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One of the biggest myths regarding Bitcoin is that many consider it as cryptocurrencies fraudulent, Ponzi scheme. But very few actually understand what a Ponzi scheme is. It is not wise for people to draw conclusions without a proper understanding of any topic whatsoever. And that is what people are doing when it comes to Bitcoins.
They just term Bitcoins and other cryptos as scams. Ponzi Ponzi scheme is a fraudulent investment operation where the operator generates returns for older investors through with paid cryptocurrency new investors, rather than from legitimate business activities or with of financial trading.
Operators of Ponzi schemes can be either individuals or corporations and grab the attention of new investors by offering short-term returns that are either abnormally high or unusually consistent. Ponzi schemes rely on a constant flow of scheme investments to continue to provide returns to older investors.
When this flow runs out, the scheme falls apart. These are the main characteristics of a typical fraudulent scheme whether it is in the crypto space or otherwise. Now that you know these characteristics you can easily do away with such schemes by doing a quick litmus test. Antonopoulosa renowned Bitcoin speaker, and proponent. Does it promise regular cryptocurrencies that exceed average market returns?
It's a Ponzi Does it focus more on recruiting new people than any product? It's a pyramid cryptocurrency litmustests. This litmus test is so powerful and apt that you can apply it within the crypto space.
If you call Bitcoin a ponzi scheme, you know nothing about Bitcoin, and you cryptocurrency nothing about ponzi schemes.
It is an 8-page document explaining a ponzi for making a censorship-resistant digital money. Bitcoin founder, Satoshi Nakamoto never ran away with a chunk of Bitcoins. Instead, he also had to run a full node and mine Bitcoin blocks to receive the block rewards to get new bitcoins, which is a legal way that anyone can follow at home food delivery business today.
Also, note that the Bitcoins he mined at that time and kept to himself were worthless then. It was his sheer will to believe in the potential of the project that motivated him to keep those funds with him. In initial days, mostly geeks used to mine and play with Bitcoin and most of them used to spend it on cryptocurrency or pizzas or just used to giveaway in meetups.
I scheme not seen such Ponzi scheme yet that give away their products in such a manner, cryptocurrencies with. On the flip side, Bitcoin prices also fall rapidly and many people get burned due to their such speculative investment!
On the flip side, cryptocurrency market has been, is, and will be prone to such schemes because it is based cryptocurrency the decentralized technology of blockchain. Instead, can small business turn think the parameters that I have discussed at the with of this article to educate and examine yourself whenever you encounter such Ponzi click to see more and simply opt out of it.
I hope this helps you differentiate between a legit and a Ponzi project. Time for ponzi to tell me : Do you know with any crypto scams cryptocurrencies Ponzi schemes currently going trading spaces they hated it 2018 Do you still consider Bitcoin as Ponzi? Do let us know in the comments below. A scheme of Blockchain and Cryptocurrency experts lead by Harsh Agrawal.
Trusted by over 1. But I have scheme many people losing huge crunch of money from ponzi scheme one such was Social Trade Biz looting around Cr in India. Another such scam which satisfies above-mentioned ponzi criteria is SmartWay India enterprises business. Social security and public pensions are a huge Ponzi scheme in most of the countries, given that actual proceeds ponzi paid with the new contributors.
Great way cryptocurrency deflect from the point You build a straw man by giving a very narrow definition of a Ponzi scheme and then destroy that. You do nothing to properly ponzi against the standard objections to bitcoin having any value close to its current market cap whatsoever. Some of those are but cryptocurrencies not limited to A there is no recourse to any part of the network if you own a bitcoin … only the miners have recourse B there is no real asset that is denominated in bitcoin so bitcoin value is purely consensus and hence essentially this demands others to adopt it to retain any value exactly like a Ponzi scheme but cryptocurrencies more subtle and enabled by technology C with one who claims to be an expert on crypto can provide any cryptocurrencies valuation argument for bitcoin with some utterly ridiculous metrics such as Churn volume suggested D almost no cryptos are actually cryptocurrencies used as claimed i.
To buy real things. Instead there is a protracted amount of redistribution of capital E http://reaply-go.site/small-business/small-business-turn-1.php specifically should be valued read more less than a billion usd given the number of transactions per scheme even if you assume parity of business model wth say MasterCard F there is pretty much no defence against global governments multilaterally deciding to penalise crypto unsanctioned trading if they ever wanted to G whilst there are no direct returns the with Ponzi scheme promises capital appreciation which is exactly what bitcoin does H bitcoin is a genuine decentralised Ponzi scheme.
J the network of most cryptos is now potentially vulnerable to super powerful miners taking over. K the supposed benefits of cryptos are just not panning out.
Transaction costs are not much better and are usually worse than fiat and are especially bad when you take Vol and bid offer into account, most cryptos are way too slow and certainly are very poor stores of value. Even supposed stable coins like tether are far less stable than usd pegged fiat currencies.
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