So is Crypto a pyramid scheme or something else?

[Celerity]

9. DU is probably the worst possible place to discuss BTC that I have seen. Years ago, a DU poster put up dozens of

Last edited Sat Dec 7, 2024, 11:38 AM - Edit history (1)

DU posts, going back to when it was under 100 dollars per BTC, and moving up to the 10,000 dollars or so valuation per BTC (down from around 20K USD, which obviously , at a present near 100K USD per BTC valuation, was simply a cyclical drop), with each post saying it was dead, done, buried (and usually employing the utterly failed 'tulip bubble' false analogy) and anyone holding it was a fool who would lose everything. The higher it went, the more the bitterness and doom-casting was evidenced in the posts.

I have seen the faulty 'tulip versus bitcoin' attempted comparison (mentioned above) since I joined DU in mid 2018. It fails at multiple base levels.

1. Bitcoin is a fungible asset, tulips are not. (fungibility is the property of a good or a commodity whose individual units are essentially interchangeable)

2. Bitcoin is durable, tulips are not. Tulips are a plant with a limited lifespan, especially for the flowers once they bloom. Bitcoin, once mined, goes onto the permanent de-centralised blockchain public ledger. To transfer bitcoin, the blockchain verifies the sender's public and private keys, and the recipient is given a new private key. The transaction is recorded on the blockchain in a file and becomes part of an automatic verification process.

3. Tulips require a complex physical supply chain/delivery process, one that can take a long time and can be impacted by physical conditions. Bitcoin can be transferred to someone anywhere on the planet within seconds or minutes, via any device that can access the stored bitcoin and the blockchain on the internet.

on edit:

4. Divisibility: One Bitcoin can be divided into smaller units. Tulips cannot.