Berkshire Hathaway vice chairman calls crypto "venereal disease," says it should be banned

scavengerspc

Posts: 2,645   +2,858
TechSpot Elite
Bitcoin is a ponzi scheme because it's a near zero-sum game (it's not truly zero-sum due to mining). One person's losses are another person's gains.

Stocks, by comparison, are not zero-sum because they reflect ownership of an underlying (and likely profitable) business.
Bitcoin IS the business, and there is a near zero fraud element.
You buy\mine BC, you know exactly what you are doing and why. The entire process and value is reflected constantly, just like stock prices. And NOBODY will lose money because of a built-in lack of honesty and fraudulent intent that is any worse than the stock market.

A Ponzi scheme has none of those qualities.

I know some folks are probably sick of me saying this, but you place your bets and you takes your chances.

Stocks also have intrinsic value, whereas cryptos have none. Speculative buying and selling of an intrinsically worthless asset = ponsi scheme.

With all respect, that is one of the worse definitions of a Ponzi scheme I have heard.
 
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Eflow

Posts: 47   +94
Bitcoin IS the business, and there is a near zero fraud element.
You buy\mine BC, you know exactly what you are doing and why. The entire process and value is reflected constantly, just like stock prices. And NOBODY will lose money because of a built-in lack of honesty and fraudulent intent that is any worse than the stock market.

A Ponzi scheme has none of those qualities.

I know some folks are probably sick of me saying this, but you place your bets and you takes your chances.



With all respect, that is one of the worse definitions of a Ponzi scheme I have heard.
Bitcoin is not a business. The point of a business is to create profit and pass those profits to its owner(s).

Bitcoin is a service. The problem is that the value of the service (transfer of currency) has little correlation with the exchange rate of Bitcoin and fiat currencies, and that's due to the extreme levels of speculation involved.

People like cryptos because digital currencies have made them wealthier (so far). They have been made wealthier because they were relatively early adopters, and other "investors" have since increased demand for the asset, which is what makes cryptos similar to ponzi schemes.

But what happens when there are no more new "investors" to create demand for Bitcoin? Will Bitcoin prices reach a stable equilibrium, or will low demand send the prices plummeting? I'm willing to bet it's the latter, which is why I'm not relying on Bitcoin for my retirement.
 
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terzaerian

Posts: 1,370   +1,968
Bitcoin is not a business. The point of a business is to create profit and pass those profits to its owner(s).
And so we come to the crux of your perverse worldview. The point of a business is to provide goods and services to paying customers. A gas station's purpose is to sell gas. A farm's purpose is to produce food for people to eat. Putting shareholders as the raison d'etre for a business's existence is a perversion of the fundamental basis of capitalism and why everything from buying video cards to vaccination has become corrupted and dysfunctional.
 
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QuantumPhysics

Posts: 6,308   +7,247
One that thinks GameStop saga was about "wretched excess."

It wasn't, it was about crushing a hedge fund. The degree to which these financial liches misread the acts of revolt against them like that and crypto is comical.


The Reddit, GME, AMC was nothing more than a Pump & Dump
 

Eflow

Posts: 47   +94
And so we come to the crux of your perverse worldview. The point of a business is to provide goods and services to paying customers. A gas station's purpose is to sell gas. A farm's purpose is to produce food for people to eat. Putting shareholders as the raison d'etre for a business's existence is a perversion of the fundamental basis of capitalism and why everything from buying video cards to vaccination has become corrupted and dysfunctional.
The technology behind blockchain my be resistant to corruption and manipulation, but the exchange rates to dollars isn't. Bitcoin is not some noble effort that will bring down the system. It's an inflated asset that is going to end up fleecing a lot of people who don't understand what they bought.
 

tellmewhy

Posts: 183   +86
People need someone to organize them, that's why we have constitution, laws and government.

People need something to help them in the exchanges and economy and that's why we have currency.

Cryptocurrency is simply a more flexible modern form of currency.

It’s existance has to do with the needs of the people who create the demand for things that help them work together effectively.

Now on top of that demand there are and the investors who just buy and sell cryptocurrencies just for the game.
 

ET3D

Posts: 1,785   +415
Ignoring the main point for a second, I agree with him that speculation should be taxed.

As for crypto, by itself it's not a bad thing, but mining is a terrible idea and IMO should be banned and crypto in general should be regulated.
 

Karlos95

Posts: 271   +188

For those that need education on their current systems and how they think bitcoin is bad. Wait till you find out about the banking system and how rigged it is. LOL

Anyone against Bitcoin is against freedom. It is really that simple.

Saying stocks are safer obviously didn't learn from 2008. How quickly they came down and how long it took them to come back to even.And now they are even more inflated. Wait for the next crash, I can guarantee you it will be worse than '08 and gold won't save you.

Nothing can compete with Bitcoin and you no-coiners saying how bad it is are obviously threatened by it. Hence why this old dude that wouldn't understand the tech that powers his computer let alone the numbers in bitcoin hates it, because it is about to destroy the very thing that made him rich. Not that he has to worry, only a few years to go I'd say for him. But I'm sure the amount of people he has told not to invest in it will be pissed at him when they find out how much they lose from his advice.
 

Karlos95

Posts: 271   +188
People need someone to organize them, that's why we have constitution, laws and government.

People need something to help them in the exchanges and economy and that's why we have currency.

Cryptocurrency is simply a more flexible modern form of currency.

It’s existance has to do with the needs of the people who create the demand for things that help them work together effectively.

Now on top of that demand there are and the investors who just buy and sell cryptocurrencies just for the game.
I mean, buying and selling any currency has been long around before crypto was created. So many haven't done their research into it and it shows.

Can't give them facts because they'll respond with propaganda from the same people who will be destroyed by it. LOL