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Comment: Bitcoin Pyramid scheme

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Bitcoin Pyramid scheme

I've always seen bitcoin as a bit of a Pyramid scheme, if you got it early on, you made huge profits if you entered the game late you gain next to nothing, especially since the rate which bitcoins are generated is diminishing.

Now if you own a lot of bitcoin the logical thing would be to hype it, I'm not saying it doesn't have a lot of good qualities, what I am saying is that the first ones investing in it got a huge amount of money out of it, almost like counterfeiting.

Secondly I see a big vulnerability to it due to the amount of spyware going around. If it would have been linked to a finite resource like gold or oil and invested some of the money earned from it to increase transaction security via a security token like internet banks use, then I'd be all over it.

It has to be linked to a real resource else it only gain value due to speculations of future value. One solution could be to make the bitcoins represent a share of a company, ideally like paypal, that takes a small transaction fee say 0,5%. Earnings the company then makes (by its transactions) go into adding value to the company by buying resources that hold real world actual value, the creation of the new coins or shares could be similar to the model bitcoin uses except that rate of creating new coins is based on the company current value.