The bitcoin pyramid scheme How is that working out, where are the Lambos?

Hugo Drax

Diamond Member
Nov 20, 2011
5,646
18
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#1
Looks like Pyramid is collapsing and all the whales cashing out as quick as they can. I would not be surprised when bitcoin finally reaches zero and all the dust settles that the whole scheme was some elaborate ponzi concocted by a few Russians and europeans.

So anyone here cashing out before the music stops?
 

whm1974

Diamond Member
Jul 24, 2016
7,472
494
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#2
Looks like Pyramid is collapsing and all the whales cashing out as quick as they can. I would not be surprised when bitcoin finally reaches zero and all the dust settles that the whole scheme was some elaborate ponzi concocted by a few Russians and europeans.

So anyone here cashing out before the music stops?
Personally I think that Cryptocurrency is about the stupidest Pozi Scheme a person can fall for. It does nothing remotely useful at all. I really hope that governments around the World put a brake on it before this consumes most of the World's power.
 
Aug 25, 2001
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#3
It does nothing remotely useful at all.
It lets you transfer "value", securely, pseudo-anonymously, WITHOUT requiring "banks". Some people find that capability useful. Not everyone is a pump-n-dump CC speculator.
 

whm1974

Diamond Member
Jul 24, 2016
7,472
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#4
It lets you transfer "value", securely, pseudo-anonymously, WITHOUT requiring "banks". Some people find that capability useful. Not everyone is a pump-n-dump CC speculator.
Many areas in the World are having brownouts and power outrages due to coin mining.
 

Ventanni

Golden Member
Jul 25, 2011
1,419
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#5
I got invited to some Bitcoin mining investment group. During the presentation, the guy (who kinda dressed like a bum) kept talking about how the current economic system was impending collapse, that Bitcoin's value was rising steadily, and sooner or later it was going to take over. He then made mention about how the system worked, about how you buy into the system and buy your equipment that mines and makes you Bitcoin (which you earn money from), but if you recruit others you get a small percentage. Once he stated that some of its members were making $60,000 per month, I was like, sunnuvab*tch, the pyramid schemers got into Bitcoin and turned it into a pyramid scheme.
 
Apr 27, 2000
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#6
Seems like Bitcoin tracks the stock market downward but not upward right now.

All crypto is tanking, and it'll probably continue for awhile before someone manipulates the market back upwards.
 
Feb 14, 2002
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#7
I'm sure there are couple Mark Cuban.
 
Oct 9, 2002
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#8
Personally I think that Cryptocurrency is about the stupidest Pozi Scheme a person can fall for. It does nothing remotely useful at all. I really hope that governments around the World put a brake on it before this consumes most of the World's power.
I've never purchased, generated, or used any kind of cryptocurrency because I'm still trying to wrap my head around it. Still, I can't help but smirk and laugh to myself when I hear criticisms of cryptocurrency that also apply to the traditional currency we all use.
 

repoman0

Platinum Member
Jun 17, 2010
2,512
137
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#9
I've never purchased, generated, or used any kind of cryptocurrency because I'm still trying to wrap my head around it. Still, I can't help but smirk and laugh to myself when I hear criticisms of cryptocurrency that also apply to the traditional currency we all use.
Traditional currency does nothing useful? OK
 

Skel

Diamond Member
Apr 11, 2001
5,794
87
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#11
If bitcoin collapses what will crooked TV politicians and business men use to demand payments?
 
Oct 9, 1999
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#14
I've never purchased, generated, or used any kind of cryptocurrency because I'm still trying to wrap my head around it. Still, I can't help but smirk and laugh to myself when I hear criticisms of cryptocurrency that also apply to the traditional currency we all use.
Yeah its truly amazing how some people cant see this.
 

repoman0

Platinum Member
Jun 17, 2010
2,512
137
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#15
What does it do that cryptocurrency does not? Think carefully.
It doesn't wildly fluctuate in value and isn't deflationary, for one (thread is about bitcoin). It's backed by the US government so is as stable as the country, which is about the best you can do.

Obviously a government could circulate a version of a cryptocurrency that allows new tokens to be created on demand (inflationary) and it would be fully capable of doing anything a traditional currency can do. Since that's not the case, it's garbage.

You can get paid in non-government backed CrypT0k3ns if you want but I'll stick with USD.
 

whm1974

Diamond Member
Jul 24, 2016
7,472
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#16
There is also the fact that I can take US Currency to just about anywhere in the World and be able to buy goods and services with it.
 
Oct 9, 2002
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#17
It doesn't wildly fluctuate in value and isn't deflationary, for one (thread is about bitcoin). It's backed by the US government so is as stable as the country, which is about the best you can do.

Obviously a government could circulate a version of a cryptocurrency that allows new tokens to be created on demand (inflationary) and it would be fully capable of doing anything a traditional currency can do. Since that's not the case, it's garbage.

You can get paid in non-government backed CrypT0k3ns if you want but I'll stick with USD.
"It's backed by the [whatever government]" actually means it's manipulated by [whatever government]. Yay!

Anyway, I wouldn't expect something relatively new like this to be stable yet.

Traditional currencies can destabilize pretty quickly too -- on the whims of government officials.
 

repoman0

Platinum Member
Jun 17, 2010
2,512
137
136
#18
"It's backed by the [whatever government]" actually means it's manipulated by [whatever government]. Yay!
So what? Ability to manipulate monetary policy can save an economy. Yay indeed! Thanks US government and federal reserve for printing money in 2008/2009 and bringing rates to 0, could have been a whole lot worse without that ability.

Traditional currencies can destabilize pretty quickly too -- on the whims of government officials.
And despite the current idiot admin's best efforts, USD is still as stable as it was in 2015.
 
Apr 8, 2002
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#19
I got invited to some Bitcoin mining investment group. During the presentation, the guy (who kinda dressed like a bum) kept talking about how the current economic system was impending collapse, that Bitcoin's value was rising steadily, and sooner or later it was going to take over. He then made mention about how the system worked, about how you buy into the system and buy your equipment that mines and makes you Bitcoin (which you earn money from), but if you recruit others you get a small percentage. Once he stated that some of its members were making $60,000 per month, I was like, sunnuvab*tch, the pyramid schemers got into Bitcoin and turned it into a pyramid scheme.
I believe they are now called Multi Level Marketers! :D
 
Apr 8, 2002
40,983
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#20
Yeah. It's just a matter of adoption. It performs the same function (a means of exchange)
Except it sees massive inflation and deflation. Which makes it useless as a currency. Why buy a TV today when you can buy 4 tomorrow? So far it has served as a speculative investment. And I dont see that changing much in the future.
 

Hugo Drax

Diamond Member
Nov 20, 2011
5,646
18
91
#21
It lets you transfer "value", securely, pseudo-anonymously, WITHOUT requiring "banks". Some people find that capability useful. Not everyone is a pump-n-dump CC speculator.
But how does that work. I sell you a car for bitcoin, i
Yeah. It's just a matter of adoption. It performs the same function (a means of exchange)
How would you feel If I bought a house in 2017 for 200k usd. I hand you 10 bitcoin and today you decide to house hunt but just discovered your bitcoin is worth only 33k. That would mean bitcoin is about as good as Venezuelan currency against the USD. The price swings makes it useless as a means of exchange.

I would rather buy gold and use that as a medium of exchange. At least I get to hold some pretty gold coins vs vapor.
 

Hugo Drax

Diamond Member
Nov 20, 2011
5,646
18
91
#22
"It's backed by the [whatever government]" actually means it's manipulated by [whatever government]. Yay!

Anyway, I wouldn't expect something relatively new like this to be stable yet.

Traditional currencies can destabilize pretty quickly too -- on the whims of government officials.
Lolol you mean bitcoin is not manipulated? So how did it run up to 20k and down to 3.3k? You dont see the dollar do that. Hey if you want an alternate store of value to hedge against currency risk go buy good old gold. Been tested for millenia and you get to hold it.

Remember anyone can create a new coin, bitcon is just one of many coins. Bitcoin is based on nothing.

Now if someone creates a cryptocurrency and its backed by an audited gold store in a insured vault and its backed by a legitimate entity then I can see that cryptocurrency working. But bitcoin is based on nothing, zero. Its worse than fiat because there are no regulations or entity to back it and provide an orderly market etc..
 

whm1974

Diamond Member
Jul 24, 2016
7,472
494
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#23
But how does that work. I sell you a car for bitcoin, i


How would you feel If I bought a house in 2017 for 200k usd. I hand you 10 bitcoin and today you decide to house hunt but just discovered your bitcoin is worth only 33k. That would mean bitcoin is about as good as Venezuelan currency against the USD. The price swings makes it useless as a means of exchange.

I would rather buy gold and use that as a medium of exchange. At least I get to hold some pretty gold coins vs vapor.
Ha Ha I caught the Gold Bug back in the early 2000's, but couldn't afford gold coins so I brought silver rounds instead. Did you know that buying Gold with a CC isn't allowed by the Feds.

Did made about 50% profit when I sold them back in summer 2007.
 
Oct 9, 2002
26,645
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#24
But how does that work. I sell you a car for bitcoin, i


How would you feel If I bought a house in 2017 for 200k usd. I hand you 10 bitcoin and today you decide to house hunt but just discovered your bitcoin is worth only 33k. That would mean bitcoin is about as good as Venezuelan currency against the USD. The price swings makes it useless as a means of exchange.

I would rather buy gold and use that as a medium of exchange. At least I get to hold some pretty gold coins vs vapor.
Silly to put a lot of money into crypto until it has had enough time to stabilize. (Decades?)

Using it for exchange doesn't mean your money has to stay in crypto form.
 
Oct 9, 2002
26,645
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#25
Lolol you mean bitcoin is not manipulated? So how did it run up to 20k and down to 3.3k? You dont see the dollar do that. Hey if you want an alternate store of value to hedge against currency risk go buy good old gold. Been tested for millenia and you get to hold it.
"Volatility" and "manipulation" are different things. I would expect something this new to be volatile until the market figures out how to value it.

Remember anyone can create a new coin, bitcon is just one of many coins. Bitcoin is based on nothing.
This, right here, is exactly what I was talking about. The US dollar and all the currencies based on the US dollar are based on ...

...

...

...

nothing.


Now if someone creates a cryptocurrency and its backed by an audited gold store in a insured vault and its backed by a legitimate entity then I can see that cryptocurrency working. But bitcoin is based on nothing, zero. Its worse than fiat because there are no regulations or entity to back it and provide an orderly market etc..
US dollar is based on nothing. It only has value because we believe it does.
 
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