Bitcoin is a Ponzi

[ORDER_66]

Dude is crazy

 

[beenz]

the problem with bitcoin is that it's not accepted most places. like you cannot buy groceries, pay your utilities, buy a house, car etc with bitcoin. if its not recognized as money by the majority of businesses you interact with, then I don't see the point here.

 

[ORDER_66]

the problem with bitcoin is that it's not accepted most places. like you cannot buy groceries, pay your utilities, buy a house, car etc with bitcoin. if its not recognized as money by the majority of businesses you interact with, then I don't see the point here.

But its changing slowly. shyt you can use the coinbase card to purchase goods directly with your own crypto

 

[O.Red]

the problem with bitcoin is that it's not accepted most places. like you cannot buy groceries, pay your utilities, buy a house, car etc with bitcoin. if its not recognized as money by the majority of businesses you interact with, then I don't see the point here.

That's a larger issue here than other places

In countries like Korea you can go in a gas station and pay with crypto

 

[O.Red]

But its changing slowly. shyt you can use the coinbase card to purchase goods directly with your own crypto

Still ain't a coinbase card

 

[Buckeye Fever]

the problem with bitcoin is that it's not accepted most places. like you cannot buy groceries, pay your utilities, buy a house, car etc with bitcoin. if its not recognized as money by the majority of businesses you interact with, then I don't see the point here.

There is a foreign gambling site I get paid by bitcoin when i win. I quickly convert that BULLshyt to cash.

Bitcoin is not an investment. Investing in shyt like oil, Apple energy companies, etc, is what I see as investments.

You can definitely make money with Bitcoin, but you gotta keep an eye on that shyt.

 

[Mowgli]

Bitcoin is a Ponzi

What is a Ponzi?

A Ponzi scheme, or "ponzi" for short, is a type of investment fraud with these five features:

1. People invest into it because they expect good profits, and
   
   
2. that expectation is sustained by such profits being paid to those who choose to cash out. However,
   
   
3. there is no external source of revenue for those payoffs. Instead,
   
   
4. the payoffs come entirely from new investment money, while
   
   
5. the operators take away a large portion of this money.

Investing in bitcoin (or any crypto with similar protocol) checks all these items. The investors are all those who have bought or will buy bitcoins; they invest by buying bitcoins, and cash out by selling them. The operators are the miners, who take money out of the scheme when they sell their mined coins to the investors.

Features 3, 4, and 5 imply that investing in bitcoin, like "investing" in lottery tickets, is a very negative-sum game. Namely, at any time, the total amount that all investors have taken out is considerably less than what they have put into the scheme; the difference being the amount that the operators have taken out. Thus the investors, as a whole, are always in the red, and their collective loss only increases with time.

The expected profit from investing in such a scheme is negative. While some investors who cash out may make a profit, that comes at the expense of other investors, who will lose more than their "fair" share of the general loss above.

Features 1 and 2 make the scheme a fraud, rather than simply a bad investment (or bad "musical chairs" gambling game). As a minimum, the operators should warn investors of the negative-sum character and negative expected profit. In the case of bitcoin (and all other cryptos), not only that does not happen, but there are thousands of promoters and "investment experts" who predict impressive price increases and/or claim that bitcoin will have massive uses in the future that would somehow make it valuable. Apart from the mendacity of those claims, those promoters never point out that such massive uses would not translate into revenue for the investors.

The observation that investing in cryptocurrencies is a ponzi scheme is not new or a cheap shot. Among many others, it was expressed in 2014 by economists Nouriel Roubini of NYU and Kaushik Basu of the World Bank (WB) and echoed by investment analyst David Webb in 2017 and by WB's president Jim Yomh Kim in 2018.

By that logic isn't the stock market a Ponzi scheme.

 

[ORDER_66]

Still ain't a coinbase card

What?!!?

 

[O.Red]

What?!!?

I'm saying I hopped on the waiting list months ago

Still ain't been chosen

 

[O.Red]

For sports gambling if you live in us. I see you said you use bovadA?

You got me mixed up with somebody else

 

[Thegospel]

Yea its official dudes in here lying. I just bought something with the crypto wallet. Yall misinformation knowitall coli dudes disgust me. Always lyin bout stuff. Broke selves. Smh

 

[O.Red]

Yea its official dudes in here lying. I just bought something with the crypto wallet. Yall misinformation knowitall coli dudes disgust me. Always lyin bout stuff. Broke selves. Smh

That's why you gotta just let them be know it all ass nikkas

 

[Thegospel]

That's why you gotta just let them be know it all ass nikkas

I won't lie when it come to real life social stuff I been stopped taken dudes serious but I kinda gave dudes benefit of the doubt with the financials cause dudes be talkin like they really know. This thread is embarassing though. I shoulda known they was lying about everything including knowing about financial info. Smh

 

[lib123]

By that logic isn't the stock market a Ponzi scheme.

Please read the Common Objections

• By that definition, stocks too are ponzis. No. Stocks have an external source of revenue, namely the profit that the company makes by selling its products and services to customers (not investors); and these profits eventually return to the investors through dividends or cash buybacks. In time, those profits are expected to exceed the amount invested, with a significant profit for all investors -- that is, they are expected to be positive-sum games. The market value of stocks reflects these expectations among investors. While some companies fail to achieve this goal, enough of them succeed to make stocks the favorite option of savvy investors.
  
  Companies often fail to distribute profits to investors for several years -- while they are starting up, or because of mistakes or unexpected external events. The market value of their stock will then depend on the expectations by investors of the company's ability to become profitable again, and of its subsequent profits.
  
  A company may also choose, with the approval of its stockholders, to reinvest its profit into growth. This is good for the investors because each becomes the owner of the same fraction of a bigger pie -- including hopefully bigger profits in the following years. And this growth generally makes the stock more valuable.

 

[Mowgli]

Please read the Common Objections

No. I'll just make money and play the game