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RE: Bitcoin is not Cryptocurrency

in #blog7 years ago

Great post! Just to clarify, though, a Ponzi scheme is something quite specific, and Bitcoin ain't one, period.

According to Wikipedia, a Ponzi scheme is a fraudulent investment operation where the operator generates returns for older investors through revenue paid by new investors, rather than from legitimate business activities or profit of financial trading. Think Bernie Madoff.

With Bitcoin, there is no 'operator'. Cheers!

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With Bitcoin, there is no 'operator'.

Good point on this.

rather than from legitimate business activities or profit of financial trading.

I think the financial analyst/Buffer considered this part though. I suppose it's a Ponzi scheme with no operator? At any rate, I don't believe it's a Ponzi scheme, as I say in the footnote, I'm well aware that with BTC you're getting access to a global immutable ledger, however I'm not convinced access to a global immutable ledger should cost what it currently does.