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RE: Is Bitcoin a Ponzi too? A Simple Explanation about Where Does Money Come From for Dummies
Nope a stock is not a ponzu scheme and steem is not either.
I am sick of people that cannot understand how things calling them Ponzi schemes, so they can sound smarter than they are.
Ponzi scheme: middle man takes person B's money and gives it to person A and calls it "earnings." Stock market: middle man takes person B's money and gives it to person A and calls it "earnings." Please explain the difference to me. No hatred here...I wanna learn.
I think you are right in a way. If we are not strict with the definition of a Ponzi scheme, a lot of things can be classified as Ponzi.
People who call Steem a Ponzi are in fact implying that stocks and other crypto-currencies (including Bitcoin) are also Ponzi. Which obviously does not make sense.
When you buy a stock in company (or a Bitcoin token), you do it because you assume that in the future there will be someone else who will buy it from you at a higher price. So yes, the financial outcome of your current investment depends on someone else making a new investment in the future. If we treat this as a valid symptom of a Ponzi scheme (which is wrong!) then yes, most financial instruments (Steem included) are Ponzi schemes.
Agreed. Or if we were in a brokerage industry and didn't want to get into legal trouble we'd simply point out they are 'speculative investments'. Same difference.
@gmalhotra " Where does the money come from? Obviously from STEEM and Steem Power holders"
please again give little more attention to the above sentence which @clayop written in his post and most easy sentence at the end in conclusion is that Steemit platform that rewards content creators and curators through redistribution.
So in Steemit you only get your earning through contents rewards,curation rewards in distribution and redistribution.
I think @gmalhotra has a good point which I explain in my reply to him/her. No need to bash people for asking legitimate questions.
In a Ponzi, person B still has a claim on the money, despite it having been fraudulently distributed to A.
When company earns profits from customers (B) and then gives those profits to shareholders (A), B no longer has any claim on the money.
That is the difference.
Now it is possible that some companies are indeed Ponzies, where earnings are nonexistent or overstated, and money from other investors is misrepresented as earnings, but that is not the general case.
Look no further then into your back pocket and pull out one of them crisp bills And ..Voila the great note of the Federal Reserve. The biggest Ponzi scheme ever. So big even Charls Ponzi him self would be in shock that they pull the wool over the publics eyes on this one. It makes me laugh when people say steemit is a scheme, yet they rely on the fiat currencies of central bankers.
I say if it's got trust it has purchasing power.
absolutely @knircky say right, the people who think or comments that stock or cryptocurrency like bitcoin or Steem is ponzi actually jealous or the people of third party like ponzi,scam and hyip schemes.
Definitely am not jealous. I wrote this: https://steemit.com/ponzi/@gmalhotra/ponzi-vs-stocks-vs-bitcoin-vs-steem-my-opinions
Its a full explanation of my views... If you care to read it. Just trying to create a healthy dialogue... No jealousy :)
@knircky Thank you i'm tired of the nonsense too