Is Bitcoin a pyramid scheme or similar to one?

Dan 12/07/2017. 7 answers
Business & Finance Investing

7 Answers

James 12/07/2017.

From google:

A software developer called Satoshi Nakamoto proposed bitcoin, which was an electronic payment system based on mathematical proof. The idea was to produce a currency independent of any central authority, transferable electronically, more or less instantly, with very low transaction fees.

Donut Tim 12/07/2017.

It is not really a pyramid scheme.

Bitcoin is used as a form of gambling where buyers hope to sell them for more than they paid. Its value fluctuates daily as its novelty and popularity changes, Unlike stock where a business is earning money or a bond that earns interest money, there is no reason to expect Bitcoin make money for you.

Judy 12/07/2017.

Not a pyramid scheme, but not anything like a secure investment either. Is skyrocketing right now mainly due to hype.

Billy 12/07/2017.

No, it's not. A pyramid scheme requires investors buy in and then those investors to bring other investors to buy in in order to earn from their investment. Current Bitcoin owners would be receiving commissions or dividends from the sale of Bitcoins to new buyers. That's not at all how it works. Rather, Bitcoin trades somewhat like a commodity, but in actuality, it is a fiat currency. The US dollar, ever since going off the gold standard, has been a fiat currency. Bitcoin and Bitcoin's value operate under the exact same principles as the US dollar and the US dollar's value.

Rowan 12/07/2017.

I bought some yesterday, and some lite coin, the litecoin went down, by four or five dollars, and I was told by my friend to buy more of that because it was cheap, but I had to have some bitcoin, and that went up twenty percent in the last twenty four hours. Hey I understand it's a way for drug dealers to launder money, but that's what half a trillion a year? I'm hoping it goes ten or a hundred times again before it crashes. It went a million times.

Will Therussian 12/07/2017.

Considering a stock is worth 11,000+ today!, sooner or later it will implode! making bunch of people desperately non rich!

oof 12/07/2017.

bitcoin is more unstable than the stock market so just stay away from it.