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[–] edgelord 1 points 41 points (+42|-1) ago 

Bitcoin a pyramid scheme? I don't see this as being plausible in the slightest.

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[–] LOOK_AT_MY_POT 0 points 11 points (+11|-0) ago  (edited ago)

The people calling bitcoin (BTC) a "pyramid scheme" don't really understand the words "pyramid scheme" or "bitcoin".

"Pump and dump" would be a much more accurate term.

Early adopters bought BTC cheap ($0.13 in my case) and then hyped the fuck out of BTC.

More people started buying BTC due to the hype (this is the "pump").

The price skyrocketed.

Then they (we) sold those BTC for >$1000 each (this is the "dump").

I made 769230.7% profit off each BTC.

Now BTC is stable, and can be used as currency, and I made (literally) a metric ton of money.

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[–] j_ 0 points 5 points (+5|-0) ago 

Yep, and that said, any "scheme" was carried out using Bitcoin, but isn't a flaw or attribute of Bitcoin itself.

It's like saying money is a pyramid scheme or a pump-and-dump scheme.

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[–] edgelord 0 points 2 points (+2|-0) ago 

I don't even use bitcoin and I know that these accusations are ridiculous. You explained it quite well.

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[–] Rummel 0 points 1 points (+1|-0) ago 

The Litecoin gravy boat pump is coming right? guys?

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[–] umilmi81 0 points 2 points (+2|-0) ago 

Pyramid scheme isn't really the right word for it, but bitcoin has the same problem as physical gold. The gold is more valuable as an investment than it is as a currency. When the value of a gold coin is going to be higher next year than it is this year there is incentive to hang on to it and not spend it.

As more people hold on to their gold coins instead of spending them the value of gold coins continues to rise creating a bubble.

Decoupling the US dollar from gold meant we could have inflation. Despite what you will hear from the Gold Bugs, inflation is good as long as the reason for the inflation is private borrowing rather than government borrowing.

When a private entity borrows money that money is "created out of thin air". Well in order to pay back that money created out of thin air the private entity needs to create goods and services "out of thin air". This means more goods and services for the world to consume.

Governments, on the other hand, don't create goods and services. Governments govern. Government is an overhead cost. When the government borrows money they can't pay it back. The only way to pay it back is to take it from someone else who can create goods and services.

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[–] snex 0 points 2 points (+2|-0) ago  (edited ago)

When the value of a gold coin is going to be higher next year than it is this year there is incentive to hang on to it and not spend it.

There is simply no evidence that this is the case. Consumer electronics fall in price every single year, predictably, and yet people constantly buy them and these firms are among the most profitable in the world. And nobody is going to simply starve to death waiting for their gold to appreciate in value so much that they can buy more food down the road. When America was on a gold standard, our economic growth was higher than it was any time after that, bar none.

The idea that inflation is good for you is a lie perpetuated by the people who actually benefit from inflation - the government and Wall Street firms who get to spend the new money before prices in the economy go up.

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[–] wait 0 points 0 points (+0|-0) ago 

It's extremely deflationary, because production continually slows down. This greatly benefits early adopters. They become more and more rare over time, so they gain value over time.

Never trust anyone that says "hur dur hur."

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[–] edgelord 0 points 1 points (+1|-0) ago 

That's how every resource works.

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[–] Voat_Poaster 0 points 0 points (+0|-0) ago 

More like BUTTcoin! Ha ha! my wrangler wipes the drool from my lips