A short note on why bitcoin is not a Ponzi scheme.
A Ponzi scheme fails when you run out of people to sell your Ponzi scheme to. It’s a directional linear flow of money. In the case of Bitcoin, however, the coins remain in circulation like a currency. Therefore, I reject the idea that “when all the coins have been mined bitcoin would crash”. Such a crash occurs when there is no scope for further growth, which would mean that there would be no reason to buy those coins and holding it would be useless because there would be no one willing to buy it at a higher price. This would result in a crash. However, in reality, Bitcoin would always remain in circulation and would serve as a stronger currency in comparison to other fiat currencies. So, people would want to buy it and stay 100% in it, so that they can retain their purchasing power and spend using this currency rather than any other fiat currency. Moreover, there will be cases, like machine to machine transaction, where spending using Bitcoin would be much more convenient. It would also be lucrative as a currency for trade because it would facilitate cost cutting. This demand for circulation would keep its price rising even after all of them have been mined.
A finer grained look into price fluctuation would depend on the marginal utility and time preference.
Posted using Partiko iOS
Thank you so much for being an awesome Partiko user! We have just given you a free upvote!
The more Partiko Points you have, the more likely you will get a free upvote from us! You can earn 30 Partiko Points for each post made using Partiko, and you can make 10 Points per comment.
One easy way to earn Partiko Point fast is to look at posts under the #introduceyourself tag and welcome new Steem users by commenting under their posts using Partiko!
If you have questions, don't feel hesitant to reach out to us by sending us a Partiko Message, or leaving a comment under our post!
Congratulations @valkyr! You have completed the following achievement on the Steem blockchain and have been rewarded with new badge(s) :
You can view your badges on your Steem Board and compare to others on the Steem Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPTo support your work, I also upvoted your post!
Vote for @Steemitboard as a witness to get one more award and increased upvotes!