Bitcoins: The Second Biggest Ponzi Scheme in History

[dannno]

AH yes, but there's nothing to stop the banks and governments from creating their own blockchains. Heck, in 20 years everybody might have their own little local currencies.

There are already hundreds if not thousands of legitimate competing crypto-currencies, but they have to be adopted to be successful. Bitcoin is the most widely adopted at the moment.

Well, that isn't really spending it. That's diversifying your investments. I'm basing this position on the assumption that the long term goal is to create a commonly used alternative currency.

You don't need a common currency, fewer is more convenient but there can always be exchanges.

Here's what I'm thinking: The dollar is structured to depreciate as more currency is introduced into the system. If there were commodity backed currencies in circulation, I think we could assume their values would fluctuate along with the demand of the underlying commodity.

But Bitcoin is structured so that it should never go down in value.

If I have $20 in fiat currency, and $20 in Bitcoin, why would I spend the Bitcoin when I know the dollar is going to depreciate? Answer is: I won't.

Therefore, I don't think that it will become a common currency because the finite design will encourage hoarding.

Bitcoin has gone down in value, due to demand, it went from $1200 down to around $300.

What you are referring to is the fact that bitcoin has controlled inflation, which is slower than the rate of inflation of fiat currencies. So over time it will gain value over fiat currencies, that is correct.

So what will happen in a hyper-inflation scenario is you will go out one day and be like, ahh man, a burger costs $600.. The next day you will be like, ahh man, a burger costs $800... I better spend these dollars I have now before they become more worthless, and I don't want to replace the dollars with more dollars because they just go down in value, so if I ever get dollars, I'm going to immediately exchange them for bitcoin. If everybody did this, then eventually what will happen is nobody wants the fiat currency and everybody wants the crypto.. That's when things get exciting, and that is when the early adopters get rewarded for investing in something that people needed before they knew they needed it.

 

[angelatc]

. If (for any reason) nobody wants the fiat currency and everybody wants the crypto.. That's when things get exciting, and that is when the early adopters get rewarded for investing in something that people needed before they knew they needed it.

That's the argument of people who claim this is a Ponzi scheme - that the people who got in early aren't in it to use it as a currency. It's an investment.

What will the BTC holders get rewarded with? Dollars?

 

[dannno]

That's the argument of people who claim this is a Ponzi scheme - that the people who got in early aren't in it to use it as a currency. It's an investment.

It's both. It is a currency when it can be and an investment if you are holding onto it. I spend it when I can, besides gold and silver you can buy all sorts of vaping equipment, electronics and whatnot online. Not a lot of places to spend it locally where I am yet. But it is also an investment. When I spend BTC I usually replenish it because like you said it is better to hold BTC than dollars.

But the reason I don't use it as a currency that often is because it isn't widely used yet.. the reason is because most people don't know about it and what the advantages are. At some point, that may become more clear to more people, at which point it will be very easy to accept and spend BTC because a lot of other people will be doing it too.

What will the BTC holders get rewarded with? Dollars?

Probably not, they will have BTC that is worth a LOT. They will be able to buy gold, silver, property, businesses, equipment, etc.. and whatever they can't buy with BTC they can buy with gold, bought with BTC.

 

[angelatc]

It's both. It is a currency when it can be and an investment if you are holding onto it. I spend it when I can, besides gold and silver you can buy all sorts of vaping equipment, electronics and whatnot online.

Where do you shop online that accepts it?

 

[angelatc]

IProbably not, they will have BTC that is worth a LOT. They will be able to buy gold, silver, property, businesses, equipment, etc.. and whatever they can't buy with BTC they can buy with gold, bought with BTC.

How would people put money into it (and drive up value) if the people holding it won't sell it for dollars?

 

[dannno]

Where do you shop online that accepts it?

https://www.fasttech.com/

https://www.misthub.com/

https://www.amagimetals.com/


Can buy on amazon using:

http://bitcoinist.com/2-3-billion-people-use-bitcoin-amazon/


Can buy at Home Depot, CVS, etc using:

https://www.forbes.com/sites/clareo...-amazon-home-depot-cvs-and-more/#61b3fc002de2

 

[angelatc]

https://www.fasttech.com/

https://www.misthub.com/

https://www.amagimetals.com/


Can buy on amazon using:

http://bitcoinist.com/2-3-billion-people-use-bitcoin-amazon/


Can buy at Home Depot, CVS, etc using:

https://www.forbes.com/sites/clareo...-amazon-home-depot-cvs-and-more/#61b3fc002de2

Looking more for a way to accept it, I guess. I am not going to build a site, and none of the listing sites I use allow it.

 

[dannno]

Looking more for a way to accept it, I guess.

At an online store or for individual transactions?

 

[angelatc]

At an online store or for individual transactions?

I sell stuff online. But none of the venues I use allow it. I don't have much interest in investing much time in it, but I'd be open to accepting payment.

 

[specsaregood]

I sell stuff online. But none of the venues I use allow it. I don't have much interest in investing much time in it, but I'd be open to accepting payment.

Although we made it available years ago as an option, we have never had any of our hundreds of customer request being able to accept it yet.

With that said, both https://www.coinbase.com and https://bitpay.com/
make it super simple to accept it. I preferred coinbase, fwiw.

 

[kpitcher]

Where do you shop online that accepts it?

My regular - at least once a month or so - bitcoin purchases include :

gift cards with bitcoin using gyft.com
lots of tech products from newegg.com
ebooks and games with humblebundle.com

Use a bitcoin backed credit card for the average retail merchant, it converts BTC to USD on demand

I try to use BTC as often as I can

 

[timosman]