[CONTROVERSIAL] Is Bitcoin a Pyramid Scheme? - Debate for Why or Why-Not | Cryptocurrency Scam?

My only concern is mining.
Mining is already break even, if not barely profitable. I looked on reddit and people said that they mainly do it to heat their house, or they have free / flat rate electricity.

When all bitcoin is mined the only thing the miners have left to gain are transaction fees... and that will most definitely be unprofitable.

the downfall I see would be big countries government regulation dropping the liquidity and market cap, as well as the mining issue I mentioned.

however there will be projects that succeed.
And there is definitely money to be made, just don’t get emotionally attached to your investments.
 
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It's not a pyramid scheme for the simple fact that it doesn't involve recruitment and doesn't have a referral system. It could be a scam, just like anything else could turn out to be a scam in the long run. However, it's pretty clearly not a pyramid scheme. I'd be interested to hear the argument for it being one.

I personally believe it will stand the test of time and it may not be the system of money that we all end up using, but it will exist as a payment method for years to come.
 
Nash Commerce said:
My only concern is mining.
Mining is already break even, if not barely profitable. I looked on reddit and people said that they mainly do it to heat their house, or they have free / flat rate electricity.
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Mining is more profitable than ever you have wrong info :)
 
True Miller said:
ye its a pyramid scheme, early buyers win more than later
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By this logic, the stock market is also a pyramid scheme. So are investors in basically every successful endeavor to ever exist. This does not make it a pyramid scheme.

Nash Commerce said:
My only concern is mining.
Mining is already break even, if not barely profitable. I looked on reddit and people said that they mainly do it to heat their house, or they have free / flat rate electricity.

When all bitcoin is mined the only thing the miners have left to gain are transaction fees... and that will most definitely be unprofitable.

the downfall I see would be big countries government regulation dropping the liquidity and market cap, as well as the mining issue I mentioned.

however there will be projects that succeed.
And there is definitely money to be made, just don’t get emotionally attached to your investments.
Click to expand...
Mining is the primary concern, I agree. I believe BTC will hang around but will not be the dominant crypto to prevail.
 
Chipicao said:
Mining is more profitable than ever you have wrong info :)
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“more profitable than ever”
Isn’t saying much considering we are at all time highs. Plus you need to take into consideration hardware AND opportunity costs not just electricity haha. Also, the price has jumped faster than new miners can come into the space. As more miners come in that extra profitability is decreased, again.

I see you didn’t acknowledge my point about when all bitcoins are mined. /:
 
Bitcoin is definitely a pyramid scheme. I would advise anyone reading this to sell any BTC you have asap before the scheme collapses and do not under any circumstances buy lots of BTC.
 
Nash Commerce said:
“more profitable than ever”
Isn’t saying much considering we are at all time highs. Plus you need to take into consideration hardware AND opportunity costs not just electricity haha. Also, the price has jumped faster than new miners can come into the space. As more miners come in that extra profitability is decreased, again.
I see you didn’t acknowledge my point about when all bitcoins are mined. /:
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Oh trust me i know everything about mining, I'm in this business for more than 3 years by now, and on my account i can see exactly how much profit is made, so i will say again your info is wrong. My A10 pro machines run from June 2020 and they make a return of investment in 4 months so now i I'm getting only profit from them.
Actually, i suggest to some guy here on BHW in July to start mining with those ASICS.
Do you have some mining hardware ?
 
Bitcoin is a giant pump and dump scheme based around fear of missing out. The crypto industry is unregulated, so people are free to do things that would land them in jail if done with any other financial product/market. That's why people are worried about government regulators.

The blockchain tech is great for transparency and will be used in many ways in the future. However, at the same time any criticism of cryptos are shouted down by people that have financial incentives to get new suckers to buy crypto.

  • Transactions take hours or days to clear and will only get worse.
  • It isn't distributed. A handful of large miners control the network. Look what happened with Bitcoin Cash.
  • Mining is a giant waste of electricity, which also means the holding cost is huge. Once mining is done, transaction fees will not be able to keep the network alive. The fees will be too large for anyone to want to use it. The use of electricity to perform meaningless math is a huge malinvestment.
  • Bitcoin is not finite, it is deflationary. Once the coins are lost, they are gone forever. Being deflationary incentivizes people to hold bitcoin over spending it. That's bad for network health once mining is done.
  • Cryptos aren't finite, they are infinite. There's hundreds or thousands of them. Better options will replace Bitcoin and will in turn be replaced in the future.
  • A 51% attack is trivially easy for many governments to perform. Will be even easier once mining stops.
  • Bitcoin isn't remotely close to being anonymous. It is promoted that way to draw in suckers that are tech-illiterate.
  • Regulatory risks are rarely talked about and downplayed.
  • Exchanges are constantly being hacked or "hacked." Doing things in person slightly helps anonymity, but increases transaction costs.
  • Bitcoin is not a store of value. A store of value needs to have a stable price.
 
DarkSoze said:
I was am an avid supporter of Bitcoin from the earlier stages and still have a good amount I don't plan on selling any time soon.

However a few days ago with what happened to XRP and Ripple, and how trading platforms are taking it down due to the SEC issues, it's gonna sink to 0$ in no time.
It has opened my mind to an entirely new possibility of government issues that could potentially put Bitcoin at risk(not exactly like XRP since it's not a company, but there are ways). It would make the platforms take it down, and the value would just keep reducing and reducing.

What are your thoughts on this possibly happening, now that BTC is rising to new heights and banks not being very happy about it?
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i usto think the same way...till paypall started using crypto 2 months ago (the 1st 5 coins)i guess they have plans and they are in for the long run since they got the keys
 
mrarowana said:
i usto think the same way...till paypall started using crypto 2 months ago (the 1st 5 coins)i guess they have plans and they are in for the long run since they got the keys
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I disagree about PayPal being in it for the long run. The company is run in a way to maximize quarterly profit. Executives care more about their stock options than the long term health of the company.
  • PayPal stopped refunding the transaction fee on returns.
  • PayPal is always increasing fees.
  • PayPal heavily markets high interest rate loans to users.
If you want to go digging around, you can find all sorts of unsavory things PayPal has done in the past. The only changes and actions they take are to increase earnings. As a result, the quality of their service has and will continue to degrade over time.

I don't view PayPal's or any other large institutions involvement in crypto to be a good thing. Their goal will be to try to monopolize the market and extract the most money possible.

The easiest way for PayPal to do this would be to exploit the inability of the Bitcoin network to quickly process transactions. PayPal can use the infrastructure they already have to process Bitcoin transactions outside of the block chain. That's why PayPal does not allow people to send their Bitcoin to a private wallet.
 
rauza said:
So I love Bitcoin and Cryptocurrency but I know a couple smart people who suspect that it's a pyramid scheme and they have their valid arguments for it which don't really not make any sense (they make sense). I respect these people, and if it was anybody else, I would've completely dismissed their arguments. These are also people who have had made lots of money with crypto in the past but decided to cash out a while ago due to their rationale for why they think it is, so it's not like they never really dabbled in it at all.

I personally, have not really ever thought about it that way. I've profited a lot from crypto and am holding some decent cash flow through some of my investments, but I don't really have any strong counter-arguments as to why or why-not Bitcoin could possibly be or not be a pyramid scheme.

I want to hear from people who can sort of analytically think about this without involving too much of their emotions (pls) about why they may think it is or isn't a pyramid scheme.

I know the average joe answer is "wElL thEy complAinEd aT $123 and now its $12345 so hA!"

I'm just genuinely curious as to some people's "intelligent" thoughts on this matter if there are any. I know it may sound far fetched to some, but the best pyramid schemes are usually the ones that play really deep in to our heads so you can't really ever say for sure. And it'd be naïve for it to not be discussed at all at the possible miniscule nagging thought that it could be. I'm curious if someone can somehow rationalize it in such a way which gives it at least >90% confidence interval for it "not" being a pyramid scheme

Regardless, I'm going to take the L and keep with it because I enjoy working and tracking BTC and cryptos but I just wanted to stimulate a discussion in my head for this as it is interesting to think about.

Anyways, if you don't really have anything other than "FUCK YOU ITS NOT A PYRAMID SCHEME" to say, then I guess we can just leave this thread empty.
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I can imagine what their arguments for saying that it is a pyramid scheme were. But as a user of bitcoin for online anonymous transactions i can tell you its not. It is used vastly on the internet for the same reason and that's why it can not be a pyramid scheme.
 
This is Bitcoin:
 
Can't predict of the future of the bitcoin.

But. Bitcoin is definetely not a "pyramid" scheme. When you are using this term it's means that scheme should have a pyramid structure . With pyramid usually "The company" recruits participants to purchase inventory and to recruit new participants. When it stops growing or even lose the tempo. Pyramids are collapsing.

That didn't happened with Bitcoin when they lost significantly in price and transaction. That was a significant drop.

No matter how many people adopt it, there will only ever be 21 million bitcoin. That's non-sense for any pyramid structure.

Any traditional world currency as a whole is backed only by trust. Including various debt bonds, government bonds or other valuable transactions, this is only a legal form of this trust. Therefore, there is no fundamental difference with cryptocurrencies. In theory, nothing technical prevents bitcoin from going through the same stages.

Will it pass. Nobody knows.
 
Man of Action said:
I disagree about PayPal being in it for the long run. The company is run in a way to maximize quarterly profit. Executives care more about their stock options than the long term health of the company.
  • PayPal stopped refunding the transaction fee on returns.
  • PayPal is always increasing fees.
  • PayPal heavily markets high interest rate loans to users.
If you want to go digging around, you can find all sorts of unsavory things PayPal has done in the past. The only changes and actions they take are to increase earnings. As a result, the quality of their service has and will continue to degrade over time.

I don't view PayPal's or any other large institutions involvement in crypto to be a good thing. Their goal will be to try to monopolize the market and extract the most money possible.

The easiest way for PayPal to do this would be to exploit the inability of the Bitcoin network to quickly process transactions. PayPal can use the infrastructure they already have to process Bitcoin transactions outside of the block chain. That's why PayPal does not allow people to send their Bitcoin to a private wallet.
Click to expand...

i like,or maybe love your theory since nobody is talking about paypall in the crypto
if you ask me its a big thing
Dont know from country your are,,,but did you ever buy a $ or something like that from some one on a street to convert to local money in that country?so let say you did that 10-20 years ago!!
Lets say you did that and the person the kept the original bills today,he would be in a big ++++

thats why i said paypall is in for the long run
they dont care if they sold you a btc for so on and so on date for lets say 50k-100k since they hold the origimal keys,in 20-30 or what ever years that will have more value like over 100k

get what i mean buy a long run
maybe even 50-100 years
 
I don't think BITCOIN is actually a pyramid scheme. that being said, its easy to see that the Markets is influenced through specific trading patterns to control the value of the Crypto. it's more noticeable on other cryptos when the total value increases or decreases specifically to compensate for trend changes.
Not exactly a pyramid system but because it is not regulated a lot of sketchy stuff happens that would normally put you in jail as someone else pointed out.

Don't get me wrong, i use it and i understand its value for now and in the future, but because anybody can manipulate the market with a high enough bid is a bit unstable and unreliable in my opinion.
And i don t see BTC lasting for much longer regardless of what astronomical price it reaches.
 
How is it a pyramid scheme? I don't understand, where are the "tiers" lol
 
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