this year baw
Posted on 12/22/21 at 7:09 pm to Big_Sur
I hope I'm completely wrong about this because I have alot of friends and family with money in bitcoin, but I do suspect bitcoin will collapse eventually.
ETA:
As far as how or when or why, it's impossible to say. If it does happen, everybody will be Captain Hindsight'ing it just like every other market collapse ever.
ETA:
As far as how or when or why, it's impossible to say. If it does happen, everybody will be Captain Hindsight'ing it just like every other market collapse ever.
This post was edited on 12/22/21 at 7:12 pm
Posted on 12/22/21 at 8:24 pm to rocket31
Seems like a very drastic decline in Bitcoin gains based on that chart. Would next year’s expectations be in the 20-50% range?
Posted on 12/22/21 at 8:47 pm to KCRoyalBlue
How would you like them to answer?
I can tell you how much that dollar in your pocket is in satoshis, if you’d like
I can tell you how much that dollar in your pocket is in satoshis, if you’d like
Posted on 12/22/21 at 9:57 pm to Big_Sur
When does the Ponzi scheme collapse? If you think it is one, it can't go on forever right? 12 years running now, when does it all go to zero?
$48,500 at the time of posting for easy reference.
$48,500 at the time of posting for easy reference.
Posted on 12/22/21 at 10:03 pm to KCRoyalBlue
quote:You obviously aren't a crypto person so why would those people tell you their 2 bitcoin are worth 2 bitcoin when you associate with dollars? If dollars are the main form of valuing things where you live, it makes sense for crypto to be valued in dollars.
My conversation with crypto owners ends when I ask them how much their coin/crypto is worth.....and they answer in X dollars.
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