Cyph3rp9nk on Nostr: Because Bitcoin is not a pyramid scheme - In a pyramid scheme the last ones to enter ...
Because Bitcoin is not a pyramid scheme
- In a pyramid scheme the last ones to enter have no profit.
- With Bitcoin the last ones to enter will benefit equally from its deflationary (or slightly inflationary until 2140) nature.
If we assume that everyone is in Bitcoin and productivity increases, the late entrants will see how every year they can buy more goods and services for less money.
The formula is easy = Bitcoin/(Total goods and services).
Currently people do not benefit from the productivity increase because it is diluted by currency depreciation.
For example, cars are cheaper to manufacture than ever and yet they are more expensive than ever.
In fact the Fiat system is like a pyramid system but inverted, money instead of flowing from bottom to top, flows from top to bottom (Cantillon Effect) and it is those at the bottom who suffer the most.
So please don't go back to saying that Bitcoin is a pyramid scheme. Obviously as in any technology or new monetary form, the pioneers can be benefited or also harmed, if not tell it to the one who paid 10000 bitcoins for a couple of pizzas.
- In a pyramid scheme the last ones to enter have no profit.
- With Bitcoin the last ones to enter will benefit equally from its deflationary (or slightly inflationary until 2140) nature.
If we assume that everyone is in Bitcoin and productivity increases, the late entrants will see how every year they can buy more goods and services for less money.
The formula is easy = Bitcoin/(Total goods and services).
Currently people do not benefit from the productivity increase because it is diluted by currency depreciation.
For example, cars are cheaper to manufacture than ever and yet they are more expensive than ever.
In fact the Fiat system is like a pyramid system but inverted, money instead of flowing from bottom to top, flows from top to bottom (Cantillon Effect) and it is those at the bottom who suffer the most.
So please don't go back to saying that Bitcoin is a pyramid scheme. Obviously as in any technology or new monetary form, the pioneers can be benefited or also harmed, if not tell it to the one who paid 10000 bitcoins for a couple of pizzas.