Bitcoin - Ponzi scheme, a pyramid scheme.
I don't know English, only plans to start studying it, so I write in Russian and I translate with online translator.Please, I don't really blame)Can be the meaning of certain phrases will be distorted.
Many of you have heard the statement to the bitcoin and cryptocurrency market, what is a pyramid scheme, in contrast to Fiat currencies not backed by nothing? The growth rate depends on the popularity and the willingness of people to consider bitcoin as a currency or asset. The more suckers, the higher its price. I heard, and on TV.
But is it really?
First you need to understand what a financial pyramid is and what her symptoms. And it is quite difficult. As per the laws of different countries the signs are different. And most of the laws says that even the combination of features could not say unequivocally that in front of you is a pyramid scheme. The investigator will understand.
Most are found through search queries characteristics we can conclude that the financial pyramid will be the economic model that exists due to the constant new influx of Finance directly from people. The distribution of Finance is through the administration. A pyramid scheme has a saturation point, when the influx of people is low or decreases, the allocation of funds in right quantity at all lacking. This is the endpoint of existence.
Is bitcoin organization in which the allocation of funds is through the administration? No. Bitcoin is a decentralized organization.
Is there an endpoint? Yes. 21 million bitcoins. And if they are in the hands of people who do not want to sell them, then it will be the final. Not only those in which the collapse of the pyramid. First, it is an ideal picture, which may not be. Second, the last bitcoin will be mined in the year 2140, so there are still more than 120 years. And third, obviously people will not lose their investment.
Yes, the material bitcoin unsecured. A dollar provided? To gold a long time is not binding. GDP? Army? In a sense, Yes, but what does it change? Any money there is one important, maybe the most important thing is the number of people willing to use them. The belief that they will not lose value after a certain period of time. Here only States can currency be manipulated contrary to the expectations of the people. Of course, Fiat money there is another infrastructure that significantly more infrastructure scriptaction. Growing the stock market is still very young, a lot of things. This also is the question of volatility.
Well, well. But if gold compare? After all, bitcoin has been called "digital gold". And it is with gold , not Fiat currencies, it is logical to compare. Than gold secured..?
About bitcoin I'd say it's something between Forex, stocks and natural resources. Cryptocurrency is difficult with something to compare, this is a new and independent area.
In General, does it matter what geometric figure is called? The important thing is that bitcoin is increasingly becoming the currency of trust. The important thing is that bitcoin has valuable properties, which are not Fiat money. This is a limited issue, with all the consequences, and decentralization. As well as a number of less significant properties. Well, in the end, bitcoin is something related with freedom and democracy, something that many people want to have, but not fully have.
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