Calling Bitcoin a Ponzi scheme would be unfair to Ponzi schemes Robert McCauley, an associate member of the Faculty of History at the University of Oxford has suggested that despite Bitcoin being touted as the biggest performing asset of 2021, the number one ranked cryptocurrency is ‘worse’ than the infamous Ponzi scheme.In an opinion article published by the Financial Times, McCauley noted that comparing Bitcoin to the Ponzi scheme is an understatement because both do not have the same endgame and constitute a ‘deeply negative-sum.’ The scholar suggested that investors who opt to purchase Bitcoin are not guided by the goal of generating an income, but it is a zero-coupon for long-term returns as it promises nothing. According to McCauley, Bitcoin has no fundamentals for investors to make money unless they sell their holdings to another person. McCauley seemed to contrast cryptocurrencies with other financial instruments like Stocks or Bonds, whereby virtue the contracts are bound to create income, regardless of whether the investors speculate the value of share or a bond where he mentioned that Bitcoin has no fundamentals to make money unless their holdings are sold to the other person. McCauley also raised concerns that a crash in stablecoins pegged to the dollar could be the tipping point for Bitcoin as it will also disrupt the whole crypto ecosystem. Further, he pointed out that Bitcoin’s cash flow is similar to a penny stock used for pump & dump schemes while investors only buy tokens in the desire of selling them to someone else for a more significant amount of money. He further predicts that Bitcoin will keep having such Pumps & Dumps while fear of missing out (FOMO) being a catalyst, leading to a different ending than regular Ponzi schemes. He further distinct Bitcoin from Ponzi 101, where Bitcoin uses more energy which makes it resource intensive.
Don't worry. Your $500 worth of bitcoin will soon no longer cause massive pump n dump ripples in the Bitcoin economy. For those who are almost always wrong and have no understanding about bitcoin, i generally recommend not buying. You will always have an excuse why you sold to the institutional investors who understand these subjects better than you.
who to believe, the world's greatest investor in history, Warren Buffett, a professor of economic / history at the University of Oxford or a sucker / Pump-n-dump victim such as Space Ghost ? what an easy choice !!
Cryptocurrency crime at record high, in the billions According to blockchain researcher Chainalysis, scams have proved a major component of this with revenue from fraud rising 82 percent in 2021. Meanwhile law enforcement agencies have increasingly tried to tackle cryptocurrency-related crime by seizing digital assets. As of November 2021, the US Internal Revenue Service reported it had seized $3.5bn in cryptocurrency during the last financial year.
Bitcoin Could Reach $100K And Overtake Gold's Market Share: Goldman Sachs - TheStreet Goldman Sachs, Bloomberg reports, puts bitcoin's float-adjusted market capitalization at just below $700 billion or 20% of store of value market (assets that gain or stay stable over time). Gold is presently at $2.6 trillion. The investment firm raised the possibility of, in the next five years, bitcoin making up as much as 50% of the entire store of value market. This would put its value at around $100,000 and an annualized return of between 17% and 18%.
Warren Buffet is in his 90s, and a professor is the last person to take investment advice from. HODLing is simple, but it's very hard. Most of you are not gonna make it and will be compelled to buy in at a higher price out of financial self preservation. Listen to Bitcoin rooms on Clubhouse App for extreme alpha, chat and listen to some of the smartest/richest people around.
Mr. Buffett is still making $ hand over fist, unlike you, who is an easy mark for pump-n-dump con artist. the professor, in addition to authoring several books, is also paid BIG bucks as a consultant to wall street firm. on the flip side, there is you
You realize "buy and hold" was invented and people (especially people like Buffett and Bogle) have been doing it and singing its praises long before the HODL typo on a forum, right? HODL'ing isn't hard - millions have been doing it long before crypto came around and there are many doing it with crypto, too.
People have been HODLing indices like S&P 500 and other investments for decades...but the crypto maniacs marketed it like it's a new thing so weak hands don't cash out and ruin their ponzi scheme. lol
if you bought and held bitcoin for the last decade you would be outperforming every other investment strategy, so why isn't everyone doing it? again, simple but hard to do Value investing no longer works in our easy money system, it's all momentum/meme trading, where companies have insane P/E ratios. Ironically, bitcoin is a return to value investing, it is engineered for long term savings. But there is no way a guy in his 90s is going to grasp that, regardless of his earlier success.
"Investing" in crypto does feel like a game of greater fools. Market has depressed under 2T, yet we're seeing musical chairs with rotating pumps around different layer 1s, nfts and gaming tokens. Whales have the upper hand influencing BTC to the point where it's not funny. But if they string along more institutional investors looking for last year's impressive yields, the music will play for a bit longer and act like Tesla. As for what happens in the future, I have no clue. I can't say this is different with passive ETFs though. Most stocks did poorly last year, yet it's hard to believe on the mainstream with S&P ripping to record levels. That's a bit of an echo chamber in itself, and also poses a similar question of where the money would go while cash is progressively debasing.
They had to “invent” their own special language to describe this Bitcoin journey of self discovery and self reflection.
I feel comfortable holding bitcoin for the rest of my life. There is not a single asset out there that I share this same comfort level. I dont need an exit strategy out of Bitcoin. If bitcoin succeeds, we are still very early. If bitcoin fails, we are heading into a life cycle of Idiocracy full of President Comacho's like Trump and Biden.
