Notice the panic, the excitement, and the drive to promote bitcoin. Everyone and his dog is buying bitcoin. However, once youre a convert, and you get into the swing of this, youre going to stay in and work on persuading others to buy. Similar to Bitcoin trading, which is the driving factor behind the rise and fall of its price, forex trading also has a considerable effect on the global economy. Its not Amazon or Apple stock. However, what these proponents of bitcoin seem to be missing is the reason for the demand. It doesnt come as a surprise as its common among mainstream media outlets to sensationalize news to gain more readership. Bitcoin is known for its similarities with gold the purest form of money until it came along.
Why is Bitcoin not a pyramid scheme?
Notice this emotional state, this panic. Many regular folks ended up bankrupt. One of the leading financial media outlets just called Bitcoin a grand pyramid scheme. If you found my post helpful, feel free to send a small tip to Visit the, bitCoin Q A Site to ask questions or share knowledge. There were also stories in Silicon Valley about receptionists and other admin staff at start-ups whose exercised stock options were being valued so highly at tax time that they ended up owing hundreds of thousands of dollars in federal. If you get in and get out, you can extract some wealth from the suckers down the line from you. Well thats not necessarily true.
Bitcoin is an ideal topic to bitcoin is not a pyramid scheme do just that. When everyone else is selling, its time to buy. The problem is that when most people get a big win, they plough it back into the system. I have friends messaging me asking, What do you think about bitcoin? When everyone else is buying, its time to sell. Everyone was buying dot com stocks.
Ref : Financial Times, investopedia, image : NewsBTC, financial Times: Bitcoin is a Pyramid Scheme was last modified: January 4th, 2017 by Gautham. The author, in a conflicting, self-contradictory piece compares the trading volume of Bitcoin to that of other traditional fiat currencies and concludes the cryptocurrencys trading volume to be zero. Member, offline, activity: 294, merit: 251. The prices of those stocks shot up, and when many companies went bankrupt, people lost all of their money. Also, it is worth noting that the global economic situation, where fiat plays a major role is one of the driving forces behind investment in Bitcoin. For those who are confused, Uzbekistani soms is a legal tender and a valid medium of value exchange.
Is Bitcoin a Pyramid Scheme?
If getting plenty of page views was the mission, then it has definitely succeeded. If you think bitcoin really is a great investment, then you will want everyone to believe what I have written, and to steer clear. However, the more you get in, and stay in, the more likely it is that you will be one of the suckers holding the bag when this thing crashes. When all these regular people who have their life savings in bitcoin notice that the price is dropping, they will sell, probably at a loss. But in the very next line, referring to CIAs practice, the article compares Bitcoins total market capitalization with that of Uzbekistani soms.
The number one rule of investing is dont follow the crowd. This will make the price go down further, triggering more panic, and the negative spiral will begin. Just as with a casino, bitcoin (at these elevated prices) is a system that is designed to extract your wealth from you. Those dot com stocks also rose with the dot com bubble, but they didnt become worthless after it popped; they did, however, halve in value. So theyre trying to keep the bubble growing. Even though their brokerage firm was a market-maker in nvda, they didnt know what nvidia was. Org or visit the project thread to help make Bitcoin prices more human-friendly. I did lose hundreds of thousands of dollars on those stock purchases, and I had cashed-in nvidia stock to buy them, stock that would now be worth tens of millions of dollars. Everyone is behaving like this is an emergency.
Bitcoin is NOT a pyramid scheme Hacker Noon
Is it any different from speculative forex trading? Maybe someone should tell that to people who are hedging their local currency against the dollar or hoarding dollar under the fear of local currency losing its value. Given the decentralized nature of Bitcoin, the source of information used to draw a conclusion is irrelevant. You might want to convert some of your dollars into this currency for fun, but make sure you only convert as much as you would be happy to lose, which for most people is nothing. This is a self-fulfilling prophesy.
The author also questions the credibility of Bitcoins total market capitalization stating the absence of any prior practice. If I buy bitcoin today, it will be more valuable tomorrow because others have bought it at a higher price. This is a great opportunity for self-awareness. Apple and Amazon are companies which generate revenue and profits, and a share in these companies represents ownership in something that is growing. We want to be able to keep buying the stock at the lower price. You might argue that people who invested in companies like Amazon during the dot com bubble didnt lose all their money, and actually probably made money. And the price is reflecting that. If you bought Apple or Amazon stock early on, then you bought something that had a massive hidden future value, and as that value was revealed, you benefitted by investing in it very early, before the value was apparent. Regarding the pyramid scam, maybe the author is in a better position to offer some clarification, for there is no indication whatsoever that the money received from fresh investors is used to pay off others. It is a well-known fact that the forex value of the currency is directly related to multiple factors in which trading plays an important role. It looks like a Ponzi scheme or a pyramid scheme.
The article on Financial Times has managed to gain the cryptocurrency communitys attention. Meanwhile, what Im actually owning is a bitcoin. Your bitcoin is not a pyramid scheme coins are going up because the sucker after you is buying coins. The proverbial last nail in the coffin comes in the form of an argument about trading and currency. This bullish mania will suddenly flip. I believe that bitcoin will be around in the future, and that it will not go to a zero price.
Bitcoin isnt the future of money its either a Ponzi
Their argument is that only a small percentage of the world currently has bitcoin, and that everyone will eventually need to use bitcoin. Please give this article some claps, and follow me on Medium. This is also a demonstration of the standard operation of a bubble. Cryptocurrencies are important and valuable. Its like going to a casino. Ive bitcoin is not a pyramid scheme been getting into a lot of discussions with supporters and promoters of bitcoin, who tell me that the price of bitcoin is going up so fast because there is a limited supply and an increasing demand. Another sign that this is a bubble is the way that those who own bitcoins are trying to persuade everyone who doesnt own them to buy them. There is a limited number of bitcoins, and there is a great demand for them, so the price is shooting. The same mechanism that has led to this run-up, a form of mass hysteria, will also potentiate a massive sell-off and crash. However, it seems like the article conveniently forgot the cryptocurrency trading platforms and numerous BTC/Fiat currency pairs in action on a daily basis.
How will it crash? This is because the bubble mania is a two-sided coin (pun intended). I bitcoin is not a pyramid scheme remember the dot com bubble. Also, in the current situation, gold continue to be a widely traded precious commodity. My advice is to pay as much attention to your internal state as possible. Bitcoin (and the like) is a scheme valued at present on the hope of an ever-increasing number of folk paying (in real value) an ever increasing price - for a token of no intrinsic value.