• zaph@sh.itjust.works
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    10 months ago

    If this is the definition of a ponzi scheme literally every currency could be considered a ponzi scheme. Why is the US dollar worth anything? Because enough people agree it is so if they stop agreeing it becomes worthless pieces of paper, or a ponzi scheme.

    • Ptsf@lemmy.world
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      10 months ago

      The US dollar has backing. It’s the faith and credit of the American government. It’s printed right on the currency. You could argue that bitcoin has this as well in it’s decentralized investment channel, but that’s where I’d then point out the fact that the US dollar does not have a runaway unsustainable cost built in. Bitcoin will always eat itself in energy costs. This will always be the case while the coin remains proof of work, which will also always be the case for a litany of reasons. You are trying to compare them at a small scale, but you need to think about the larger picture if you want to extrapolate out over the likely decades it will take for bitcoin to faulter.

      • zaph@sh.itjust.works
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        10 months ago

        None of that makes your definition of a ponzi scheme any more right. Crypto isn’t a ponzi scheme, it’s just really easy to turn into one just like any other investment.

        • Ptsf@lemmy.world
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          10 months ago

          You’re wrong. An inherently draining investment that has no realized value for early investors aside from people putting money in and that will one day die off by design is a Ponzi scheme. Also you need to understand that I am not speaking about crypto in general, which is concerning you don’t make the distinction, because they’re not all even remotely the same. You’re out of your damn mind if you think you can refer to Etherium or a Stablecoin in the same breath of legitimacy as bitcoin . Do not mistake the two, they’re not the same.

          • zaph@sh.itjust.works
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            10 months ago

            Here you go again assuming just because something is a bad investment it’s a ponzi scheme.

            Also you need to understand that I am not speaking about crypto in general, which is concerning you don’t make the distinction, because they’re not all even remotely the same. You’re out of your damn mind if you think you can refer to Etherium or a Stablecoin in the same breath of legitimacy as bitcoin .

            This is you missing my point entirely.

            Early investment in bitcoin meant you could buy things with bitcoin. Not a ponzi scheme.

            • Ptsf@lemmy.world
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              10 months ago

              It’s actually you missing the point entirely. Just because you can trade your shares in it does not make it a legitimate investment, nor do I believe all investments need generate revenue. Investment is risk and loss is part of that.

              Now, since you’re inclined to continue to be deluded, from the Wikipedia definition: “Named after Italian businessman Charles Ponzi, this scheme misleads investors by either falsely suggesting that profits are derived from legitimate business activities (whereas the business activities are non-existent), or by exaggerating the extent and profitability of the legitimate business activities, leveraging new investments to fabricate or supplement these profits”.

              Bitcoin is not a currency. It’s design does not allow for it to be one longterm. It has a built in expiration date and cash flow drain with no legitimate business activity that generates value aside from new investors. The only way one generates value from bitcoin is new investors. The only way your coin is worth more money is new investors. That is what makes it a Ponzi scheme. Just because you can trade shares of your Ponzi scheme to others for their money does not make it an investment.