Current Events > Bitcoin is just a modern, decentralized ponzi scheme

(+) Yeah! (+)

-The founder of bitcoin set aside ~1 million bitcoin for himself at the onset.
-Bitcoin has no intrinsic value, the transaction fees make it unstable as an actual currency, and the government would make it illegal for businesses to accept/convert to USD if it ever actually competed with the dollar.
-Given the fact that it is inherantly worthless, the price surge is 100% dependent on new "investors" buying in so that old "investors" can get paid out (ie a ponzi scheme).
-Eventually, new money will stop pouring in, and everyone will rush to the exit at once to lock in their profits. With far more sellers than buyers, the price will collapse. Few people will be able to actually get out (most likely institutional traders).
-Bitcoin is a game of musical chairs. Just keep playing and hope that you dont get fucked when the music stops.

CiIantro posted...

Bitcoin has no intrinsic value,

nothing has intrinsic vaue

AlternativeFAQS posted...

CiIantro posted...

Bitcoin has no intrinsic value,

nothing has intrinsic vaue

ok

AlternativeFAQS posted...

CiIantro posted...

Bitcoin has no intrinsic value,

nothing has intrinsic vaue

that's not true at all. food, water and shelter (aka elements of survival) are the definition of it with respect to humans. aka there will ALWAYS be a value in food as long as humans need it to survive.
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Giant_Aspirin posted...

that's not true at all. food, water and shelter (aka elements of survival) are the definition of it with respect to humans. aka there will ALWAYS be a value in food as long as humans need it to survive.

what I mean is things cost whatever people will pay. there is no set value to anything.

sounds very much like capitalism, except participation in capitalism is largely not optional
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AlternativeFAQS posted...

Giant_Aspirin posted...

that's not true at all. food, water and shelter (aka elements of survival) are the definition of it with respect to humans. aka there will ALWAYS be a value in food as long as humans need it to survive.

what I mean is things cost whatever people will pay. there is no set value to anything.

You clearly dont understand what "intrinsic value" means.

So, basically you're saying that Bitcoin is the same as gold?
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Rob Cesternino posted...

So, basically you're saying that Bitcoin is the same as gold?

Gold has intrinsic value. It has industrial applications, is a great conductor of electricity, and can be used to make jewelry. Bitcoin is literally useless.

Rob Cesternino posted...

So, basically you're saying that Bitcoin is the same as gold?

Gold is a valuable resource that has other uses besides being worth money.
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Tmaster148 posted...

Rob Cesternino posted...

So, basically you're saying that Bitcoin is the same as gold?

Gold is a valuable resource that has other uses besides being worth money.

Bitcoin fails at even being used as money. High transaction fees make it useless for small transactions, the extreme volatility makes it useless as any sort of standard measure of value, and the government will ban conversion to USD/business acceptance in the unlikely event that it ever actually gains traction.

The difference between gold and bitcoin: gold is real
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tote_all posted...

I like it when people who don't get it try to argue about it, it's fun to watch.

2edgy4me

TC, do you feel this way about all crypto or just bitcoin?
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CiIantro posted...

Tmaster148 posted...

Rob Cesternino posted...

So, basically you're saying that Bitcoin is the same as gold?

Gold is a valuable resource that has other uses besides being worth money.

Bitcoin fails at even being used as money. High transaction fees make it useless for small transactions, the extreme volatility makes it useless as any sort of standard measure of value, and the government will ban conversion to USD/business acceptance in the unlikely event that it ever actually gains traction.

Well bitcoin certainly was used for shady illegal things on the dark web, because it was a great way to pay under the table. But with the recent IRS asking for records of users with transactions of $20K+ that might hurt the one thing bitcoin was somewhat good for.
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CiIantro posted...

Tmaster148 posted...

Rob Cesternino posted...

So, basically you're saying that Bitcoin is the same as gold?

Gold is a valuable resource that has other uses besides being worth money.

Bitcoin fails at even being used as money. High transaction fees make it useless for small transactions, the extreme volatility makes it useless as any sort of standard measure of value, and the government will ban conversion to USD/business acceptance in the unlikely event that it ever actually gains traction.

you understand it's only been around like 6 years? and it's not even mainstream yet? you get that, right?

Crayon_Lover posted...

TC, do you feel this way about all crypto or just bitcoin?

All crypto. The technology itself has useful applications, but cryptocurrencies themselves will ultimately prove worthless. It is all hype driven. Most people buying into bitcoin at this point dont even know what it is. Paris Hilton literally endorced a recent ICO. It that isnt a sign of a bubble, I dont know what is.

AlternativeFAQS posted...

CiIantro posted...

Tmaster148 posted...

Rob Cesternino posted...

So, basically you're saying that Bitcoin is the same as gold?

Gold is a valuable resource that has other uses besides being worth money.

Bitcoin fails at even being used as money. High transaction fees make it useless for small transactions, the extreme volatility makes it useless as any sort of standard measure of value, and the government will ban conversion to USD/business acceptance in the unlikely event that it ever actually gains traction.

you understand it's only been around like 6 years? and it's not even mainstream yet? you get that, right?

You understand that if it ever does become mainstream, the government will ban business acceptance and conversion to USD, right? You get that, right? Or do you think the federal reserve will just call it a day and close up shop?

AlternativeFAQS posted...

CiIantro posted...

Tmaster148 posted...

Rob Cesternino posted...

So, basically you're saying that Bitcoin is the same as gold?

Gold is a valuable resource that has other uses besides being worth money.

Bitcoin fails at even being used as money. High transaction fees make it useless for small transactions, the extreme volatility makes it useless as any sort of standard measure of value, and the government will ban conversion to USD/business acceptance in the unlikely event that it ever actually gains traction.

you understand it's only been around like 6 years? and it's not even mainstream yet? you get that, right?

You do realize a good currency will be mainstream. Since the more vendors that accept it the more useful as a currency it is.
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Tmaster148 posted...

used for shady illegal things on the dark web, because it was a great way to pay under the table

You're talking about cash, right?
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Rob Cesternino posted...

Tmaster148 posted...

used for shady illegal things on the dark web, because it was a great way to pay under the table

You're talking about cash, right?

No. Although cash has the same use yes. But you could do online transactions with bitcoin for activities and the government wouldn't know about, because there was no one reporting the transaction.
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The ironic thing is that the people who have been enriched the most by bitcoin are the early adopters who were using it for illegal transactions.

Tmaster148 posted...

Rob Cesternino posted...

Tmaster148 posted...

used for shady illegal things on the dark web, because it was a great way to pay under the table

You're talking about cash, right?

No. Although cash has the same use yes. But you could do online transactions with bitcoin for activities and the government wouldn't know about, because there was no one reporting the transaction.

Sounds like we need to outlaw cash then, because it can be used for shady, illegal things that the government wouldn't know about.
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Tmaster148 posted...

You do realize a good currency will be mainstream. Since the more vendors that accept it the more useful as a currency it is.

Right. Once it becomes mainstream, it will be legitimized, more people will accept it and it will become less volatile.

Rob Cesternino posted...

Tmaster148 posted...

Rob Cesternino posted...

Tmaster148 posted...

used for shady illegal things on the dark web, because it was a great way to pay under the table

You're talking about cash, right?

No. Although cash has the same use yes. But you could do online transactions with bitcoin for activities and the government wouldn't know about, because there was no one reporting the transaction.

Sounds like we need to outlaw cash then, because it can be used for shady, illegal things that the government wouldn't know about.

I never said anything about outlawing bitcoin.
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AlternativeFAQS posted...

Tmaster148 posted...

You do realize a good currency will be mainstream. Since the more vendors that accept it the more useful as a currency it is.

Right. Once it becomes mainstream, it will be legitimized, more people will accept it and it will become less volatile.

I like how you ignored my post.

Oh good. So you agree that it has value then?
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Rob Cesternino posted...

Oh good. So you agree that it has value then?

Bitcoin is worth what people are willing to pay sure. But it's a bubble because a lot of people are hyping it up. Once the hype dies it'll pretty much be worth nothing unless something major changes, because it has very little practical uses as a currency.
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tote_all posted...

CiIantro posted...

is a great conductor of electricity,

Doesn't justify it's price.

CiIantro posted...

can be used to make jewelry

Which also has no intrinsic value.

I like it when people who don't get it try to argue about it, it's fun to watch.

This is true, but that first "it's" should be "its." Just mentioning that in case it wasn't just an unnoticed autocorrect fuck up.
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