So your argument is: It is OK bitcoin being a Ponzi, because there are other overvalued assets out there.
Splendid!!!
Hey, at least you aren't debating the obvious...
Rickards: ‘Bitcoin is a Ponzi Scheme’
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So your argument is: It is OK bitcoin being a Ponzi, because there are other overvalued assets out there.
Splendid!!!
Hey, at least you aren't debating the obvious...
My Argument is, I do not understand the need to either own bitcoin or hate it. I just don't get the angry animosity. I don't see people going crazy about the $100M paintings. High end wine is another asset that has been going up in price, but I do not see people mortgaging their houses to invest into wine or scream about crazy people paying 10K per bottle, somehow everybody is OK with it. I argue that the idea behind bitcoin is remarkable and is worth understanding if nothing else.
Another point is this. Whatever you want to call the bitcoin an overvalued asset or if you think it should not be worth anything in USD it might be a very valid point and I won't argue against it. But do not call it a ponzi scheme. You can't call everything you do not like, or do not understand or you think is overvalued a ponzi scheme. No one is suggesting there is any kind of return on your investment, you are not investing into a fund or a business.
You think its overvalued, sure you make a good point. You think its worth 0, very well possible. But it is not a ponzi scheme. If you do not want to buy it you do not have to, just like $100M painting or $10K bottle of wine.
Another point is this. Whatever you want to call the bitcoin an overvalued asset or if you think it should not be worth anything in USD it might be a very valid point and I won't argue against it. But do not call it a ponzi scheme. You can't call everything you do not like, or do not understand or you think is overvalued a ponzi scheme. No one is suggesting there is any kind of return on your investment, you are not investing into a fund or a business.
You think its overvalued, sure you make a good point. You think its worth 0, very well possible. But it is not a ponzi scheme. If you do not want to buy it you do not have to, just like $100M painting or $10K bottle of wine.
Brilliant. Never thought of that.
How many btc do you own and at what price?
I don't own much. I trade them on a regular basis like how I trade the stocks and futures. So, I don't really care if it is appreciating or depreciating in value, I will just go long or short.
Except when the discussed thing has very ponzi-esque features:
1. It needs a constant inflow of new capital to keep the price growing.
2. Old timers are paid with the new comers' money.
3. Holders have an us vs. them cult attitude.
4. It might not have any other kind of value or usage. (this is mostly for alt-coins)
5. High returns promised (with little risk).
6. Exponential growth is needed for the promised returns.
etc.etc.
Now you might say, hey, that isn't much different from certain stocks, and you would be right! The stock of an unprofitable company based on a faulty business model is nothing but a ponzi, see pets.com, webvan, etc. We can throw in Twitter and Snapchat too from current stocks.
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Everything is about sentiment/perception.
If a company is going bankrupt but the market has a good sentiment about it, the price will still appreciate as people keep buying it.
Same goes to BTC, even if there's no value in it but the people perceive it to be as valuable as gold, then the price will appreciate as people will bid higher.
It boils down to the sentiment of the herd/traders, and not the actually value that is/could be calculated.
If a company is going bankrupt but the market has a good sentiment about it, the price will still appreciate as people keep buying it.
Same goes to BTC, even if there's no value in it but the people perceive it to be as valuable as gold, then the price will appreciate as people will bid higher.
It boils down to the sentiment of the herd/traders, and not the actually value that is/could be calculated.
5. High returns promised (with little risk).
6. Exponential growth is needed for the promised returns.
etc.etc.
Lets clarify something, who is promising you anything and with little risk lol ? The only promise you get is that this thing can go to 0 or 10K right now. Complete gamble, no one has a clue where it will go. There are no promises, there are no returns. You are buying something, its not a business, there are no ways it can generate profit.
6. Exponential growth is needed for the promised returns.
etc.etc.
Lets clarify something, who is promising you anything and with little risk lol ? The only promise you get is that this thing can go to 0 or 10K right now. Complete gamble, no one has a clue where it will go. There are no promises, there are no returns. You are buying something, its not a business, there are no ways it can generate profit.
Sure. Hodlers are holding it because they believe in its usability.
Just ask any bitcoin fan they promise you 10K as a minimum. Why, do you think they would hold it if they thought it goes to 1K???
Holder can believe anything they want. No one is promising anything to them.
That's BS. I do not get paid anything if you buy 1 Bitcoin. Just the same as I do not get paid by you if you buy an IBM share.
By the way: the IMF has research that fraudulent-Ponzi idea already, and concluded that Bitcoin doesn't fall in that category (otherwise it would have been brought to Justice already, like the Onecoin case):
https://www.coindesk.com/world-bank-report-bitcoin-naturally-occurring-ponzi/
