I never (nor would ever) claim to be a “Bitcoin” expert. I can tell you this however, there is probably less than a .01% chance I would ever buy one (or heaven forbid more than 1). Here are the definitions of “Pyramid Scheme” via Wikipedia and Investopedia:
Pyramid Scheme via Wikipedia:
A pyramid scheme is an unsustainable business model that involves promising participants payment or services, primarily for enrolling other people into the scheme, rather than supplying any real investment or sale of products or services to the public.
(oh yeah, this is a good one. Let’s mine Bitcoins from home now!)
Pyramid Scheme via Investopedia:
A pyramid scheme is initiated by an individual (who is Satoshi anyhow??) or a company that starts recruiting investors with an offer of guaranteed high returns. As the scheme begins, the earliest investors do receive a high rate of return (early miners I suppose), but these gains are paid for by new recruits (hello $BTC) and are not a return on any real investment (but…Bitcoin is virtual…and limited in production like a Babe Ruth Baseball card!!!).
Bitcoin. My definition (since other definitions are too lengthy and really don’t tell me a whole lot):
If I had to define a “Bitcoin” it would be this (again, I am not an expert and very uneducated in the subject):
A “Digital Currency” that is not backed by anything, “supposedly” limited (Um…who’s to say there isn’t going to be more anyway by some crazy virus or something, or you accidentally delete your Bitcoin because you had a crash or something. Do they have a 800-recoverBTC number?), can’t touch it, can’t see it, and stored in this virtual wallet that you can’t put in your purse or pants.
I am sorry…call me skeptical. Call me ignorant. Call me whatever you want. But this whole idea seems very “Pyramid Scheme circa 1980′s” And this seems to be a global scheme that has brought out some of the craziest of the crazies.
I now know I have a whole new level of haters.
I guess I will stick to buying USD’s and EUR’s and all the other world currencies that have some sort of GDP. People living in respective regions. Oh, agriculture and natural resources. Oh, innovative people who live locally and are growing globally. Oh and…
Chief Currency Strategies, Wizetrade
Disclaimer: I own and never plan on owning Bitcoin. I need to ask someone if I can short this thing? You think that’s possible??