Comp Sci prof who doesn't think much of crypto

[oraclewizard77]

Every one seems to be arguing about the guys credentials.

Nobody is refruting the claim that bitcoin is a get rich ponzi scheme.

1) It is not a Ponzi scheme. Period.

"A Ponzi scheme is an investment fraud that pays existing investors with funds collected from new investors. Ponzi schemes are named after Charles Ponzi. In the 1920s, Ponzi promised investors a 50% return within a few months for what he claimed was an investment in international mail coupons."

2) The market price determines the value of Bitcoin and ETH which is controled by the demand of buyers or the fear of sellers.

3) There is no reason that we could not see the price go back up to previous highs in a year from now even if it were to fall another 50% from now. As long as you don't trade on margin, you should be able to handle the wild swings. The point of being an "Elite Trader" is to have an edge that allows you to trade profitably.

 

[R1234]

Every one seems to be arguing about the guys credentials.

Nobody is refruting the claim that bitcoin is a get rich ponzi scheme.

maybe the crypto is garbage and maybe it won't exist in 20 years but between now and that time, it seems to be a great trading/gambling instrument (momentum and volatility that few other assets can match). Trading long and short with BITO/BITI.

 

[deaddog]

1) It is not a Ponzi scheme. Period.

"A Ponzi scheme is an investment fraud that pays existing investors with funds collected from new investors. Ponzi schemes are named after Charles Ponzi. In the 1920s, Ponzi promised investors a 50% return within a few months for what he claimed was an investment in international mail coupons."

So if you are an existing investor how do you get your money out? You have to find someone who is willing to put money in? PONZI!!!

 

[oraclewizard77]

So if you are an existing investor how do you get your money out? You have to find someone who is willing to put money in? PONZI!!!

No, the way it works is you buy Bitcoins on an exchange and transfer the funds to a wallet like Trust wallet on your smart phone.

A Ponzi scheme is when someone you barely know asks you for money which you give them and they use some of that money to pay out previous investors till the scheme falls apart.

 

[Frederick Foresight]

Yeah, and I don't think much of comp-sci professors. The best programmers I've known, going back to the 80s, didn't go to (or didn't finish) college. The academics are classic examples of "if you can't do, teach" and are largely theorists who don't understand most new tech except how to talk about it in vague terms.

Except that he's not the one talking about it in vague terms. YOU are.

 

[Millionaire]

A Ponzi scheme is when someone you barely know asks you for money

Bitcoin fits that description, no one knows who that Shitoshi guy even is.

 

[Frederick Foresight]

No, the way it works is you buy Bitcoins on an exchange and transfer the funds to a wallet like Trust wallet on your smart phone.

A Ponzi scheme is when someone you barely know asks you for money which you give them and they use some of that money to pay out previous investors till the scheme falls apart.

Some people who "invested" with Madoff knew him very well. It was still a Ponzi scheme. He pretended to create value while living very well at the expense of his investors, whom he paid off, as you noted, with subsequent money coming in. But he didn't create any value even in the trading sense because he was essentially stealing from Peter (the new investor) to pay Paul (the earlier investor).

A Ponzi scheme is crooked because value is assigned to essentially nothing out of thin air. Much like crypto mining. Much like cryptocurrencies altogether. Cryptos are at the very least Ponzi-adjacent.

 

[oraclewizard77]

Bitcoin fits that description, no one knows who that Shitoshi guy even is.

I am glad most of you think that, it means time for me to buy more Bitcoin.

 

[deaddog]

No, the way it works is you buy Bitcoins on an exchange and transfer the funds to a wallet like Trust wallet on your smart phone.

A Ponzi scheme is when someone you barely know asks you for money which you give them and they use some of that money to pay out previous investors till the scheme falls apart.

What and just leave it in your wallet until you die? To get your money out you need new money to come in

 

[oraclewizard77]

What and just leave it in your wallet until you die? To get your money out you need new money to come in

No you can then transfer it back to an exchange, and then sell it at market price. Once its sold you transfer the money from the exchange into your bank account.

The main reason not to leave the coins in an exchange till you sell them is if the exchange goes bankrupt, they can lock up your funds.

However, if the exchanges are more regulated in a year from now, it may be safe to leave the coins there just like you can leave stocks say in Etrade since your account is insured.