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Bitcoin, Another Ponzi Scheme Or Is It For Real?


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Had a discussion with a friend last night about the recent rise in the price of Bitcoin. He mad the case that Bitcoin was as real as fiat money. I pointed out one big difference between Bitcoin and printed money is the printed money is backed by the assets of the country doing the printing, and also to some extent how big their military is. Bitcoin on the other hand is nothing more than a creation of a computer algorithm, with no tangible assets backing it.

There's also another troublesome aspect of Bitcoin. It's unregulated and the value is prone to manipulation. This article makes the case of why the the price is so volatile.
COIN CONUNDRUM Fears Bitcoin ‘whales’ could trigger crash with just 2,500 people controlling nearly HALF of market

So are there any true believers in Bitcoin out there that can make a case as to why it's nothing more than a Ponzi scheme?

Crypto crash: After nearing record, Bitcoin plunges | Crypto News | Al  Jazeera

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16 minutes ago, forcebwithu said:

Had a discussion with a friend last night about the recent rise in the price of Bitcoin. He mad the case that Bitcoin was as real as fiat money. I pointed out one big difference between Bitcoin and printed money is the printed money is backed by the assets of the country doing the printing, and also to some extent how big their military is. Bitcoin on the other hand is nothing more than a creation of a computer algorithm, with no tangible assets backing it.

There's also another troublesome aspect of Bitcoin. It's unregulated and the value is prone to manipulation. This article makes the case of why the the price is so volatile.
COIN CONUNDRUM Fears Bitcoin ‘whales’ could trigger crash with just 2,500 people controlling nearly HALF of market

So are there any true believers in Bitcoin out there that can make a case as to why it's nothing more than a Ponzi scheme?

Crypto crash: After nearing record, Bitcoin plunges | Crypto News | Al  Jazeera

Ponzi Scheme? IMHO, it doesen't come close to one as nobody is offering to pay you back with a profit after a period of time.

Like all fiat currency's, it has no intrinsic value, as it's only worth what a willing seller and a willing buyer agree to, with no governmental interference or control, which is a plus, not a negative.

As for manipulation, there is no bigger manipulator than Governments, who are committed to gradually inflating currency's until they run out of zero's.

 

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Whatever it is, it is probably personally my biggest missed investment opportunity. Just before Christmas of 2013, I was driving across Canada to spend some time with the family. I was somewhere about 15 hours west of Montreal, there’s only one town every 50 miles or so. Have the radio on, and there are no FM music stations on. So I’m stuck listening to some AM news, and there were some good documentaries playing. One was of this new radical payment thing........BItcoin. Never gave it a second thought, and I’m sure I would not even have known where to buy some. I was swimming in cash at the time, the cab business was very good. Didn’t know what to do with my money TBH, and made many poor decisions between then and now. Everything with money is risk versus reward, and with that in mind, $1,000 or even $10,000 was nothing for me at the time, and would be worth several million $ today......I can’t keep up because BTC keeps breaking records, and our dollar got weaker, which made it return even more. 
 
People can say it’s a Ponzi scheme, it’s only being used by criminals on the DarkWeb, etc......but for me, it will shall forever remain “the one that got away”. Just based on how cheap it was when I first heard about it

Oh and after a good night’s sleep, I found out Vito Rizzuto, the Godfather of the Canadian mob, had passed away.....funny how we remember these things 

Edited by Golfingboy
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2 hours ago, Golfingboy said:

This shows almost 100x growth......and that’s not even going back to its beginnings in 2010, when they were a dime apiece!

Actually, in the beginnings, the price was less than a penny. One of the early transactions was someone offered 10,000 coins for a Pizza delivery (about $20US$)

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3 hours ago, Mrmango said:

Ponzi Scheme? IMHO, it doesen't come close to one as nobody is offering to pay you back with a profit after a period of time.

Like all fiat currency's, it has no intrinsic value, as it's only worth what a willing seller and a willing buyer agree to, with no governmental interference or control, which is a plus, not a negative.

As for manipulation, there is no bigger manipulator than Governments, who are committed to gradually inflating currency's until they run out of zero's.

Ponzi was a poor choice of words on my part. Perhaps a better word would have been bubble.

What I fail to see or understand with Bitcoin is what is its utility. I know people can use it to purchase goods and services, but your post about the purchase of a pizza using Bitcoin is a good example why people would be hesitant to use it as currency. Eleven years later the coin that was spent to buy a $200 pizza is now worth $332 million.

 

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4 hours ago, Mrmango said:

Like all fiat currency's, it has no intrinsic value, as it's only worth what a willing seller and a willing buyer agree to, with no governmental interference or control, which is a plus, not a negative.

Governments have been printing money wholesale, particularly during the pandemic. That is why there is a worry that the USD and other fiat currencies might collapse.

You can't do that with Bitcoin, which is why people have been buying into it in recent months. 

In years gone by, there would have been a spike in the gold price. However, it seems the big US banks are able to manipulate the gold price, plus China is believed to be sitting on a very large, undisclosed quantity of it, so it is not in favour. 

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2 hours ago, Bazle said:

Governments have been printing money wholesale, particularly during the pandemic. That is why there is a worry that the USD and other fiat currencies might collapse.

You can't do that with Bitcoin, which is why people have been buying into it in recent months. 

In years gone by, there would have been a spike in the gold price. However, it seems the big US banks are able to manipulate the gold price, plus China is believed to be sitting on a very large, undisclosed quantity of it, so it is not in favour. 

Or not....lol...

https://news.bitcoin.com/83-tons-fake-gold-bars-china-scandal/#:~:text=One of China's largest gold,from 14 Chinese financial institutions.

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3 hours ago, dcfc2007 said:

I wish I had bought in 10 years ago when pete from the beer garden was people to do so on the old secrets forum.

He was also giving away fractions of a coin to get people comfortable using it.

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27 minutes ago, forcebwithu said:

He was also giving away fractions of a coin to get people comfortable using it.

I wonder how many people took up his advice, I think BTC was around 10 dollars then, I'm pissed I never.

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Chart lifted from Shares Magazine, from BOA research- the graph's scale accentuates the rise but you get the point(there's an obvious error on the  X axis too)

image.png

Don't feel Bitcoin is a scam but I'm sure digital currencies will continue to be an attractive vehicle for purveyors of Ponzi Schemes, OneCoin being an early example

https://www.bbc.co.uk/news/stories-50435014

I too can remember when the Beer Garden offered the option to pay in BTC, and not taking it seriously🤑

Am confident if I ever making to LOS again, someone, most likely a Scouser will offer me a once in a lifetime crypto investment.

Edited by Lemondropkid
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5 hours ago, dcfc2007 said:

I wish I had bought in 10 years ago when pete from the beer garden was people to do so on the old secrets forum.

Actually, Pete was the one who got me started investing in coin.

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8 hours ago, Bazle said:

Governments have been printing money wholesale, particularly during the pandemic. That is why there is a worry that the USD and other fiat currencies might collapse

That is one possibility, but it is certain that Governments will gradually inflate their currency as they have since they changed it to fiat currency. The US Fed has a goal of 2% inflation, which means that in 10 years the currency will be worth half what it is today.

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