posted on Nov, 8 2013 @ 10:58 PM
reply to post by superman2012
Not a ponzi scheme or any other pyramid scam, but it can be a scheme and a scam
The problem starts with the concept of crypto-currency (safety and value) then it goes into the anonymous creator of the protocol and bitcoin (there
are good reasons to remain anonymous but one of the most pressing must be liability, imagine if it was created by a master crook that knows the
specific weaknesses of the system, granted many people have examined it but the chance is still present).
The concept of the structure and in it the part that seems like a pyramid scam are the miners and the market around it, miners were the pioneers (and
supposedly where the inventor could have re-cupped the money for his creation, if monetary oriented), imagine the first diggers of gold the first
tones would have had only the value regarding what one could do with the metal I doubt that anyone would have made much effort to mine the initial
samples of the metal but as soon as it become popular an industry around it was created (from land rights, to mining equipment, to prostitutes
every one wanted to get a bit of the profit, not specifically the yellow metal) this is the situation bitcoin is at now...
The cost of digging is increasing (as it was designed to be) so the support markets around it are becoming smaller and increasingly more specialized,
there are even corporations formed to dig them up, in a while we could even see nationalizations
. The digger digger business is now extremely
professional and resource intensive it is no longer for the common Joe (but like a ponzi scheme those first in had the chance to make real profit),
but the crypto-currency is not only defined by the first miners there are real benefits if it works as advertised (and people continue to support it),
in fact it is best than the fiat money in use today that can be devalued (quantitative easing) and generally managed by central banks for selfish
competitive reasons and market control.
But the fact remains if we can't even trust our government to back the fiat currency what trust can we place on the crypto-currency that no one
central point has responsibility over and can work to avoid a drastic collapse in value. Like we see governments doing in the real world with the fiat
today. Even if the planning is all f'up, and is resumed to "kick that crysis away from us", we still have running water, now imagine a crash on
bitcoin where only the larger players invested in it can hope to make corrective moves (at a large risk, those are the same players that benefit from
the large fluctuations and I doubt that many are bitcoin miners)...