Crypto. Ponzi Scheme?

LoveTrees

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Can someone explain to me how any cryptocurrency can be given value please? Different companies can produce bitcoins etc and i don't see central regulators counting the bitcoins etc available in the World. To me this is a clear Ponzi Scheme or am I missing something?
 
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Steven Barrett

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There's a 30 page thread below which is a good starting point :)

 

DazedInPontoon

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Different companies can produce bitcoins etc
Companies can't produce bitcoins. bitcoins must be earned through mining or bought. Anyone can create their own alternatvie cryptocurrency if they like, but without a substantial network of users it's of no consequence.
and i don't see central regulators counting the bitcoins etc available in the World.
We don't need regulators to count them because the blockchain that contains the history of all transactions and thus balances of all bitcoin address is public. Right now there is exactly 18,682,542 bitcoin in circulation.
To me this is a clear Ponzi Scheme or am I missing something?
Some cryptocurrencies are scams, but bitcoin isn't. What you're missing is even a basic understanding of how it works.
 

LoveTrees

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Companies can't produce bitcoins. [...] {1}

We don't need regulators to count them [...] {2}

Some cryptocurrencies are scams, but bitcoin isn't. What you're missing is even a basic understanding of how it works. [...] {3}
Point {1}. Yes they can and it costs environmentally. I read an article in an italian newspaper that to produce a bitcoin it takes cpu-power and time

Point {2}. Why? Then let's all produce tulips like in Holland just a few centuries ago and forget about history

Point {3}. Don't offend please. I know you need to protect your investment.

I propose we re-read this thread in 30 years from now to check if it was ironic that the day in which Bernie Madoff died and Coinbase got into the Nasdaq was the same. Thank you.

@Steven Barrett thank you. 30 pages-thread (still being updated at present) to try and answer my same query? I notice many opinions and few certainties then
 
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NotMyRealName

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Coinbase hit the Nasdaq today, Tesla on the S+P 500, ........ we're all in bitcoin now by proxy.
Nothing wrong with a good old-fashioned pyramid scheme (think public sector pensions) as long as they're not short lived. Just ask an Irish bartender in Queens or the Bronx in '87...
The trick is to accept you've made a certain amount of return and then withdraw from the arena. There's no compounding in Pyramid schemes.
 

noproblem

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If you've a few thousand you can afford to lose, then have a punt. A far smarter person that myself told me that Bitcoin's going to €200k. Someone said the Bossman of this Ask About Money website is into it in a big way? :p
 

LoveTrees

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Personally I don't care about crypto as long as it's not another growing Ponzi Scheme like the subprime crisis we all suffered in 2008/9... That's my view and I prefer to stick to Warren Buffett and Charlie Munger instead thank you... I understand we all lost confidence in Banks when subprime went astray but giving too confidence on value creation in the hands of other few people that don't clearly show their cards is so bad... The creator of bitcoin is unnamed not by chance still to my opinion... Again: just my view
 
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DazedInPontoon

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You can wade through about 1000 pages of alt-coin announcements here https://bitcointalk.org/index.php?board=159.0 I presume the vast majority of them are pre-mined trash. It's a fairly simple concept - create a coin, award some to yourself up front, launch it, hype it, dump your bags. Repeat.

There are also bigger scams like Onecoin (https://www.bbc.com/news/technology-50509299) though I doubt that was even a cryptocurrency at all, just a straight up ponzi.

There are so many people who are both looking for the 'next bitcoin' but don't understand enough about it that it's a no brainer for scammers to find targets.
 
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