Former MLB players involved in Cryptocurrency Ponzi

[weams]

https://mlb.nbcsports.com/2020/02/05/former-major-leaguers-victims-of-a-cryptocurrency-ponzi-scheme/

[MurphDogg]

A fool and his money, etc.

[atomic]

Aren’t all cryptocurrencies ponzi schemes by definition.

[Enjoy Terror]

Quote

a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors.

@atomic doesn't appear to be. Cryptocurrency doesn't favor returns for anyone in particular and is analogous to the stock market. 

These guys were just funneling money from new investors to pay out to old investors.

[atomic]

14 minutes ago, Enjoy Terror said:

@atomic doesn't appear to be. Cryptocurrency doesn't favor returns for anyone in particular and is analogous to the stock market. 

These guys were just funneling money from new investors to pay out to old investors.

Yeah but that is how you make money in Cryptocurrencies.  New investors paying out old investors.  

Stock Market you own a piece of a company.  If a company makes money you can be rewarded via dividends and stock buybacks.  Company has assets.  

In cryptocurrency you own nothing.  Nothing is produced.  No profits to divide. No assets.

[SteveA]

Watch out... this topic, might like religion and politics, tends to bring out the zealots.

[Enjoy Terror]

56 minutes ago, atomic said:

Yeah but that is how you make money in Cryptocurrencies.  New investors paying out old investors.  

Stock Market you own a piece of a company.  If a company makes money you can be rewarded via dividends and stock buybacks.  Company has assets.  

In cryptocurrency you own nothing.  Nothing is produced.  No profits to divide. No assets.

Ponzi schemes can be built on the qualities of cryptocurrency, but that doesn't mean cryptocurrency is a ponzi scheme. Cryptocurrencies do not ask you to recruit new people/investors under it. Crytocurrencies don’t promise or give monthly/regular returns. A person enacting a Ponzi scheme using cryptocurrency as a platform can tell you those things and people who don't understand cryptocurrency might believe it.

Using BitCoin as an example, the creator of BitCoin is not sitting on a yacht because he defrauded anyone. BitCoin is not controlled by a head person. BitCoin has never asked for money.

BitCoin is like every other fiat currency. It's value is based in the faith that people place in its stability. That's it. A US dollar has value because people think it has value. It is the same with BitCoin. It happens to be virtual.

You might as well argue that Steam is fraudulent because you never get a physical game.

https://www.sec.gov/investor/alerts/ia_virtualcurrencies.pdf

[scOtt]

1 hour ago, MurphDogg said:

A fool and his money, etc.

A fool and his money are some party.

[Frobby]

38 minutes ago, Enjoy Terror said:

 

BitCoin is like every other fiat currency. It's value is based in the faith that people place in its stability. That's it. A US dollar has value because people think it has value. It is the same with BitCoin. It happens to be virtual.

You might as well argue that Steam is fraudulent because you never get a physical game.

https://www.sec.gov/investor/alerts/ia_virtualcurrencies.pdf

Honestly I think the only real advantage of cryptocurrencies is the ability to launder money and/or avoid reporting financial transactions to tax authorities.    Using it as an investment is purely speculative IMO.

[Enjoy Terror]

4 minutes ago, Frobby said:

Honestly I think the only real advantage of cryptocurrencies is the ability to launder money and/or avoid reporting financial transactions to tax authorities.    Using it as an investment is purely speculative IMO.

100% agree

[Enjoy Terror]

Block chain technology has some use cases that haven’t come to fruition quite yet, so it will be interesting to see where that goes.

I don’t personally own any crypto currencies, but I’ve been sort of following Bank of America’s relationship with Ripple (XRP). It’s currently trading at $.28 if you’re feeling rich.

https://www.coindesk.com/blockchain-shy-bank-of-america-quietly-pilots-ripple-technology

[atomic]

30 minutes ago, Enjoy Terror said:

Block chain technology has some use cases that haven’t come to fruition quite yet, so it will be interesting to see where that goes.

I don’t personally own any crypto currencies, but I’ve been sort of following Bank of America’s relationship with Ripple (XRP). It’s currently trading at $.28 if you’re feeling rich.

https://www.coindesk.com/blockchain-shy-bank-of-america-quietly-pilots-ripple-technology

A coworker bought a significant amount of Ripple at $4 even though I advised against it.  They sold it shortly thereafter at 75 cents each.

[atomic]

43 minutes ago, Frobby said:

Honestly I think the only real advantage of cryptocurrencies is the ability to launder money and/or avoid reporting financial transactions to tax authorities.    Using it as an investment is purely speculative IMO.

Bitcoin doesn’t even work well in that way. It can only handle 4000 transactions every 10 minutes so it is pretty much useless. 

[Spl51]

2 hours ago, atomic said:

Aren’t all cryptocurrencies ponzi schemes by definition.

Wow the first thing we've agreed on.

[24fps]

6 hours ago, atomic said:

Aren’t all cryptocurrencies ponzi schemes by definition.

Yes.  Just as all apples are by definition lemons.