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Originally Posted by The_Jackal21
Cmon brother, I gave Amazon as an example, are fiat currencies a ponzi? The Forex markets?
No. A ponzi/pyramid market is something that:
- Produces little of external economic worth relative to its valuation (some ponzis are based on real businesses)
- That most people buy into with the promises of getting rich (promises given to them by the current holders)
- That has no fundamental valuation and appreciates only by later speculation money paying off the earlier speculation money.
Fiat promises no return and doesn't rely on the greater fool theory for appreciation (in fact, it can't appreciate because it's stable store of value).
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I get mad because what you write isn't true, apologies if I come of like a roided monkey!
Most of what I write is true. My hitrate on truth and correct analysis is way higher than that of the bitcoin bulls. Why don't you get mad at them? Because they go along with the delusion that your girlfriend is hot.
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But lets have a serious and real discussion, I want to get to the bottom of this.
You call bitcoin a ponzi, so at what point do you concede? You must have something in your mind a number, time, adoption, something, when do you change your mind and say bitcoin is not a ponzi?
My contention is that bitcoin is an illegal/fringe economy base of value (far below the current market cap) with a big speculation frenzy on top. That it's not viable for a mainstream currency and will never be one, hence the ponzi which is >90% of its value is doomed to collapse.
If it gains mainstream usage, if I see normal people using it to buy normal things in more than an ultra rare/fringe manner, it's no longer a ponzi.
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Sure we can assign a number to bits blah blah, the truth is still that it costs, time, energy, computing power, human work, computer work, and some other stuff to create bitcoin, all that costs $$$, so in essence it's not really a random number.
It cost a lot of money to run a billion dollar
Chinese ant farm erection pills ponzi as well. I'm sure Madoff had sizeable costs as well. Not ponzi because costs? The cost of running these ponzis is the "real" value?