Bitcoin & Other Crypto Currencies

You know you still have that one bitcoin you own just sitting on top of that Sega Genesis that sits on top of your 22" CRT television... don't lie to us.

 

ADVCOCARE, pyramid scheme or no?

 

No, MLM. MLM's share similar business model traits but are sustainable, whereas pyramid schemes are not.

 

MLM is probably closer to a Ponzi scheme, no?

 

Not really. In a Ponzi scheme, you don't have to do anything but give up your money. In MLM's and pyramid schemes, you have to do something yourself to make the money.

 

theres always people online and in person willing to pay for my skills

Umm, Fyi, all my gear is current model year. With the truck as an exception. Beta testing gear is a glorious thing.

 

Back up to $1,067.9999 - Imagine if you bought in last sunday ~$500 when it 'dipped' that would be ~$400 per coin.

 

You go ahead and beta test away. I'll wait patiently until it's been done right.

 

Thats what we are here for. Make sure the product is ready for the masses. The last ''flood gate" if you will

 

Minions make the world go 'round

 

HAHAhahaaa - Go make me some Fish Tacos!

 

But in a Ponzi, you don't depend on absolutely building a pyramid. You do need to bring in new business.

 

All of this "imagine if you bought yesterday knowing what you know today" is just silly. When it dropped to $500 were you thinking "tomorrow it will ______". You sound like someone playing the lotto. In 5 days bitcoin could be at $250 or $2,000 with no means to predict any climb and trades on a market that has no transparency on backing. OP just said 3 days ago Damn Chinese. I know. Got out while it was good. I'm no dummy but never stated what their position was but then comes back when the price jumps back up???

I've yet to see any intrinsic value to bitcoin or how it differs from a ponzi scheme. There is no backing to this currency to determine solvency and unlike other fiat currencies there's no transparency as to how many bitcoins are available so it's not like price is relative to scarcity.

Let's suppose I wanted to start a ponzi scheme with stamps. I tell 50 people "Buy this stamp today for $1 and hold onto it... it may go up in value". Those people go out and buy the stamps. I now come back and say "Demand has skyrocketed and that stamp is now $2." A week later I tell them the stamps are worth $200". Those people who originally bought then go out and tell their friends and they buy more stamps. Because I'm the one who prints them, I can make as much as I want and sell as a primary market and allow trading between members on a secondary market that I also control. This might actually be smarter than a ponzi scheme because I've never promised a set of return as people hold onto the stamps with no incremental payments other than when stamps are sold.

 

Close.

In a true ponzi scheme, you don't have to bring in new business yourself, all you have to do is input your own money and the ponzi scheme leader takes care of the rest.

In a pyramid scheme, you are responsible for bringing in new business, hence the "work" required of you.

Real world examples:

MLM: Legitimate business, built like a pyramid; example: Amway, Mary Kay, etc.
Pyramid: Illegitimate, disguised as an MLM but with nothing sustainable; example: Penny Auctions
Ponzi: Completely illegitimate and illegal, usually "investment" opportunities; example: Bernie Madoff.

 

Yes, I got out at a Peak. Thats the way it works. I knew I needed to sell and set myself a limit where I was comfortable getting out.

I made the Chinese remark due to their gov't doing what they did. Knowing that, inevitably it would cause a lull in the market. Wanted to get some gear for the truck before x-mas so I sold. If I was not in a rush, would have held on longer/

The exchangers I use are not the fastest, but they are reliable.

Yes, it is similar to the lotto. In a way. I like the idea of knowing that no mater the money I put in, more than likely I will get it back. WITH A PROFIT>

Doesn't matter. There will always be a market for crypto currency/ anon payment methods.

Want some for free? Start mining it.

 

With anything 'new' there is always resistance.

http://youtu.be/XKMoVAObbhE

 

I wouldn't call it resistance. Not at all.

I think we are looking at it saying "there is so much risk here".

I look at the idea of virtual currency as a positive thing but I want to make sure the risk to me is minimal. It's one thing to play currency markets where your money is moving in and out. Quite another to have all that money tied up in your "bank" of sorts.

 

Get what you're saying. But I would argue that once the US left the gold standard and loosened credit restrictions, much of what we have today is virtual currency (by which I mean that if every person/corporation were to ask for their USD to put in their wallet, there wouldn't be enough paper money to go around). My point from earlier is how the value in the US dollar is derived from faith in the US Government (I wouldn't buy currency in Somalia cause I have no faith in their government/opportunity to invest) and scarcity. So where is the value in bitcoin derived?

I don't think intelligent questions is the same as resistance... Who makes it? Where does the value come from? Pretty simple questions that no one seems to have an answer.

 

Probably similar to diamonds, except there is a bigger market for them.

Good the op made a profit, but I wouldn't buy this into this kind of stuff.

 

I disagree. The value of diamonds is what it is because people value jewelry and the mining/flow of diamonds is controlled by cartels. By restricting the supply of new diamonds, they create additional scarcity which results in an increase in price.

Then there's consumer preference... people prefer new diamond jewelry over used diamonds which drives the price up more. Otherwise we'd all bring our fiancee's to the pawn shop for shopping.

I do agree that at least the OP made some money on it