Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

> I wish I'd put $1,000 into bitcoins then; I'd be a billionaire. I thought bitcoin was a Ponzi scheme.

These are not mutually exclusive statements. Actually, this is how Ponzi schemes work ; -)

(Somehow I never connected Bayer et al. and Bayer & Diaconis. Wow!)



It's not a Ponzi scheme, because those have a specific definition. But it does sort of look like one. And all of the "meme" coins seem to be actual, if incredibly short-lived Ponzi schemes.


It's a greater fool scam.

https://en.wikipedia.org/wiki/Greater_fool_theory

Pyramid schemes, Ponzi schemes, MLMs, NFTs, Crypto, Memecoins... they're all greater fool scams. All based around playing "hot potato" with investments, where early adopters push the potato on later & greater fools.

Memecoins are the most fascinating type of it because with other schemes, there's usually some veneer of legitimacy (i.e. you gotta actually try to scam somebody). I imagine at this point everybody involved with memecoins understands they're scam, and they're essentially just gambling instead of getting scammed. Although, effectively, gambling is its own type of scam.


I think you add some stocks there too. Particularly meme stocks.

Many people "investing" in crypto don't understand that stocks/shares give you have extra value because they pay dividends and give you voting rights for the direction a company takes.


Yes, exactly.


Well then it isn’t not one either. :P


Yeah, I thought bitcoin could never really be used as a currency because it is inherently deflationary, and therefore the price would only go up...

I was not wrong...




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: