Post
Topic
Board Bitcoin Discussion
Re: Bitcoin is a inherent Ponzi Scheme, please correct me if I'm wrong
by
Bobtimus
on 31/08/2014, 02:52:57 UTC
Ok I'm looking to write an article for an Australian publication, so if anyone would want to use their real names for quotes, than please let me know. I'm not against Bitcoin or anything but one final query I have. How is it viable to use a currency that is in limited supply. Remember, this isn't land, or oil or gold where there is an inherent value in those resources i.e. you can use those resources for a wide variety of purposes, breeding cattle, running cars and what not. The problem with bitcoin is that you can only trade it with someone who also thinks it is valuable. Wouldn't it be Ponzi like, instead of an charismatic individual, we have an integrated system for a currency that never stops rising. Like if something is in limited supply, then it is highly likely the price will never stop rising, i.e. oil and land. As such, it can also be easily speculated as there will always be a limited supply and it takes one marketing campaign to drive up demand. We have seen that happen many times with land, gold and oil. For a currency, isn't that quite troublesome if people are touting bitcoin as the next financial revolution, where international trade will be facilitated, but its value highly subject to speculation.