Is Bitcoin a Pyramid Scheme? - cryptonews.com

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Myths & Facts On Bitcoin

Myths & Facts On Bitcoin
Bitcoin is attracting the attention of an increasing number of both investors and ordinary people. Many years have passed since the birth of the first cryptocurrency but there are still a lot of rumors surrounding it.
by StealthEX
In this article, we will try to dispel the most popular myths about Bitcoin and shed light on reality. So let’s roll!

Everyone can “print” Bitcoins, so they are useless

Nowadays the complexity of Bitcoin mining is too high and moreover it is constantly increasing.
As known, Bitcoins are mined in blocks and the reward for each block is halved after every 210 thousand blocks produced. And if in 2009 the reward for the block was 50 BTC, now it is only 6, 25 BTC, and this reward will continue to decrease.
Due to the innovation in mining equipment, the total network performance has increased many times along with the complexity. At the moment, a standard PC is not able to provide the necessary computing power for mining digital gold. For profitable mining, huge investments required which measured in hundreds of thousands and millions of USD.
The value of Bitcoin is determined not by the fact that it can be minted by everyone, but by whether this currency will be used by people in everyday life.

BTC is used to buy drugs and money laundering

Illegal activities exist much longer than Bitcoin. Yes, it is possible to buy drugs for BTC as it is also possible to do so using the American dollar, Nigerian naira, or Thai baht. Bitcoin is just a means of payment. So blaming the tool for how it is being used is not right.
It is also worth mentioning that in the blockchain each transaction is public, which is not very convenient for illegal activities. It is believed that only 1-5% of all BTC transactions are used for money laundering. Of course, there is no consensus on this issue.

Using Bitcoin is not safe, exchanges are constantly being hacked

Headlines announcing that another major cryptocurrency exchange was hacked could scare away anyone from the crypto industry. However, Bitcoin network has never been hacked.
The technology that was created by Satoshi Nakamoto is safer than any bank in the world. So rogues are unlikely could withdraw coins from hardware wallet even with physical access to it. Bitcoin cannot be falsified: the issue of new coins occurs according to a strictly predefined schedule, which cannot be violated.
But the situation with storing currency on exchanges is a real problem. Unfortunately, hackers remain the key enemy for the crypto community. So please be extremely careful when considering options where to store your savings.

Bitcoin is a pyramid scheme

Bitcoin value has risen 15 times in 2017 so no wonder that many people think that BTC is just another soap-bubble or Ponzi scheme.
But how does Ponzi scheme work? Existing investors profit from new entrants. However, there is no objective increase in the value of investments. In addition, a creator of the pyramid ultimately derives maximum benefit for itself.
All this has nothing to do with Bitcoin technology. Because there is no regulatory center interested in income generation and all the users are equal. And each transaction, each wallet is part of one huge system. The other important Bitcoin difference from the classical pyramid is that as the number of BTC holders increase the value of currency grows. But the profit of users doesn’t rise exponentially.
You should remember that Ponzi’s schemes exist in any currency. The Bitcoin technology should not be confused with various scam projects on the Internet that can accept this digital currency as deposits. And very often people who are being scammed in such suspicious projects blame the technology itself and not those who had deceived them.

Bitcoin has no value

In comparison with traditional assets like Dollars or Euros, Bitcoin is just a piece of program code. Cryptocurrency owners can only see some numbers in their digital wallets. But how real is their savings? Bitcoin is not backed with gold or government obligations. That’s why Bitcoin critics dismiss its value.
Saying that BTC is not backed with anything is not entirely true. But first let’s figure out how traditional currencies are backed.
After the suspension of the gold standard, most of the currency in the global economy is not backed by either precious metals or foreign exchange reserves. Moreover, many national currencies don’t have commodity collateral: currency issued doesn’t cover the value of goods produced in the country.
But then what is the source of currency credence? The answer is simple – government. As long as the nation-state supports the currency – people trust in it. But if the government can’t or doesn’t want to maintain this trust any longer – the currency fall.
So currency has value as long as people believe in it.
The source of confidence in BTC is in its own intrinsic value that brings this digital currency truly golden. Because the real value of Bitcoin is financial freedom.
Like and share this article if you find it useful 😉
Original article was posted on https://stealthex.io/blog/2020/06/02/myths-facts-on-bitcoin/
submitted by Stealthex_io to u/Stealthex_io [link] [comments]

Non-violent true crime podcast suggestions?

I recently started listening to the BBC’s The Missing Crypto-Queen and have been really enjoying it. /cue Stefan from SNL- it’s got everything: pyramid schemes, bitcoin, shady Eastern European characters, shady Western European characters, a femme fatale, you name it...
Any other podcasts that you suggest relating to fraud, stolen identities, art heists, i.e. anything not overtly related to violent crime?
submitted by dallyan to TrueCrimePodcasts [link] [comments]

Telling OP that whatever money they have in bitcoin now was put in before 95% of the rest of the population, implying that 95% of the population is expected to put money in too to make number go up. Aka pyramid scheme.

submitted by Rupe_Knabu to Buttcoin [link] [comments]

Has anyone else heard of this bitcoin pyramid scheme thing?

Im apart of a Facebook group that’s basically a support group for women who are legit business owners (not MLM scammers) and I’ve noticed in the past week on there 3 women have been spamming people posts talking about how they’ve started online investing and now they’ve turned $100 into $3000 and the typical benefits MLM ppl say to intice ppl. I asked one of the girls about it and it’s soooooo phishy to me. It’s not even a company it’s this Facebook group you have to get invited to and they basically run/communicate from there. They have different levels and you can start off at any level depending on how much your investment is and then you move up levels based on how much you’ve earned I guess? And they have up lines and down lines because I saw ppl talking about their teams. I also think that because I saw someone comment asking about it and someone responded and told them to ask the person who initially messaged them about the opportunity because that’s their leader.
I straight up asked the girl if it’s an MLM and of course she said no. I don’t know much about bitcoin or crypto currency but asked a friend who does and they said it’s too high risk and unpredictable to be a solid investment strategy right now much less get rich quick off of it. Yet these ppl are marketing it as a get rich quick scheme and I’ve been seeing these ppl all over FB the last week
submitted by cheekyblinders82 to antiMLM [link] [comments]

Does anyone see that Bitcoin is a pyramid scheme? (x-post from /r/Cryptocurrency)

submitted by ASICmachine to CryptoCurrencyClassic [link] [comments]

Spanish Prosecution Office Investigating Alleged Bitcoin Pyramid Scheme: $1 Billion in Investor ... (current BTC/USD price is $10,604.80)

Latest Bitcoin News:
Spanish Prosecution Office Investigating Alleged Bitcoin Pyramid Scheme: $1 Billion in Investor ...
Other Related Bitcoin Topics:
Bitcoin Price | Bitcoin Mining | Blockchain
The latest Bitcoin news has been sourced from the CoinSalad.com Bitcoin Price and News Events page. CoinSalad is a web service that provides real-time Bitcoin market info, charts, data and tools.
submitted by coinsaladcom to CoinSalad [link] [comments]

Spanish Prosecution Office Investigating Alleged Bitcoin Pyramid Scheme: $1 Billion in Investor Funds Reportedly Missing

Spanish Prosecution Office Investigating Alleged Bitcoin Pyramid Scheme: $1 Billion in Investor Funds Reportedly Missing submitted by Ranzware to BitNewsLive [link] [comments]

"I agree with the bitcoin message, although whenever I hear it, it sounds like a pyramid scheme of some sort"

submitted by Dunedune to Buttcoin [link] [comments]

This alleged Bitcoin scam looked a lot like a pyramid scheme. Five men face federal charges of bilking investors of $722 million.

This alleged Bitcoin scam looked a lot like a pyramid scheme. Five men face federal charges of bilking investors of $722 million. submitted by swingadmin to technology [link] [comments]

12-11 20:53 - '? Just telling you that any asset which has positive value, no matter how small, has gained infinitely if its original value was $0 (origin of Opie's chart). The log scale is useless because the bottom half of the chart is rele...' by /u/DropaLog removed from /r/Bitcoin within 4-14min

'''
? Just telling you that any asset which has positive value, no matter how small, has gained infinitely if its original value was $0 (origin of Opie's chart). The log scale is useless because the bottom half of the chart is relevant only to those who bought BTC for <$7.50.
Sub-dollar performance (~ bottom third of this marketing marvel) is meaningless. Expecting exponential growth to continue is ...to quote you...
[If you want to learn more about this sort of thing]1
TL;DR: All pyramid schemes are rewarding for those who get in early and get out in time. This is not to say that they're profitable for everyone involved (like all pyramid schemes, Bitcoin doesn't create wealth, merely redistributes it), or that buying into a pyramid showing every sign of collapse is a smart move :)
'''
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Author: DropaLog
1: e*.wikiped*a.o**/*iki/**eat_and_ch*ss*oard_p*ob**m
Unknown links are censored to prevent spreading illicit content.
submitted by removalbot to removalbot [link] [comments]

‪Masters and Slaves of Money 💰 Wow! Very well written and good perspective. #Bitcoin is the world savior. Question: What roll do the “ALT” coins play? My opinion: Alt’s are pyramid schemes.

submitted by Shenron2020 to Bitcoin [link] [comments]

BTC-Bitcoin compared to a "Pyramid Scheme"

BTC has a lot in common with a Pyramid scheme where the top gets rich based on the entry of new investors at the bottom. The difference with BTC is they put a limit on how many new people can enter at the bottom. The base of the pyramid can't grow wider. So, it appears (to me) it is doomed to fail to perform in the future the way it did in the past.
submitted by Big_Bubbler to btc [link] [comments]

Record reveals murder of lawyer linked to Bitcoin pyramid scheme

Record reveals murder of lawyer linked to Bitcoin pyramid scheme submitted by SamHamou to btc [link] [comments]

Is bitcoins fee to secure the network 10% a year?

If we forget about the influx of new users (as Bitcoin is not a pyramid-scheme, Bitcoin does not need an influx of new users, right?), our bitcoins are getting 0.000272% less worth every day, because we pay 25 bitcoins every 10 minutes to secure the network (to the miners). This is about 10% in a year. This is the cost, just to secure the network, so without the fees for sending money.
I know the reward of 25 BTC will get smaller over time, but we want bitcoin to succeed right now, don't we? So how do we justify a cost of 10% a year? My bank doesn't take 10% of my money every year to secure their system...
I'm pro-bitcoin. Just not afraid to discuss flaws.
submitted by AscotV to Bitcoin [link] [comments]

12-28 18:02 - 'A poor medium of exchange whose value is purely speculative in the worst possible way.' (self.Bitcoin) by /u/DavidScubadiver removed from /r/Bitcoin within 61-71min

'''
When the Dutch were speculating on tulip bulbs, and the bubble burst, they had pretty flowers to show for their greed and stupidity.
Sure, some got out with more money than they put in, just like in any Pyramid scheme. Bitcoin like a pyramid scheme acts as a huge transfer of wealth, sucking in money from the masses and redistributing it to those who want to cash in their gambling winnings.
No, it isn’t a pyramid scheme because there is not promise of any returns. It is worse than a pyramid scheme because there is no basis at all for believing there will be returns. It is all based on the greater fool theory—that someone more foolish than you will take you out of your position for more than you paid to get in. While that may be “a basis” for speculating with your hard earned money, and you may wind up up on top, eventually there are no greater fools, the boy declares the emperor has no clothes, and those late to the party lose it all.
You are not “investing” when buying bitcoin. You are speculating on the greater fools coming to your rescue plain and simple. Nothing wrong with doing this. Just don’t fool yourself into thinking you are investing. Investing means you are betting on a company’s predicted sales revenue. Your companies do better than others, your investment does well.
Bitcoin does nothing. It costs money to acquire and provides no benefit above being able to engage in pseudo-anonymous transactions. 99.9% of the population is willing to pay exactly nothing for that privilege. Indeed, most of us would rather earn cash back for using a credit card than be anonymous in our purchase through the use of cash.
In any event, it isn’t worth hundreds or thousands of dollars to be pseudo anonymous. Or even anonymous. To bitch about intermediaries and fees when one is paying hundreds or thousands of dollars for the use of bitcoin is pretty much missing the point completely.
'''
A poor medium of exchange whose value is purely speculative in the worst possible way.
Go1dfish undelete link
unreddit undelete link
Author: DavidScubadiver
submitted by removalbot to removalbot [link] [comments]

[uncensored-r/Bitcoin] A poor medium of exchange whose value is purely speculative in the worst possible way.

The following post by DavidScubadiver is being replicated because the post has been silently removed.
The original post can be found(in censored form) at this link:
np.reddit.com/ Bitcoin/comments/7mnq9c
The original post's content was as follows:
When the Dutch were speculating on tulip bulbs, and the bubble burst, they had pretty flowers to show for their greed and stupidity.
Sure, some got out with more money than they put in, just like in any Pyramid scheme. Bitcoin like a pyramid scheme acts as a huge transfer of wealth, sucking in money from the masses and redistributing it to those who want to cash in their gambling winnings.
No, it isn’t a pyramid scheme because there is not promise of any returns. It is worse than a pyramid scheme because there is no basis at all for believing there will be returns. It is all based on the greater fool theory—that someone more foolish than you will take you out of your position for more than you paid to get in. While that may be “a basis” for speculating with your hard earned money, and you may wind up up on top, eventually there are no greater fools, the boy declares the emperor has no clothes, and those late to the party lose it all.
You are not “investing” when buying bitcoin. You are speculating on the greater fools coming to your rescue plain and simple. Nothing wrong with doing this. Just don’t fool yourself into thinking you are investing. Investing means you are betting on a company’s predicted sales revenue. Your companies do better than others, your investment does well.
Bitcoin does nothing. It costs money to acquire and provides no benefit above being able to engage in pseudo-anonymous transactions. 99.9% of the population is willing to pay exactly nothing for that privilege. Indeed, most of us would rather earn cash back for using a credit card than be anonymous in our purchase through the use of cash.
In any event, it isn’t worth hundreds or thousands of dollars to be pseudo anonymous. Or even anonymous. To bitch about intermediaries and fees when one is paying hundreds or thousands of dollars for the use of bitcoin is pretty much missing the point completely.
submitted by censorship_notifier to noncensored_bitcoin [link] [comments]

Bitcoin is not a pyramid scheme...

Bitcoin is not a pyramid scheme... submitted by ReeferSutherland24 to Buttcoin [link] [comments]

Peter Schiff: Bitcoin is a Pyramid Scheme [Yawn]

Peter Schiff: Bitcoin is a Pyramid Scheme [Yawn] submitted by TommyofLeeds to Bitcoin_Maximalist [link] [comments]

Peter Schiff: Bitcoin Is A Pyramid Scheme [Yawn]

Peter Schiff: Bitcoin Is A Pyramid Scheme [Yawn] submitted by TommyofLeeds to CryptoCurrencies [link] [comments]

Peter Schiff: Bitcoin is a Pyramid Scheme [Yawn]

Peter Schiff: Bitcoin is a Pyramid Scheme [Yawn] submitted by TommyofLeeds to cryptocurrencynews [link] [comments]

Shocking but true: Bitcoin is a pyramid scheme, economist says!

Shocking but true: Bitcoin is a pyramid scheme, economist says! submitted by dyzo-blue to Buttcoin [link] [comments]

Bitcoin Core: A modern form of pyramid scheme?

Bitcoin Core: A modern form of pyramid scheme? submitted by Egon_1 to btc [link] [comments]

Bitcoin not a pyramid scheme Is Bitcoin A Pyramid Scheme? (Yes this is clickbait) Nasgo Is The Next Bitconnect Pyramid Scheme Money man says bitcoin could be a pyramid scheme - YouTube Is Bitcoin a Pyramid or Ponzi Scheme?

This is a pyramid scheme. Bitcoin is not. Bitcoin is not a company. It has no employees and its supply is finitely scarce. No matter how many people adopt it, there will only ever be 21 million bitcoin. The distinctions should be glaringly obvious, but because bitcoin is complex and the very idea of money is not well understood, it can easily be confused. Bitcoin will only become a global ... Lending Tree Chier Economist, Tendayi Kapfidze recently commented on Bitcoin, calling it a pyramid scheme, so here is why his view may be wrong. Over the course of the last 11 years, Bitcoin has traveled a long way for an unknown new invention to the largest cryptocurrency in the world, with a market cap of $130 billion. This Alleged Bitcoin Scam Looked a Lot Like a Pyramid Scheme. Five men face federal charges of bilking investors of $722 million by inviting them to buy shares in bitcoin mining pools. To revist ... Bitcoin is NOT a pyramid scheme, as there is no reward and guaranteed returns for buying BTC coins. Be wary of the people who claim otherwise. However, there have been many platforms that used Bitcoin in their scams, but that tells nothing ... LendingTree Chief Economist Tendayi Kapfidze told reporters at Yahoo Finance January 1st that Bitcoin is “a pyramid scheme” and a scam with no particular utility. Kapfidze made the comments just after co-panelist Oliver Pursche, Chief Market Strategist at Bruderman Asset Management, described his own cryptocurrency investments and said, “(T)here’s something here.

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Bitcoin not a pyramid scheme

This website is not to be trusted, do NOT deposit any money/BTC into this website or any others which claim absurdly high returns. These are scams! Bitcoin not a pyramid scheme Listen to the full episode here https://anchor.fm/dereck-tafuma/episodes/Bitcoin-not-a-pyramid-scheme-e12ha8 Bitcoin is such a r... Is bitcoin a pyramid scheme? Peter Schiff says so, but is he right? In this video we’ll take a look at Schiff’s recent bitcoin opinion and see if it holds any water. nasgo going hard pyramid, new hampshire accepting bitcoin soon, and more!! Sign up with coinbase. buy or sell 100 dollars in crypto currency and get 10 dollars of bitcoin for free with this link ... This video is unavailable. Watch Queue Queue. Watch Queue Queue

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