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by cwkoss 1295 days ago
People who don't understand what ponzi schemes are love calling crypto a ponzi scheme.
2 comments

Lol. Tons of crap coins, fake stable coins, grifters launching ICOs, SBF, bridges getting hacked, being able to print a coin and then get randoms to buy it. Coins named after dogs that mean or reference nothing.

Some 20 years? in and what value has the blockchain provided? What is it being used in that has changed the world? Crypto bulls are all the same: Hayek acolytes hell bent on currency that isn’t fiat.

It is a Ponzi-scheme: it only works if you can find another putz to buy a coin.

Also only the early “investors” made any money in crypto. Just like in a Ponzi scheme. ;)

Again back to the original post though good on this “company” for doing right by its employees.

I regret to inform you that none of those things are ponzi schemes. Many of em are certainly fraud, but a ponzi scheme they are not.

Your incorrect definition of ponzi scheme is essentially 'basic market dynamics in an inflationary economy' and would include the vast majority of financial products in the world, including the ones your probably trust.

Stocks only work if you can find another putz to buy it.

People who are early in any stock take money from later investors.

Also, anyone who purchased bitcoin in the first 12 of the 14 years it has existed is in the green. I think "only early investors" is a pretty superlative way of expressing that.

Stocks give you dividends from the underlying company. You reap a realized return (for most stocks) even if you never sell.
People who profit from Ponzi schemes love pretending that their returns represent real value from the economy.
Well said. This is what I was trying to say and failing to.