3 votes

Bitcoin - A Ponzi Scheme Which Is Actually Worth The Money.

I need to come clean.

I've been a bit negative on Bitcoin due to selling a large portion of them at $13 thinking it was going to stay in some sort of sane range.

The fundamentals of Bitcoin are quite sound. The acceptance is growing. The "agreement" between buyer and seller is actually able to be done between buyer and seller and (granted some 15 year old doesn't find a 'smoking gun' in the code) without any middleman.

Just on a supply chain basis alone: Obviously prosperity is highest when buyers and sellers are dealing directly with each other. The danger in the SHORT TERM with Bitcoin is the following:

From what I'm witnessing trade wise (many $500,000+ trades creating large swings and lots of minor trades) banksters are heavily in on Bitcoin attempting to corner the market. They can make it go on some real wild swings if they want with very little effort. If you're in and you don't have your seatbelt on... you're going to get yourself hurt. I believe the banksters are currently using their Bitcoin horde to get people out of physical silver and gold... which will drive the price down of those metals.

If you're going to get into Bitcoin I highly suggest you do it one of two ways:

1) Grab Bitcoins as you need them to carry out your PRIVATE business online. These are short-term Bitcoins. Do not hold them for longer than a few minutes.

2) Buy for the ride. Put your cash in and do not touch it for 5 years... or obviously if Bitcoin is going crazy later on you can sell off a bit here and there to finance all pursuits of happiness in life :)

If you appreciated this advise and somewhere down the line feel the urge to thank me you can do so by donating to the americanherofund Bitcoin address:

DO NOT DO THIS: Put your last few hundred in rent down because you need food and you think in two weeks you might be able to double your money. You might be out on your arse and starving for your blind gamble.

As far as the title goes my point is the Banksters are attempting to operate Bitcoin like a ponzi scheme and leave you holding the bag by making the herd of less educated investors run you over. The reality is that 21 million divided by 7 billion works out to around .003 Bitcoin per man, woman and child on the planet.

.003 Bitcoin would theoretically cover your entire net worth, for example if everyone had an equal share. The upside to Bitcoin is truly mind-blowing and down-right astronomical when one starts running these numbers in their heads. We're talking about 1 Bitcoin theoretically being worth more than a few of the alleged Fort-Knox gold bars.

Yes there are the obvious issues with a finite currency being able to be horded however the Bitcoin model could be repeated over and over, infinitely so as well as being divided to 10 decimals if need be.

The banksters right now have quite a bit but they've only been able to maintain their lead down through history by having the game COMPLETELY RIGGED IN THEIR FAVOR! The main thing is we're all on the SAME LEVEL PLAYING FIELD regardless of how much Bitcoin we have to start with.

IMO Buy Silver. Buy Gold. Buy Bitcoin and hold for the long run if you can afford it. Don't be afraid to support other virtual currencies as well. One thing I do realize now as I consider the derivatives and hypothecation that is possible with the CURRENT total fiat system:

Bitcoin hurts banksters in the not to long run and it's a good way to say no to mass bankster financial genocide. So I give Bitcoin the green light, as long as you're into mass chaos and don't mind a bit of a financial roller coaster ride :)

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Bitcoin may be in a

Bitcoin may be in a speculative bubble, but it is not a Ponzi scheme. Nowadays people tend to use the phrase "Ponzi scheme" to mean any sort of financial chicanery. But a Ponzi scheme is a specific type of financial fraud. The fraudster accepts deposits promising a high rate of return. He pays the initial investors by taking deposits from a second round of investors. He pays the second round of investors by taking deposits from a third round of investors. For this to continue indefinitely there must be an exponentially growing pool of investors. Of course this is not possible, so eventually the last round of investors gets no money back, as the fraudster vanishes to some other country with their money. Bitcoin is more like the tech stocks during the Nasdaq boom. People see something going up and up, so they buy expecting it to go up more. This buying pressure does indeed send the price up. But eventually you get to the last speculator and the price comes crashing down. Bitcoin was designed so that the number of new coins is strictly limited. This sets up an artificial scarcity that causes bubbles like the one we've seen. No normal currency would go up by a factor of 20 in a few months. Bitcoin simply has too small a float to serve as a successful alternative currency. Of course this is the opposite of standard fiat currencies, where the problem is that there is no limit at all on the amount of currency produced. Remember that a currency is supposed to be a store of wealth and a medium of exchange, not a route to fast, unearned riches.

As I understand it, bitcoin

As I understand it, bitcoin is a fiat currency. The Lord declaring the worth of this currency is the horde. Bitcoin is worth whatever people -- the horde -- decides at any one point.

As I understand it bitcoin is not removing the fiat part of our current currency; only that the Lords declaring the fiat worth of a bitcoin are the mass of people participating. As I understand it, a bitcoin is more comparable to a stock, which is so often traded, not by the company's worth and prospects, but by the anticipation of folks who buy stocks.

In other words, a bitcoin is valued according to how the mass of people participating value a bitcoin's ability to procure goods tomorrow or the next day. It's value beyond the dollar or any other fiat currency is that the mass of participating people, rather than a government entity, decide it's worth.

My question: what happens when the mass of participating people are largely bought out by the power-play people? Isn't that what happened with the Dollar? How does bitcoin protect itself from the same forces that brought the Dollar under subjugation?

If the horde determined the value it would rise to infinity.

What ultimately determines the value (price) of a currency is what it can be bought.

If I will sell you and ounce of gold for 16,000 BTC, I make an offer to sell. If you buy at that price there is real exchange value established.

However, past performance can only establish an expected value. If a million people buy gold for 16,000 BTC prices are well established. But tomorrow, who knows.

Maybe I ran out of gold, maybe no one wants anymore gold.

The Market merely tends to find what people see as fair value. It tends to average over the millions of transactions no matter what the currency.

In the end the buyer is sovereign in a free market. The buyer decides to buy or not. In the end the individual chooses what price he or she will pay. The individual is Lord in a free market.

We use money or currencies as a tool to communicate, or haggle for the best deal between the buyer and seller.

Free includes debt-free!

You said the same thing I

You said the same thing I said. The horde is the market; it's, like, all the players in the marketplace. You're not disagreeing with anything but my use of the word "horde" to replace your "people."

Certainly the individual chooses what he/she will buy and is all Lord of his/her own purchases. But the individual doesn't determine the value of a currency -- Bitcoin or any other currency -- a big, fat mass of people do, a horde.

Everything else is the same

Everything else is the same way - that is not what distinguishes a fiat currency.

A guy his sold his Bitcoins at $13

is giving us advice about how to invest in Bitcoin..
and what it's all about....

Think about that one there..

Think about this one...

you're an as*hole. I guess you can't appreciate honesty. I guess you'll just keep voting - and for those who tell you everything you want to hear. What an incredibly ignorant comment.

Learning from someone else's mistakes... yeah what was I thinking.


Honestly to me the bitcoin deal is another attempt by our banker overlords to establish yet another currency based on no real value at all. Why trade the dollar or any other fiat currency for another? Because its status against other currencies makes it a good buy? Please. Wealth and accountability are better off being established and backed against items of real value and application.

Cannabis is a far better currency than the dollar. It is s substance of value everywhere you go in the world. It has intrinsic value applicable to our survival. It can nourish the body. It can nourish the mind. It can make paper and plastic. Does bitcoin offer any of these fine qualities in a currency? I think not. Neither does any other fiat currency. Put that in your pipe and smoke it!

No but using bitcoin can get

No but using bitcoin can get weed (or any other substance) shipped to my front door, using the Silk Road. Try doing that with gold, silver, or weed.

Disclaimer. I do not do drugs, not even caffeine.

That was very practical

I'm starting to get it, ty.

I have no idea what your talking about

And I can't wrap my head around bit coin. It seems like it is not complicated until I start reading about it and the explanations are confusing the heck outta me.

a genius

idea is self evident.
ever get a follow up question to, "that's a salt shaker"?

"The two weakest arguments for any issue on the House floor are moral and constitutional"
Ron Paul

What part confuses you?

What part confuses you?