Post
Topic
Board Bitcoin Discussion
Re: Bitcoin is a inherent Ponzi Scheme, please correct me if I'm wrong
by
Cred
on 31/08/2014, 09:37:43 UTC
Bitcoin is the way out of the ponzi scheme that is the dollar.

A ponzi scheme is when early adopters are promised a return on top what they put in that comes from later contributors.

The Fed created a ponzi scheme after the default of the gold standard by promising returns of 15% to bond holders to rescue the dollar from collapse. Where would this 15% return magically come from? From borrowers taking on ever more debt to buy ever increasing assets while savers buy the bonds at ever decreasing interest rates. Until they can't go any lower then it blows it up when no more takers of the debt can be found.

Now those early joiners from the 80s are sat on multi million pound houses after lowering their borrowing costs along the way while someone joining now is stuck between borrowing at 2% to buy a house that will take 25 years to pay for and probably be worth less at the end, buying stocks at huge risk or sticking their money in a bank to get less than inflation. Now they have another choice. They can save their money as bitcoin.