2.23.2022

Bitcoin will be declared a Ponzi Scheme by the SEC; Elon Musk knows this

Archive: https://web.archive.org/web/20220223154122/https://www.naturehacker.org/2022/02/bitcoin-will-be-declared-ponzi-scheme.html

So with Proof of Stake coins soon to be labled securities by the SEC, we might have thought that bitcoin was safe.  Think again.

The definition of a ponzi scheme is a scheme that lures investors and pays profits to the earlier investors with funds from later investors.  This is exactly how Bitcoin works.  Bitcoin lures investors with the notion that due to its permanently limited supply people in the future will have to pay more for coins, making the investment go up over time.

To be safe get coins that are proof of work, preferably an energy efficient form like GPU and CPU minable coins, and that have a fair distribution model like Dogecoin, GRIN, Monero, Raptoreum, Ravencoin, Ethereum Classic, or Ergon.  Each one of these continues to offer coins upon mining forever, and eliminates the potential of bieng a ponzi scheme and eliminates economic rents on later investors.  The most fair are Grin and especially Ergon.

Will bitcoin die or will it get around this?

It will probably introduce a tail emission of say 0.1 bitcoin to try to get around this regulation, but that will come after the impact has already been done and dogecoin takes the top spot.  I am more hopefull that bitcoin cash (BCH) will be nimble and avoid significant damage when this happens.

2 comments:

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