Bitcoin is a Ponzi

[Fly]

Like I said when you posted this in the other thread, we know, we’ve been known, no one cares.

 

[lib123]

Why Has Gold Always Been Valuable?




Gold has unique physical chemical characteristics that made it very valuable. Gold is the most maleable and ductile of all the metals. ... Gold has the highest corrosion resistance of all the metals and it is corroded only by a mixture of nitric and hydrocloric acid. Gold is a noble metal because it does not oxidize.May 14, 2013

Of course, I was just citing jewelry as an example of a cash-flow generating characteristic of Gold. There are several.

 

[Red11]

It was used as a medium exchange for dark web activities when it was pennies. Have dark web activities increased by such an extent since then to justify current valuation?

Halving of supply happens every 4 years or so. Deflationary tactic.
Less profit per block mined increases prices.

Bitcoin Halving: What You Need to Know

 

[the bossman]

No it doesn't. Mining is an arbitrary barrier to securing bitcoin. It's not an external source of revenue used to payoff investors. Current investors receive payoff from new investors. Crypto is a non-cashflow generating asset.

How is it not? I can set up a mining rig today and secure outside payoff i.e. block rewards. Its not a business. I can use it as currency.

This is what I mean. Breh hasn't even taken the time to understand how bitcoin actually works.

You receive btc as a reward from mining akin to the same type of reward companies get from mining gold. The ponzi argument is already flawed

 

[lib123]

When you refer to Bitcoin specifically, which has proven utility and widespread adoption as a digital currency, it hurts your argument.

What’s your definition of proven utility and widespread adoption? Vast majority of people haven’t adopted crypto in their daily lives. The value has derived from people acquiring in the anticipation of rising value, hence the ponzi reference.

 

[Red11]

It was used as a medium exchange for dark web activities when it was pennies. Have dark web activities increased by such an extent since then to justify current valuation?

It has moved to #Monero Dark web markets are larger than silk road ever was.

 

[the bossman]

I said bitcoin hasn’t demonstrated that it’s a hedge against inflation during a prolonged inflationary period. Bitcoin beat inflation when every asset class was beating inflation because inflation was extremely low. But I guess you’re more knowledgeable about financial markets than Nassim Taleb.

That's the thing. He understands financial markets but doesn't really understand bitcoin and probably doesn't care to just like you wouldn't be spouting that nonsense about mining being a barrjer.

It's similar to how Buffet missed the boat on AMZN/GOOGL. He said he only invests in things he understands. And tech was not one of those things he understood .

 

[lib123]

This is what I mean. Breh hasn't even taken the time to understand how bitcoin actually works.

You receive btc as a reward from mining akin to the same type of reward companies get from mining gold. The ponzi argument is already flawed

That mining argument is flawed. Crypto mining isn’t real mining, it doesn’t lead to the creation of a finished product that generates cash flows from being sold. Companies don’t just get paid from mining Gold. They get paid by selling it to someone who processes the Gold or processing it themselves into a product. Gold’s value derives from being processed and used as a good or store of value.

 

[Red11]

This is what I mean. Breh hasn't even taken the time to understand how bitcoin actually works.

You receive btc as a reward from mining akin to the same type of reward companies get from mining gold. The ponzi argument is already flawed

Bruh it's crazy. Loud and wrong.

 

[lib123]

Like I said when you posted this in the other thread, we know, we’ve been known, no one cares.

Lol I respect the honesty. People can make money of Ponzi’s, but people are pretending it’s more than it is.

 

[High quality poster]

No one is keeping there money in something speculative for 13 years

it pointless to cite past performance. Soon as the price go down people sell because there’s no real explanation for movement of the price

 

[Red11]

That mining argument is flawed. Crypto mining isn’t real mining, it doesn’t lead to the creation of a finished product that generates cash flows from being sold. Companies don’t just get paid from mining Gold. They get paid by selling it to someone who processes the Gold or processing it themselves into a product. Gold’s value derives from being processed and used as a good or store of value.

THIS IS WILD. It does exactly this....I mine it sell it to you to use as currency...

 

[lib123]

Bruh it's crazy. Loud and wrong.

Lol ok and I guess all the traders, hedge fund managers, and asset managers who’ve collectively made billions saying variations of the same thing are crazy too. I guess y’all know more about bubbles, finance and currencies than people like Nassim Taleb. And the successful financial people like Mike Novogratz pushing crypto have a large vested interest in the masses buying more so they can cash out

 

[Red11]

No one is keeping there money in something speculative for 13 years

it pointless to cite past performance. Soon as the price go down people sell because there’s no real explanation for movement of the price

This family sold everything they owned to invest in Bitcoin when it was $900

Good God.

 

[Tres Leches]

THIS IS WILD. It does exactly this....I mine it sell it to you to use as currency...

exactly it can serve as currency in countries with hyperinflation (ex:venezuela) and is also a store of value