Wikipedia defines a ponzi scheme in the following way: Operators of Ponzi schemes usually entice new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent.
The perpetuation of the high returns requires an ever-increasing flow of money from new investors to sustain the scheme. Bitcoin is not a Ponzi scheme. It's a true innovation in computer science and solves a well known problem called the Byzantine Generals problem. It's a new type of monetary system based on mathematics and rare numbers.
That's why it's a game changer. That's why we see million investments to bitcoin startups every week. It has nothing to do with a Ponzi scheme. I'm glad you all seem to agree on my main claim for this debate which was that bitcoin is not a Ponzi scheme. Is bitcoin a bubble then? It's possible of course. I guess it depends how much people will value money that cannot get debased or confiscated by goverments. I value inflation proof money rather highly.
Then again, bitcoin is certainly not for everyone. Those who are happy with the current monetary policies of their goverments should go on as usual I guess. We all agree money has a value, what value has the money?
Were this value comes from? It resist market because it is not linked to it, he has no value It would have value if everybody agrees it has value, estipulate a price for everything it is "in" the system and create a mechanism to put value in and out I believe in bitcoins potencial and it can become a true virtual money if it solves 3 main problems 1- Alread described above 2- bitcoins mining is wrong The person receive bitcoins for working for the bitcoins system is valid But bitcoin not ponzi schemes system creates money without putting value into it is the wrong part When central banks create money, all the existing money lose value, so it is like they are robbing from everybody to put value in new money watch zeistgeist Bitcoin not ponzi schemes the system is right and no value is really created or lost 3- Next post.
The whole concept of money is absurd and more absurd is the currency system. The money should be used to measure the economic value of something, just like we use metre for measurement of length but we don't print metre coinsor for measurement of weight we have grams and kilograms but we don't print gram and kilogram coins.
Why can't we have barter bitcoin not ponzi schemes or the hybrid economy system were money and barter will coexists? If you take money off then problems like immediatism of trade, diference bitcoin not ponzi schemes value in a trade and have to make trades only with people who has the goods you want would have to be bitcoin not ponzi schemes in other way Trade happens bitcoin not ponzi schemes both people wants, so both has evaluated the both exchangeable and agree that its a win for each of them.
This exemplifies well a key concept behind the entire trade system, that the exchangeable has diferent values for each one. The more close to measurement of value is the market-value of something, that is made easier by money. Historically, bitcoin not ponzi schemes the way-way back, humans probably lived in communal family groups with all resources shared and stored in a central storehouse.
Barter probably only occurred between family groups. Then we settled down into villages of family groups. As the village of one family group grew into many very extended family groups, people began wanting to keep track of what their family group had put into central storage, as they no longer wanted bitcoin not ponzi schemes be communal.
So, tokens began being used, and were the first money. Soon, money was being used for trade. Study of stone age cultures that we encountered post creation of the written language indicate barter likely bitcoin not ponzi schemes happened on a large scale between individuals. We probably went straight from barter between tribal leaders, to money being used between families bitcoin not ponzi schemes an extended village, to a bitcoin not ponzi schemes market. The problem with commodity money involves lending.
From the early days of society, lending created a boom and bust cycle. A rich person would start lending, increasing the money in circulation, creating inflation This is why much of the ancient legal codes revolved around issues like counterfeiting the bitcoin not ponzi schemes, ownership, lending regulations, repayment terms, interest rates, legal tender, etc.
Post medieval creation of modern banking, we struggled for centuries to operate an economy with a mix of commodity, bank note and even government script currencies co-existing. We suffered wild swings in the boom and bust cycle. People were willing to accept bank note money in good times, but rushed into commodity as soon as a dark could appeared.
Gold standard was a short-term attempt to unify commodity and bank note money, and was a dismal failure. Now the world has abandoned commodity money and unified on bank note money. There are flaws, but I thin those come from imbalances. You nailed it, Raymond! Yes -Is bitcoin bubble an economic bubble involving over-valued stock?
Sorta Bitcoin is a bubble. It's just a matter of time until it bursts. On what do you base your claim that the current market prices of bitcoin bitcoin not ponzi schemes unsustainable? This year we have seen massive interest towards bitcoin from wall street. So I'm rather curious about the basis for your claim of over valuation.
I agree that the definition of Ponzi scheme doesnt apply to bitcoins, but Does bitcoin pay returns to its investors? Yes, You invest in machine power and gets your bitcoins. Does bitcoin require an bitcoin not ponzi schemes increasing flow of money to sustain it? Yes, Every time more machine power capacity. Much of the schemes give good returns to the initial investors, but eventually get loose from the source, this is usefull to break loose from the blame too.
Even if it was used for that in the begining, now it cannot be used that way anymore. But i beliave bitcoins bitcoin not ponzi schemes a good monetary initiative, but its still being doing the wrong way. No it is not a ponzi but it's a very clever idea. All currency is a ponzi scheme as long as taxes exist bitcoin is the digital equivalent of bearer bond, nothing more. Keep spreading the truth then, into the psyche's of as many as you can. They need to hear the message to override the brainwashing they have pumped into them virtually every minute of the day.
And teach it, help others learn how to understand it and how to use it. Like me for instance. Tom Hogshead PhD 0. I had to laugh pretty hard. Did you research this bitcoin not ponzi schemes at all before posting that link? What exactly are you trying to say?
RTFM. Harga bitcoin terus meningkat pascra CME Group yang bersiap menawarkan derivatif bitcoin. This paper suggests three methods that better ensure the security of such critical electronic data. After exploring several blockchain libraries, we found refactoring my previous Bancor front-running code to work best.