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My collection of amazing early Bitcoin comments, right here from Reddit:
On buying (or not) a gaming rig to mine Bitcoin: “With the difficulty skyrocketing and exchange rates sitting stagnant at $5~8 for the last week or so, you pretty much missed the boat to buy dedicated mining hardware, IMHO. If you already have the hardware, or are looking for an excuse to buy a couple bitchin' new graphics cards for a gaming rig, there's definitely money to be made mining when you're not using it. But I don't think I'd drop $1k into a rig that's only to mine with unless it was $1k I'd blow on something even more retarded. I certainly wouldn't sink next month's rent into it.” https://reddit.com/AskReddit/comments/hnp7f/_/c1wuv1b/?context=1 On easily cashing out Bitcoin using mtgox: “I think getting money is not that difficult. The daily volume on mtgox is over $100K, so I think anyone can currently sell Bitcoins for USD without problems.” https://reddit.com/AskReddit/comments/hnp7f/_/c1wuhjh/?context=1 On it being $10: “Is Bitcoin 10 usd yet?” https://reddit.com/Bitcoin/comments/hpq6c/is_bitcoin_10_usd_yet/ Bonus: Snapshot of the isbitcoin10usdyet website from 2011: https://web.archive.org/web/20110606125320/http://www.isbitcoin10usdyet.com/ Mtgox might disappear: “400K bitcoins is $4M dollars. Given all risks and uncertainties around bitcoins, no wonder some of the early founders exit their investments. Tomorrow mtgox or dwolla may disappear. It is the matter of one government intervention.” https://reddit.com/Bitcoin/comments/hq1wj/_/c1xgesq/?context=1 Bitcoin is terrible at friendly front-end: “This is a dangerous point-of-view. The entire bitcoin ecosystem is ugly, confusing, and deeply unusable. Really think about the questions posed in the article. The client works, as in, it creates a functional front-end for some bitcoin-related tasks, but it isn't at all designed for how humans would want to interact with the currency. The point of the article isn't that the client is hard, it's that the client works pretty well for obsessive nerds (present company included), but if bitcoin is really going to succeed at the goals it sets out to accomplish, it needs to not only be usable by normal people, it needs to be exceptional. If you think it's reasonably usable, you're welcome to that opinion, but please understand that you're the exact sort of person Mr. Falkvinge was referring to. Great with complex logic, terrible at friendly front-end.” https://reddit.com/Bitcoin/comments/hrqpm/_/c1xtfuy/?context=1 On wallets going out of sync: “One thing that I think is lacking is the ability to functionally use wallets on different machines as they will tend to get out of sync. This might be able to be overcome if new addresses were deterministically created from a seed contained in the wallet, but there are probably better ways. Also, the UI for the official client is kind of a bone.” https://reddit.com/Bitcoin/comments/hrqpm/_/c1y730k/?context=1 On Bitcoin’s ease of use: “In fact, BTC is in such an infant state right now only enthusiasts investors, and geeks who can actually grasp how the system truly works, are using it for real. The usability issues raised by the article are real. No grandma, or any well respected enterprise for that matter, would accept working with this type of GUI. If anything, a REAL enterprise backend still needs to be developed to handle the BTC's ungly guts, with all transactions details, hashes, mining, wallets, proxy connections, peer discovery via IRC channels... I mean... this is all too RAW for the end user. I can see a near future where startups will begin to offer user friendly GUIs, online access, maybe even online banking for your bitcoin accounts, automated backups and safety mechanisms to protect your coins in case of theft. All of us geeks will end up supporting the bootstrap of this network so that, later on, your grandma will be able to use this just as she would use a credit card today.” https://reddit.com/Bitcoin/comments/hrqpm/_/c1xungz/?context=1 rBitcoin is not a sub for memes: “This isnt a subreddit for memes. Take it back to pics” https://reddit.com/Bitcoin/comments/i7z0v/_/c21m3ld/?context=1 I think I’ll keep my money elsewhere: “This further reinforces BC's image as nothing more than a Ponzi scheme. When the distribution is skewed that heavily towards early adopters, they will have almost total control over the market. Those 32 could manipulate to their hearts content. I think I'll keep my money elsewhere....” https://reddit.com/Bitcoin/comments/ifl26/_/c23e3ei/?context=1 Tulip mania: http://en.wikipedia.org/wiki/Tulip_mania https://www.reddit.com/AskReddit/comments/hnp7f/i_just_invested_half_of_my_next_months_rent_in/c1wuhkt/
Why Ethereum Problems Make UMI the Flagship Among the New Generation Cryptocurrencies
https://preview.redd.it/8skuypxp9lj51.jpg?width=1023&format=pjpg&auto=webp&s=ba5a38ba592428f92dc7c1943a780ff127132875 Ethereum cryptocurrency that comes second in terms of capitalization on the crypto market is traditionally seen as fast and profitable. However, over the last few weeks it's had a rough patch. Since early August, the network has had huge queues of transactions pending processing while fees have skyrocketed and surpassed the historical high. The main issue though is that even fees of a few dollars per transfer don't help get rid of the“traffic jams”. The cause of this is numerous DeFi projects and a huge number of financial pyramids based on the Ethereum platform. Both generate excessive load on the network. The situation is downright unpleasant, and our users might question whether the UMI network could face a similar challenge? We'd like to assure you it could not. The UMI network is by default protected against these problems — it cannot have “traffic jams”, fees or financial pyramids. But first things first. How has the Ethereum network ground to a halt? In its report dated August 4, Arcane Research that provides analysis within the field of cryptocurrency stated that over the previous week the daily size of transaction fees in the Ethereum network has surged up to a record high for over two and a half years. On August 3, the median value #%D0%9F%D1%80%D0%B8%D0%BC%D0%B5%D1%80_%D0%B8%D1%81%D0%BF%D0%BE%D0%BB%D1%8C%D0%B7%D0%BE%D0%B2%D0%B0%D0%BD%D0%B8%D1%8F)of the fee amounted to $0.82, with the overall amount of transaction fees totaling $2 mln. However, it only signaled the start of real problems. Over the next week, fees continued to grow and by August 11 the median fee value almost doubled equaling $1.57. Larry Cermak, an expert at a big analytical and news-making crypto portal The Block, wrote in his August 15 tweet that over a week the total amount of transaction fees in the Ethereum network totaled $34.5 mln, having surpassed its historical high. Meanwhile, in the Bitcoin network that is seen as too expensive the fees were almost four times lower at $9 mln. The total fee amount paid by cryptocurrency users over a week:
Ethereum — $34.5 mln;
Bitcoin — $9 mln;
Monero — $2,240;
Tezos — $1,876;
Cardano — $1,615;
XRP — $1,138;
BSV — $1,102;
Stellar — $1,059;
Bitcoin Cash — $1,027;
UMI — $0. Let's talk about it a little later.
https://preview.redd.it/z9azd9v6alj51.png?width=1600&format=png&auto=webp&s=25c365d6e14665ecda4a2b8d19b2fc57dd5cde1e Historical Growth Chart for Ethereum Fees.Source The existing situation shows that Ethereum is actually not as fast and profitable as commonly cited. Additionally, this could happen to almost any cryptocurrency except UMI that charges no fees whatsoever. We will tell you why. Why have these problems emerged? There is nothing unoriginal: the Ethereum network simply can't handle an increased load. Arcane Research analysts consider that a principal cause of this situation is the constantly increasing number of the DeFi ecosystem projects built on the Ethereum blockchain. Their number is growing all the time which causes the overload of the network. As of August 12, the total amount of funds in DeFi applications reached $4.3 billion which is 19.5% higher than that in the past week. At the time of writing this article, the amount surged to $6.21 billion. You can see the current data here. What is the most unpleasant about DeFi protocols is that a lot of them are scam projects. Which is not the worst part though. There is also another factor that significantly slows down the Ethereum network. There are a lot of pyramid-like projects that are built on the EOS platform and use smart contracts. One of them is SmartWay Forsage, which regularly overloads the network with a large number of transactions, causes traffic jams, and, consequently, leads to increased fees (keep in mind that Ethereum miners choose transactions with a higher commission). Vitalik Buterin, the co-founder of Ethereum, revealed his disapproval of the SmartWay Forsage methodology and asked them to "leave and not pollute Ethereum ecology in the future". However, the project is slow to do this — it continues to deceive users. This is only the tip of the iceberg of scam projects which abounds on the EOS network –– they continually emerge, work for a while, then go down as scams and are replaced with new ones. This never-ending stream of "investment projects" based on the Ponzi scheme overloads the system. This is the reason why Adam Back, a pioneer of the crypto industry and founder of the technology company Blockstream, equated Ethereum with such infamous projects as Onecoin and Bitconnect. Adam Back's solid dig at Ethereum became the subject of much debate among crypto enthusiasts. Of course, it all doesn't mean that Ethereum is a bad cryptocurrency. On the contrary, it has a lot of advantages over other coins. But all that has happened exposes Ethereum's faults which must be eliminated. The problem is that they may not be fixable. It is far from certain that the developers will be able to get rid of all the defects as the system has huge scalability problems. The crypto community has to admit that Ethereum, like other first-generation cryptocurrencies, has issues with capacity, fees, and scalability and is gradually becoming obsolete. 2020 is the time for young innovative cryptocurrencies such as UMI. UMI is the flagship of new-generation cryptocurrencies. In real fact, any cryptocurrency could face it. Each cryptocurrency charges fees which typically surge when the network is overloaded or the price is going up. Everyone will remember 2017 when in line with price growth and the network's overload Bitcoin transaction fee reached a high of around $40. But when it comes to UMI, it works the other way round. The UMI network's advantages are high capacity, no fees, and scaling possibilities. It uses the best and fastest crypto industry solutions and excludes all inefficient methods by default. Smart optimization in combination with the Proof-of-Authority technology operating on the master node basis enables almost instant payments. At the stage of network testing, an incredibly high capacity was achieved:
up to 4,369 transactions per second;
up to 262,140 transactions per minute;
up to 15,728,400 transactions per hour;
up to 377,481,600 transactions per day.
Ethereum processes about 20 transactions per second. It means that the UMI network can process transactions that Ethereum processes over a year in 1 to 5 days — and with no fees. https://preview.redd.it/rwohnov3alj51.png?width=1125&format=png&auto=webp&s=4329b75c0bd8b7a22276b529f5ca433d17a0874f The UMI network can process transactions that Ethereum processes over a year in a few days and with no fees.More details What is more important is that less than 0.001% of the network's overall potential is used now. The UMI network has a lot of reserve capacity and can handle hundreds of thousands of times heavier load. Moreover, with scaling possibilities, UMI can keep up with the times. The UMI code ensures the safe introduction of any upgrades — the network can be easily modified and scaled with cutting edge technology solutions. In other words, traffic jams will never pose a problem for us. UMI will instantly process all transactions, with no fees. Always. https://preview.redd.it/t0068th0alj51.png?width=544&format=png&auto=webp&s=019f46ec8c093480c4638cf098312a5a146134a8 A real-time speedometer displays the number of transactions processed by the UMI network per second.Link Additionally, unlike Ethereum and other cryptocurrencies, the UMI's staking smart contract prevents possibilities of any pyramid schemes, meaning eliminates their negative influence. Our staking is completely safe and secured against scammers. Read more about this in our article. Any UMI staking structure could work forever. In other words, you can multiply your coins at a rate of up to 40% per month for an indefinitely long period of time. UMI doesn't inherit the disadvantages of the first-generation cryptocurrencies. This is an innovative, carefully designed network based on state-of-the-art technologies. UMI is an ambitious step toward the future. And we're making it together right now! Sincerely yours, UMI team
Bitcoin is the most censorship resistant money in the world.
You don't have to buy a “whole” bitcoin so don't freak out if you look at the price. You can buy a piece of one no problem.
The Dallas Mavericks accept Bitcoin on their website. You don't trust Mark Cuban. He's the best shark.
Bitcoin is the best performing asset of the last decade (better than S&P500).
Diversify your current portfolio.
It's not illegal in the USA.
You holding just one satoshi slightly limits the supply and can rise the price for everyone else.
[In late 2019] hash rate is the highest it has ever been
Suicide insurance; if Bitcoin rises in price there is no worse feeling than regret.
Some of the smartest people in computer science and cryptography are working on it. Trust nerds.
Look at the all time historical chart. No technical analysis just tell me what you think when you look at it.
Money is a belief system... and I want to believe.
Transparent ledger, no funny business going on it's easy to audit.
Elon Musk appears to be a fan. How's that for an appeal to authority
There is a fixed limit in the number of bitcoins that will exist. 21 million bitcoin, 7 billion people on earth. Do the math.
There are so many examples of governments inflating their currency to the point where it becomes unusable. Read the wikipedia page for Venezuela or Zimbabwe.
Altcoins make sacrifices in either security or centralization. There are altcoins out there that claim to be innovating but just check the scoreboard nothing has flipped Bitcoin in market value or even gotten close.
With technology developing at a rate faster than law, governments and for-profit businesses have the ability to monitor our purchases, location, our habits, and all of this has happened without consent. People made jokes and conspiracy theory, but sometimes conspiracy is real. Most people are good, but there is absolutely evil out there. There are absolutely evil people in positions of power. There are absolutely evil people that work together in positions of power. Does anyone actually believe that Jeffrey Epstein committed suicide. Go read about Leslie Wexner. Go read the cypherpunk manifesto.
The upcoming halvening in 2020 will reduce the number of Bitcoin created in each block, making them more scarce, and if history repeats more valuable.
Bitcoin has lower fees than traditional banking.
Gold has the advantage of being a physical thing. But unlike gold you know Bitcoin is not forged, or mixed with another metal, and you can easily break it into tiny pieces and send it over the internet to someone.
Bitcoin could spark new interests maybe you start to read more into economics, computer science, or Brock Pierce.
Bitcoin has survived with no leader, marketing team, public relations, or legal team.
Because Wired magazine said Bitcoin was dead at $2, Forbes said it was dead at $15, NY Times at $208, and CNN at $333.
Just do a cost benefit analysis. What happens if Bitcoin fails and it goes to zero vs. what happens if it succeeds, and becomes world money.
Bitcoin encourages long term thinking, planning, saving. Due to inflation we are punished by holding on to cash. Look up the statistics on the average savings account while we are bombarded with consumerist bullshit like Funko pop heads, Loot crate subscription services, and new syrup flavors for coffee. Currently we are encouraged to spend now, seek immediate gratification, and ignore what we are becoming as Amazon picks out our clothes and toothpaste ships it to the house and we sit and watch streaming services where content is pushed to us and I'm supposed to buy that this garbage is actually “trending”. Our lives have become so comfortable that idiots spend $60 to escape a room and have someone take your picture when you get out. What would our ancestors think.
Maybe you're a day trader looking to use a trading bot in an unregulated market.
Bitcoin has 7 letters in it. Lucky number 7.....
Bitcoin promises to bank the unbanked, and provide services to those not otherwise “qualified” to open a bank account.
It's just cool, don't you want to seem smart to all your friends.
The origin story is so nuts there's going to be a movie or several movies about the early days of Bitcoin. Satoshi Nakamoto remains anonymous to this day. Imagine if the inventor of the cell phone was anonymous.
If you have money to burn, don't buy soda, weed, or some girls private snapchat it's a dead end put it towards Bitcoin and give it to your child in the future.
To avoid getting ripped off by foreign exchange fees just because you were born one place and your friends were born in another place.
Can't live off the grid in your log cabin and still use Mastercard. Bitcoin is one piece of opting out.
If one country adopts BTC as the national currency, it doesn't take much thought to realise that others will follow.
Join a welcoming and unique community. Everyone is super nice because they want your money.
You can stick it to the baby boomers.
You can stick it to the vegans.
You can stick it Roger Ver.
Maybe your IQ is 70 and you'll do whatever CNBC Fast Money recommends.
Maybe a hacker infects your computer, records you doing that thing, and threatens to release the tape if you do not pay them 1.5 Bitcoin.
You're a risk taker looking for some risky investment.
Aliens attack like Independence Day, blow up major cities in major countries, your money is still safe with Bitcoin. As long as there is a some guy, some person, living on an island with a copy of the ledger out there on your'e good. We're all good.
Many proposals to scale the number of transactions, may the best plan win.
One day you might have to use BTC to pay taxes, buy food, and charge your Tesla.
You want to support a political group and remain private.
You can trust math more than you can trust people to set an emission rate.
Government don't know how much you have.
The first response to Bitcoin being published by Hal Finney stated that Bitcoin was positioned to reach million dollar valuation. Hal was the first bull and passed away in 2014, missing a lot #doitforHal.
Baddies can't freeze your money if they mad at you.
The Big Bang Theory mentioned it, maybe you want to be like Sheldon the bazinga guy.
Be contrarian. In a world where everyone zigs it's sometimes good to zag.
Don't have any hobbies, and you just need a reason to get up in the morning.
Enjoy learning? Bitcoin is a topic where there is so much to learn, and so much development, that it really becomes a never ending journey. For someone who likes learning, it's more productive than speedrunning a video game.
Yolo. You only live once. This isn't a dress rehearsal, if there's something your kind of interested in pursue it. That's true for anything not just Bitcoin. But if you're reading this I'm assuming you're interested.
Bitcoin is not a ponzi scheme. The difference is Bitcoin does not need new people buying in to work, blocks being added will continue even if the community stopped growing.
With religion on the decline maybe you want to join a cult. Crypto twitter is a great echo chamber to meet like minded people.
Satoshi Nakamoto found a way to distribute a global currency in a fair way with the ability to adjust the mining difficulty as we go, it's really incredible. You still need computers and electricity to mine new bitcoin today but it's an extremely fair way for people to earn. There was no premine of Bitcoin. Everyone who has Bitcoin either bought it at what the market said, or they earned it.
No CEO in charge of Bitcoin to make bad decisions or a board of directors that can make changes. The users, an ever growing number, are in charge.
Bitcoin has no days off, it has no workers in charge who can get sick or take a holiday.
Bitcoin has survived 10 years (and more). While there will always be dangers, I'd argue that those first few years it was most vulnerable to fail.
Have some trust in the cypherpunks. Anyone who held and didn't sell bitcoin as it went from pennies to five figures is not looking to get rich. They want to change the world.
Potential president Tulsi Gabbard disclosed owning some.
Digital money is the future, anyone who has tried Venmo can see that. Well Bitcoin is a digitally native asset.
Refugees can use Bitcoin to store their wealth as they flee a failing country.
Bitcoin is an open source project. Anthony Pompliano likes to call it a virus but I like how the author of the Bitcoin Standard describes it. Bitcoin is like a song. As long as one person remembers it you can't destroy a song.
Triple entry accounting. When humans first started recording who owes who what we had single-entry accounting. The king's little brother would keep everything written down, but we had to really trust this guy because he could simply erase a line and that money would be gone. When double-entry accounting started to spread 500 years ago it brought with it massive innovation. Businesses could now form relationships across the ocean as they each kept a record. We did not have innovation again until Satoshi's Bitcoin, where blockchain can be used as the neutral third party to keep record. It might not sound important but blockchain allows us to agree upon an objective reality.
Bitcoin is non-political.
Bitcoin is easy to accept. I mean kind of. It's certainly easier than setting up a bank account.
A sandwich used to cost 10 cents in America, I walk into Subway and they don't even have $5 foot longs anymore. Inflation man..
It's a peaceful protest.
Critics say that mining wastes electricity, but if Bitcoin adoption continues the world will actually be incentivized to produce more renewable energy. There are so many waterfalls and sources of energy in the middle of nowhere right now. People might not see a reason to build a power plant over there now, but in the future it can make business sense. Take that waterfall mine bitcoin, and sell them to the people who can't mine. It allows for a business to sell their energy anywhere.
Get into debates around Bitcoin, build those critical thinking skills.
“Predicting rain doesn't count, building arks does”
“The best time to plant a tree was 20 years ago, the second best time is now.”
"I never considered for one second having anything to do with it. I detested it the moment it was raised. It’s just disgusting. Bitcoin is noxious poison.”
The immaculate conception. No cryptocurrency can have a start the grassroots way Bitcoin did, it's just impossible given how the space has changed.
There are more than 1000x more U.S. dollars today than there were a hundred years ago.
Bitcoin is the largest transfer of wealth this decade from the least curious to the curious.
The concept of the Star Wars Cantina, Galt's Gulch, or young Beat Generation kids sitting in a basement smoking cigarettes and questioning the world can only exist if money remains fungible.
You can send money to your Dad even if he lives in a country run by bad boys.
Memorize your key, and walk around the world carrying your money in your head.
The Federal Reserve is objectively way too powerful.
John Mcafe promised that if bitcoins were not valued at 1 million dollars by the end of 2020 he would eat his own penis on national television. It will be a sad day if we don't hit that 1 million.
The Apple credit card.
If we ever get artificial intelligence it'll be able to interact with Bitcoin.
Katy Perry is aware of crypto so if by some chance you run into her, you get one chance to strike up conversation, so here's your chance to shine. You don't ask for a picture, you don't say she's pretty, or name your favorite song. Take your shot and ask about what type of cold storage she uses for her bitcoin.
Many people are afraid of a world currency because it's associated with a centralized world power taking control. Bitcoin allows for neutral world money.
First, let’s look at some of the issues facing Proof-of-Work (PoW) consensus that led to the development of PoS.
Excessive energy consumption — In 2017, many concerns were raised over the amount of electricity used by the bitcoin network (Largest PoW blockchain). Since then the energy consumption has increased by over 400%, to the point where 1 single transaction on this network has the same carbon footprint of 736,722 Visa transactions or consumes the same amount of electricity as over 20 U.S. households.
Varying Electricity Costs — The profit of any miner on the network is tied to two costs, the initial startup cost to obtain the hardware and infrastructure, and more critically, the running cost of said equipment in relation to electricity usage. Electricity costs can vary from fractions of a cent per kWh to over 50 cents (USD) and in some cases it is free. When a user may only be earning $0.40 USD per hour then this will clearly rule out certain demographics based purely on electricity costs, reducing the potential for complete decentralization.
Reduced decentralization — Due to the high cost of the mining equipment, those with large financial bases setup mining farms, either for others to rent out individual miners or entirely for personal gains. This results in large demographic hotspots on the network reducing the decentralized aspect to a point where it no longer accomplishes this aspect.
Conflicted interests — The requirements of running miners on the network are purely based on having possession of the hardware, electricity and internet connection. There are no limits to the amount a miner can earn, nor do they need to hold any stake in the network, and thus there is very little incentive for them to vote on upgrades that may benefit the network but reduce their rewards.
I want to take this moment to mention a potential benefit to PoW that I have not seen anyone mention previously. It is a very loose argument so don’t take this to heart too strongly. Consistent Fiat Injection — The majority of miners will be paying for their electricity in fiat currency. At a conservative rate of $0.1 USD per kWh, the network currently uses 73.12 TWh per year. This equates to an average daily cost of over $20 million USD. This means every day around $20 million of fiat currency is effectively being injected into the bitcoin network. Although this concept is somewhat flawed in the sense that the same amount of bitcoin will be released each day regardless of how much is spent on electricity, I’m looking at this from the eyes of the miners, they are reducing their fiat bags and increasing their bitcoin bags. This change of bags is the essence of this point which will inevitably encourage crypto spending. If the bitcoin bags were increased but fiat bags did not decrease, then there would be less incentive to spend the bitcoin, as would see in a staking ecosystem. https://preview.redd.it/8dtqt6e204c41.png?width=631&format=png&auto=webp&s=065aedde87b55f0768968307e59e62a35eac949d
Different approaches have been taken to tackle different issues the PoS protocol faces. Will Little has an excellent article explaining this and more in PoS, but let me take an excerpt from his piece to go through them:
Coin-age selection — Blockchains like Peercoin (the first PoS chain), start out with PoW to distribute the coins, use coin age to help prevent monopolization and 51% attacks (by setting a time range when the probability of being selected as a node is greatest), and implement checkpoints initially to prevent NoS problems.
Randomized block selection — Chains like NXT and Blackcoin also use checkpoints, but believe that coin-age discourages staking. After an initial distribution period (either via PoW or otherwise), these chains use algorithms to randomly select nodes that can create blocks.
Ethereum’s Casper protocol(s) — Being already widely distributed, Ethereum doesn’t have to worry about the initial distribution problem when/if it switches to PoS. Casper takes a more Byzantine Fault Tolerant (BFT) approach and will punish nodes by taking away (“slashing”) their stake if they do devious things. In addition, consensus is formed by a multi-round process where every randomly assigned node votes for a specific block during a round.
Delegated Proof-of-Stake (DPoS) — Invented by Dan Larimer and first used in Bitshares (and then in [aelf,] Steem, EOS, and many others), DPoS tackles potential PoS problems by having the community “elect” delegates that will run nodes to create and validate blocks. Bad behavior is then punished by the community simply out-voting the delegated nodes.
Delegated Byzantine Fault Tolerance (DBFT) — Similar to DPoS, the NEO community votes for (delegates) nodes, but instead of each node producing blocks and agreeing on consensus, only 2 out of 3 nodes need to agree on what goes in every block (acting more like bookkeepers than validators).
Masternodes — First introduced by DASH, a masternode PoS system requires nodes to stake a minimum threshold of coins in order to qualify as a node. Often this comes with requirements to provide “service” to a network in the form of governance, special payment protocols, etc…
Proof of Importance (POI) — NEM takes a slightly different approach by granting an “importance calculation” to masternodes staking at least 10,000 XEM. This POI system then rewards active nodes that act in a positive way over time to impact the community.
In order to understand how one can earn money from these networks, I’ll break them down into 3 categories: Simple staking, Running nodes, and Voting. Simple Staking - This is the simplest of the 3 methods and requires almost no action by the user. Certain networks will reward users by simply holding tokens in a specified wallet. These rewards are generally minimal but are the easiest way to earn. Running a node - This method provides the greatest rewards but also requires the greatest action by the user and most likely will require ongoing maintenance. Generally speaking, networks will require nodes to stake a certain amount of tokens often amounting to thousands of dollars. In DPoS systems, these nodes must be voted in by other users on the network and must continue to provide confidence to their supporters. Some companies will setup nodes and allow users to participate by contributing to the minimum staking amount, with a similar concept to PoW mining pools. Voting - This mechanism works hand in hand with running nodes in relation to DPoS networks. Users are encouraged to vote for their preferred nodes by staking tokens as votes. Each vote will unlock a small amount of rewards for each voter, the nodes are normally the ones to provide these rewards as a portion of their own reward for running a node.
Aelf’s DPoS system
The aelf consensus protocol utilizes a form of DPoS. There are two versions of nodes on the network, active nodes & backup nodes (official names yet to be announced). Active nodes run the network and produce the blocks, while the backup nodes complete minor tasks and are on standby should any active nodes go offline or act maliciously. These nodes are selected based upon their number of votes received. Initially the top 17 nodes will be selected as active nodes, while the next 100 will stand as the backup ones, each voting period each node may change position should they receive more or less votes than the previous period. In order to be considered as a node, one must stake a minimum amount of ELF tokens (yet to be announced). https://preview.redd.it/47d3wqe604c41.png?width=618&format=png&auto=webp&s=062a6aa6186b826d400a0015d4c91fd1a4ed0b65 In order to participate as a voter, there is no minimum amount of tokens to be staked. When one stakes, their tokens will be locked for a designated amount of time, selected by the voter from the preset periods. If users pull their tokens out before this locked period has expired no rewards are received, but if they leave them locked for the entire time frame they will receive the set reward, and the tokens will be automatically rolled over into the next locked period. As a result, should a voter decide, once their votes are cast, they can continue to receive rewards without any further action needed. Many projects have tackled with node rewards in order to make them fair, well incentivized but sustainable for everyone involved. Aelf has come up with a reward structure based on multiple variables with a basic income guaranteed for every node. Variables may include the number of re-elections, number of votes received, or other elements. As the system matures, the number of active nodes will be increased, resulting in a more diverse and secure network. Staking as a solution is a win-win-win for network creators, users and investors. It is a much more resource efficient and scalable protocol to secure blockchain networks while reducing the entry point for users to earn from the system.
Edit: Links here suck. I put quotes around them so you can spot them out. I did a lot of research for this post. Edit #2: Put square brackets around links. Now they should be clearly visible. TLDR: The ills Vitalik talks about are primarily about psychology. New scalable solutions can fix it partially, but we have to deal with people first. Before I dig deep into this post, I want to let you know what it's about. Yes, you'll see some emotional content. You'll see ideological ideas. However, this post ain't about ideologies. It's about something I deem as a real problem. Its about the corrupt mindsets that we have as community since the prices spiked early 2017. To advance forward, I want to analyze them, distill the problem into the most basic form possible, then point people into a direction I deem would be good for the cryptocurrency community. The format will go like this:
My history with Crypto/Blockchain. Why I'm here in the first place.
My analysis of the problem Vitalik talked about
My perceived solution to the problem.
The steps I've already taken towards the problem
Why I'm Here
Time travel back into pre-2017 and you'll see that the cryptocurrency/blockchain community was filled with hopeful young nerds that dreamed of making the world into a better place; A much more open, peaceful and freer place. I was going through a hard time with my life 2015-16 -- my twin died, I was on the verge of going homeless with nobody else to rely on, had to go unbanked in America, almost entirely dropped out of college and my first contracting business failed. I couldn't get my life right at all, and I didn't see any hope. The future was bleak to me. However, I found people here in the blockchain community actually trying their hardest to do things that would solve the world's problems, [even if that was mainly reporting the news for people and addressing people live in chat to create a community]. That drew me in well before the price of cryptocurrencies spiked; almost in a manic like way -- I read about it constantly, practiced solidity, talked to everyone I could that would have the capacity to understand cryptocurrencies and more. Even now, when I attend conferences, I meet good-hearted, sleep deprived developers, marketers, business owners and specialist that aim to solve the world's greatest problems in the best ways they can. Many are in small corners of the world helping each other out. Inside of this community I found hope and meaning. My depression lifted, my anxiety went away, my life got back on track, and that hope propels me though the field years since I joined this movement. I'm now more confident than ever knowing that collectively this industry will possibly be the epicenter of change for not only money, but for everything. We'll [eliminate poverty], [solve global warming], [prevent hyper-inflation like we've seen with Venezuela], [improve supply chains] around the world, improve healthcare, and solve the [social ills of the world like corruption]. That's just the tip of the iceberg. I believe intensely in the vision set for crypto. The community is filled with brilliant people that will make a difference. That excites me. I'm for freedom, boosting happiness of individuals, increasing health, making life more fun and less stressful for the common person, open discussions to progress everyone forward, and a more livable planet. I'm thinking of all people and I'm not against any group. However, I'm not for FUD, greed while abusing others, bigotry, trolling, hatred, racism, evil acts and stealing. Those are against my values. I think that's against the values of many of the cryptocurrency community's foundational members.
A problem we can't ignore
In 2017, as the prices exploded and the returns grew in for the average person, I noticed the community was starting to get tainted. People were no longer focusing on technology, freedom and community. No longer focusing on creating better lives for people in their communities around the world. We were missing the altruism I originally felt in the community. [If I were in Vitalik shoes, where I'd invest 80-100 hours a week into a vision, I'd feel extreme frustration too]. People are instead focusing on [needless politics], searching for the next big price pump, the next big score. Instead of people figuring out about how to use blockchain and crypto for making people's lives better, I've heard people say HODL and scam more than I ever have in the history of the community. This saddens me and frustrates me at the same time. On one end I see great potential and beauty in the community, and at the same time I see the beast within us come out that hasn't been even thought about deeply enough to be accurately tamed. Trolls, profiteers running away with ICO money, market manipulators and scam artist ruining the reputation and progress of the community. While I could complain about what I see, I decided to instead dissect it in this post. I wanted to know what's causing this on a larger scale. See, by training I'm a psychologist, social scientist and computer scientist. I've been transitioning over to economics and data science because I feel it's a solid cornerstone of the industry. My perspective will be coming from those first. Allow me to explain. If our community is going to "grow up and actually solve problems", the corruption of minds because of money needs to be fully explored first. Only by understanding the problem thoroughly can we solve it. Explicitly stating the problem: Its the extreme predatory, egotistical, harsh behavior we as a community have adopted.
The Psychology And Behavioral Science Of Finance
Let's start with the biggest premise. Money is an idea. It exist because people communicate, produce, share, trade, have scarcity for goods and have needs. Money is an ideological binding agent for people.
It helps us exchange two irrelevant things with a medium
Helps us do more things in knowing the value we hold will help us improve productivity in the future
Helps us determine value in an abstract way
Helps us navigate the world.
Money is about as social and psychological as anything in the world can get outside of direct human interactions. Coincidentally, this psychological/social aspect isn't talked about very much inside of the cryptocurrency landscape. However, it's the foundation of everything we have here today. If we can't talk about how money is connected to the mind, we can't solve the maturity problem Vitalik was talking about. My intent is to explore that deeply so a firm direction can be at least set.
Money and the Mind
Our mind is complex. Beyond the usual processing of information people have (our 11 senses), we people have 2 primary centers for decision making and control. Limbic System The first one is the limbic system. It has gone by the nickname of "the lizard brain" in recent history. It's responsible for storing memories, handling stress responses, attention and emotional processing. In a sense, it controls all of intuition and fast heuristic choices you make. https://preview.redd.it/xvpw95ate8d11.png?width=551&format=png&auto=webp&s=eeed7e25448614af346091f6ededac41be9df5b5 Prefrontal Cortex The second system is known as the prefrontal cortex. It controls higher order functions such as planning, reasoning, serial processing and how we think about emotions. https://preview.redd.it/if5p4n90f8d11.png?width=512&format=png&auto=webp&s=92ef641c4f583d38239cdf380d443b2b7557767e These two centers are not mutually exclusive. You brain has circuits to make decisions about everything. The two parts talk to each other to do so. Any dysfunction in behavior is usually due to a lack of communication between these two decision centers, rather than a lack of communication between the centers of your brain. This is heavily seen in mental disorders. According to the book [Upward Spiral ], a book that looks at mental disorders from a neuroscientific view and explains how to reverse the ill effects of them, here's now some disorders can play out inside of our heads:
Depression -- A poor link between the Anterior Cingular Cortex and PFC. It means you will notice more negative and therefore act on negative impulses and thoughts.
Dissociation -- A poor link between the Anterior Cingular Cortex and Anterior Insular makes it so your attention can't be accurately directed towards yourself. There will likely be a poor understanding of pain and out of body experiences. It can be reversed with meditation and yoga.
How Crypto Fits
This should hopefully be the first question we have. It's easy to only pay attention to the ill behaviors of the more recent cryptocurrency industry and say "shame on you!". But what if people had a hard time actually controlling themselves? Inside of the book Upward Spiral, Alex Korb, the neuroscientist that wrote it explored that people with depression and anxiety had a hard time not being depressed and anxious by choice. Because the depressed person's circuitry is skewed, they act on it subconsciously in a forever perpetuating loop. In fact, the only way to reverse depression is to reverse the circuitry that holds it together. Part of what makes anti-depressants more effective is that the serotonin improves sleep and makes a person's brain more susceptible to positive changes. That would be doing things like doing gratitude journals everyday to make your anterior cingular cortices notice more positive events, being around people who love you to boost your serotonin and cut down stress hormones, or getting a little exercise everyday to send oxygen to your brain. So that leads us back to the original question. What if people didn't have a fully conscious control over how they acted about money and crypto? I did some research between many different articles and found that this was absolutely the case. People don't have much control. They tend to be on extremes of some end all the time. How Does Finance Play With The Brain? Of the many ways, there's one key way it does. Money plays with people through the the hypothalamus stress response. It charges people into fight or flight mode, and can literally destabilize the homeostatic systems. This can do all sorts of things. It can make the anterior cingulate weaker in strength (known to help us control emotions and learn), and therefore reduce the power of our prefrontal cortex. When people are stressed about finance, or even excited about it, it will put people into extreme states.[Meaning the lizard brain takes the show].That can make people easily make haphazard decisions. Of course, there's other things that happen with the introduction of more money, but that IS the most intense thing to take note of. If we want to solve the problem of relinquishing poor community, like Vitalik continuously makes comments about, we need to look at the problem in this way. If we don't see it this way, we're screwed. The problem wont be solved, companies like Microsoft will continuously kill off their implementations due to price fluctuations, the cryptocurrency community wont pass go and wont make a huge impact. Instead we'll blame, shout at each other, and create another Wall Street 2.0. In fact, we'll become worse than them. We will have more leverage over resources than any other group in history and the corruption will be strong. Money affects decisions, period.
Solving the Cultural problem
I'm nervous. As I type this response, I know that by revealing my idea to the public I could be condemned by the community for "shilling", and even worse, somebody else can pick it up and run with it. That is the most nerve wreaking thing I could ever consider. Months of 80 hour weeks and extreme sacrifices to bring out a vision because I didn't see much of a choice. If we don't remove what limits us soon as a community we will get engulfed by outsiders that don't want to create virtuous society. My solution: Algorithmic Trading Now, before you tell me that the market is entirely unpredictable, I'd like to be one to say that the notion is false. We see everywhere that people using AI and more complex forms of math to be able to make reasonable gains in the financial world. Companies like Bridgewater predicted the financial crash of 2008 with reasonable accuracy, and other people like [mathematicians are able to do the same]. Realistically, the market has some degree of predictability. However, much of the access to that is limited. Even beyond that, the financial industry is one of the only social fields that is highly transparent to many actors, through the news and price information, and reflects ideas and beliefs through the markets. If we can better analyze markets, we could discover all sorts of social phenomenon that previously made no sense. With algorithmic trading we're heavily incentivized to learn, as that will produce a direct outcome of earning money. We could better solve the social ills of the world quickly and efficiently over time. On top of that, we will be able to stabilize the market and protect against bad agents if algorithmic trading becomes coordinated and effective enough throughout the industry. Again, How Does it Fit With Cryptocurrency? Bitconnect could answer how automated trading fits. Before I continue, let me be clear. People lost their money through that scam. It was awful. I know some people that had a lot of money taken from them. Many of them are now fearful of cryptocurrency. However, I don't think Bitconnect was 100% wrong with their idea. Yes they were a ponzi scheme, yet realistically many of the people I met that fell for it felt as though the crypto markets were already complex. They were losing money while HODLing, making rash decisions and trading. Bitcoin and the entire industry carries too much of a cognitive burden for a person to keep track of beyond their normal everyday life. News, prices, scams, hacks and technical information. That's a lot to keep track of if you have 3-4 part-time jobs as a single mom or dad while raising 2 kids. That's a lot to keep track of if you're old and don't have the technical capacity to read into the crypto markets all day everyday. Therefore, even while people were making less money from investing into Bitconnect, on paper it required less thinking and they were still getting benefits that they cared about. They could share with friends because they thought that there money would not shrink in value heavily due to a random market crash. As a consumer, it isn't wrong to believe that you can be apart of something big without having to work an extra 5 hours everyday reading blogs and watching youtube videos just to keep up with the happenings of the industry. It doesn't require us to be judging people for falling into a ponzi scheme. It requires a bit of caring and empathy to see people's main intentions. They want a better life compared to the one that has been crushing them with student debt and poor job prospects. People want to have a better life without being as stressed beyond belief like they currently are. And for the everyday trader, giving them the incentive they seek, while giving them the capacity to do some research for themselves is important. Choice matters a lot for some people.
Steps I've taken towards this:
Here comes the shill part you've been waiting for. Over the last year I've been building an application that would help us solve the problems we face today as a community. It I'll reduce the stress response of people worrying more about money, with technology like it getting standardized throughout the entire industry, it'll make things a lot more stable. It's an automated AI-based trading platform that aims to make reduce the cognitive load and worry about holding your funds in crypto. The aim of it is to dynamically trade for people while also letting them have 100% control over their funds. For now, that's by using exchange API keys. Though in the future, that can be through decentralized exchanges, meaning no middle man. My product's name: It's [Funguana.com]. [Internally meaning the interconnection of all Dhrama in the Huayan Buddhist religion]. I've already received controversial reviews, and feel crazy for putting it back out there. However, I'm now confident I can follow through, and maybe by explaining my reasoning behind why I built it the community will respond differently this time. To make it more trust-able, 4 months after public release, if my resources allow me to, I plan to open source the infrastructure code so people can implement their own platform within a matter of weeks, then systemically open many of the algorithms so they can appropriate powerful algorithms together over time (many not based on AI). I have to be strategic though. If I open it too soon, too many bad actors can enter the space and cause havoc early, without much chance to keep them in check. Edit: I made changes to the page to make the links more obvious. Now they're in bold and italic Edit 2: Adding quotes to make links more obvious again.
Bitconnect (BCC) Is A Zombie Shitcoin, Since It Still Exists After Epic USD 2.7 Billion Collapse
https://preview.redd.it/g0ky0k0lhb321.png?width=540&format=png&auto=webp&s=bc5c3b2e431e9511fb1dca1f9779b284890c2bff http://genesisblocknews.com/bitconnect-bcc-is-a-zombie-shitcoin-since-it-still-exists-after-epic-usd-2-7-billion-collapse/ After intense scientific research, the experts at GenesisBlockNews have discovered a new type of shitcoin: the zombie shitcoin. The definition of a zombie shitcoin is a shitcoin that already totally died, but somehow continues to have trading activity and a value. Bitconnect (BCC) is the first identified zombie shitcoin. Bitconnect was a typical ponzi scheme where people thought they were getting profits by holding its native token, BCC, but really they were just being paid with the money from new investors. Once the cryptocurrency market began to decline in December 2017 and January 2018, and new investments dried up, Bitconnect imploded like the infamous Chernobyl nuclear reactor. The market cap of BCC declined from USD 2.77 billion to USD 20 million within a month. It is important to note that USD 2.77 billion would place Bitconnect in #4 today, ahead of Stellar, Bitcoin Cash, EOS, Litecoin, Tether, etc. The fact that the native cryptocurrency of a ponzi scheme was able to gain such a high market cap is illustrative of how naive, and honestly outright stupid, the crypto space got. People were dumping truck loads of money into the pockets of the Bitconnect scammers, since they thought they could get quick profits, instead of doing research and investing in cryptocurrencies that have real potential. This same story has been repeated for thousands of ICO scams, but perhaps Bitconnect is the most obvious example. Currently BCC has a price of USD 0.68 and a market cap of USD 7.4 million. Not only that, but CoinMarketCap indicates that BCC has daily volume of USD 10,000 on average, and there was a 100+% rally in August 2018. This firmly indicates that BCC is indeed a zombie shitcoin. People are still paying actual money for a cryptocurrency which totally died an entire year ago. The only advice we have, after watching zombie movies, is to shoot BCC straight in the head. Bitconnect already died in the crypto equivalent of a nuclear meltdown, and now it walks the Earth as an undead cryptocurrency.
I was talking with a friend who isn't in the space and was just flippantly saying Bitcoin was just a Ponzi scheme. I looked up Wikipedia to refute him with the definition and it hit me that BTC in its current form IS a Ponzi scheme by definition. "A Ponzi scheme is a fraudulent investment operation where the operator generates returns for older investors through revenue paid by new investors, rather than from legitimate business activities or profit of financial trading." (BTC doesn't actually do anything of value now) "Often, high returns encourage investors to leave their money within the scheme, so the operator does not actually have to pay very much to investors." (just HODL?) "Since the scheme requires a continual stream of investments to fund higher returns, once investment slows down, the scheme collapses as the promoter starts having problems paying the promised returns (the higher the returns, the greater the risk of the Ponzi scheme collapsing). Such liquidity crises often trigger panics, as more people start asking for their money, similar to a bank run." I've been a HODL'er since 2013 but can't defend BTC to anyone anymore. It doesn't actually DO anything now. A store of value is a terrible model IMO. You're just hoping new people put money in so it grows. There is no actual product now. I feel like the smart money got into BTC in the early days who saw the vision, now the smart money is getting out seeing the writing on the wall.
Pioneer in blockchain gaming. Currently has biggest auditory and market turnover per day. But since no new functionality has been added by developers(you could only breed, buy and sell), market is dropping prices each day. Hard to enter for newbies and earn something. On other hand has interesting science side to breed new cats. Honestly think it will be one of the longest projects, however it is hard earn there right now, HODLers very rare cats might win at the end of 2018(Gen0 cats will no appear). It is just very short description about project, more details coming soon. With current prices and price of breeding there are very little kittyfans right now
One of the most potentially best blockchain games with battle mechanic(will be working from 8th Jan but is already implemented in smart contracts) and design looks like Pokemons. Started as ponzi-like scheme, but developers turned it into amazing solution as gen0 holders which might moon just in next few weeks. Those who hadn't returned their ROI received eggs which will turn into additional gen0 mons. Moreover project leader nakasatoshi has opened weekly thread about current status and seems to be very positive and hardworking guy. Personally I'm very excited about Etheremons and waiting starting trade/lease/battle functionality. Project spend 0(ZERO) dollars on marketing and have already huge community.
Another cool projects with solid White Paper and smart contracts which will start very soon. Early adopters are already defined(1500 persons), but still project has very big potential. I'm recommending subscribe to their channels and start playing as soon as they'll start, should be very good. They have announced cooperation with Decentraland
Interesting project, will be starting very soon, now with Horses, not only siring/breeding, but competition game, where you can compete in horseracing with your own champion and win Ethers. Join now to get chance win Gen 0.
Potentially one of the hugest TCG on blockchain. They're are starting initial coin sell in couple of hours. Whitepaper looks very solid at least right now. Only one project with user agreement during buying tokens.
Don't know if it is true game, or just a gambling one, cause no rules and FAQs working on site. It seems the mechanics is as follows: you buy a fish, it stays in aquarium until some shark attacks (1 time per 24 hrs?), if your fish survives it gains additional ether in its price.
Start of project has been postponed due to developing smart contract, developers had redunf to all persons who had bought monster and didnt know about smart contract absence. Seems pretty fair. Gen0 sales will start on Jan 09
Simple collectible game, where you could buy token with your favourite celebrity (only 1 token of each celebrity exists). You're owner of token until someone decides double your price (so you'll get x2 you'd paid)
Currently only buy seeds and get flowers with certain probability: Very Common (50.9%), Common (20.5%), Uncommon (12.7%), Rare (6.4%), Very Rare(3.2%), Epic (0.8%), Legendary (0.4%), and an exceedingly exclusive Secret Tulip (0.1%)!
1st producer of digital high-end luxury vehicles on the Ethereum blockchain. Etherlambos are tokens of craftsmanship dedicated to collect the desire of people to possess unique items of value. Etherlambos can be collected, traded, and tuned. All Etherlambos come in a limited edition.
Beyond the Void is a 1v1 MOBA game with decisive features from RTS games. The gameplay is a unique mix of genres. It takes place in a universe of sci-fi and fantasy. It’s powered by blockchain as the in-game items are available to purchase only in Nexium (NXC) - the dedicated cryptocurrency. The objective is to offer a new game experience for players as they will truly own their in-game items, be able to use their cross-gaming items in feature Nexarium games and, to trade or sell them on the Beyond the Void’s shop
CryptoCelebrities - like game, at least for now. Developers promised add gaming elements and not just trading. As for now it is not recommended for newbies, as you could stuck with expensive country card
Ether Dungeon is a real ethereum blockchain based game in which players can explore the depth of dungeons, collecting & upgrading epic heroes, powerful items, challenge fierce enemies, and finally become the Dungeon Master!
ÐWorld is a game centered around owning and trading parts of the world. We call them plots. Each plot is owned by you: no one else can claim it or take it from you, unless they pay you more than you did. You can customize your plots for everyone to see.
Cryptocities - brand new blockchain game with possibility to discover new cities each 12-14 hours, and sell/rent them. Aim is to discover most valuable cities. More details could be found on site or on Discord. I like their idea and 'no rushing' cooldown before each new action. Long term project for sure
Built on Ethereum blockchain, Dragonereum is a cryptocollectible player vs. player game, allowing users to collect, breed and battle unique dragons. As for me project seems to be very promising with very cool design and idea.
Augmentors Game will be for all mobile devices when launching in Q4 2018. The game features Augmented Reality. The creatures are AR and can battle anywhere in the world. There are collectible Creature that are in limited supply as they were part of the ICO nearly a year ago. These creatures are unlike most games seen today, you can use them in real battles in real AR all over the world.
CryptoArts is a Blockchain based Virtual Gallery where players can invest into masterpieces and earn, art lovers can browse virtual gallery via mobile app in AVR. Galleries and individual artists can host exhibitions. Very ambitious and promising project. I really like and idea!
New fantasy game with RPG elements where you can battle your heroes against other players on arena or challenge on big tournament. Current prices for arena battles are high, but overall concept and design is very good
New promising and first on blockchain Football Manager. Join a team or create your own, play together with friends in the pursuit to climb the top and claim the biggest share. Train your own champions and sell them for Ether or enroll them to your own dream team!
Pandemic reborn on blockchain. Funny viruses mutation game with pyramid scheme. Create your own virus and try to infect as much as possible people. Read FAQ carefully to understand how to play properly
Etherwaifu (do not mix up with scam Ethwaifus) is fresh crafting collectible game with amazing artworks from two raising talents Jubi and Agro. Each of this fantastic artwork has thousands of unique variations, and you can craft a new one by combining traits of other artworks you own. See the magic yourself.
Arrested and convicted in California under the name of Omar Dhanani as a member of Shadowcrew, an organization trafficking stolen credit and identity information primarily using E-Gold
IMPORTANT: Omar Dhanani used the alias Voleur (french for "thief") during his time with Shadowcrew. This is one of the primary connecting threads between the Omar Dhanani and his later aliases as Patryn, owner of VFS-NETWORKS
An article in The Register describes how Omar Dahnani and 5 others plead guilty to charges laid on them in November 2014:
"The group of six pleaded guilty to one count of conspiracy to defraud in New Jersey on Thursday in exchange for the state dropping other charges pending against them, Wired reports. They were named as: Andrew Mantovani, 23, and Brandon Monchamp, 22, of Arizona; Kim Taylor, 47, and Omar Dhanani, 22, of California; Jeremy Stephens, 31, of North Carolina; and Jeremy Zielinski, 22, of Florida. In total, 12 people have now pleaded guilty to Shadowcrew-related charges."
"Shadowcrew members are expected to be sentenced between mid-February and mid-March 2006."
Specialized in processing anonymous purchases and sale of early digital currencies, particularly Liberty Reserve. (Liberty Reserve was shut down in 2013 for money laundering and facilitating identity theft, credit card theft, narcotics trafficking, and child pornography)
VFS Network was an exchange network bringing together
e-money services like Liberty Reserve and other OmaMichael projects like HD-MONEY.COM, XXX-CHANGE.COM and MIDAS GOLD.
Website now points to dns.shadowserver.org, a volunteer service often used by legal authorities to capture data from incoming traffic to the webpage (Was used by authorities after Liberty Reserve's domain was seized)
### NOTE: Voleur is mentioned as an alias by users on dreamteammoney.com, along with complaints related to MIDAS GOLD. These complaints relate a MIDAS GOLD policy of withholding client's funds depending on how many emails they sent asking about the status of their funds.
### IMPORTANT: "OWNER" of VFS-NETWORK frequently appears online under the name of Patryn, connecting the alias to Omar Patryn of MIDAS GOLD, although Patryn can be found denying any relationship whatsoever between the businesses. In the same thread below on ComplaintsBoard, Patryn posts with a VFS-NETWORK avatar while describing why he, as an administrator on a MIDAS GOLD-managed forum deleted posts of users making complaints.
Around December 2009 , reports begin to surface of payment processors closing down MIDAS GOLD accounts due to overwhelming amounts of complaints from MIDAS GOLD users not receiving their funds from MIDAS GOLD. OmaMichael himself responds in the thread
### In the same year, Liberty Reserve is investigated by Costa Rican
authorities due to questions as to their funding sources. By 2011 they are denied a business license for these reasons and forced to dissolve. Liberty Reserve continues to do business illegally by routing through 5 separate Costa Rican corporate entities.
Michael Patryn is nominated to the Bitcoin Foundation by Francis Pouliot, who states in his nomination:
"Michael Patryn has been working with digital currencies since 2002 in the capacity of financial consultant, market maker, and exchanger. As a venture capitalist, Michael has actively invested with and supported over twenty companies within the digital currency space."
### Which 20 companies? 2002 would be the year Omar Dhanani was working with Shadowcrew laundering funds using E-Gold.
A profile of Michael Patryn is published on the Lifeboat Foundation website listing him as Director of VFS SECURITIES.
Quadriga Fintech Solutions is founded by Gerald Cotton and Michael Patryn (Only Gerald Cotton is listed on the SEDAR page for the company).
I first got interested in cryptocurrencies during the last bubble in late 2013. I bought in to the hype, bought some coins for cash, started trading, made some profit, made some losses, and ended up disillusioned when the bubble had finally popped and I was in the red. I put up a few sell orders and just waited until it would either die for good or come back alive like it has done now. But what I saw then is repeating itself now, although in a slightly different shape. Back then people would create coins with new features such as proof of stake, new hashing algorithms that would be ASIC proof, some of them actually created coins that had some real life use like Monero and Darkcoin, or Dash as it's called now. But most of them were shitcoins only made for pump and dump purposes. The new craze is ethereum based coins. Everyone and their uncle are making ICOs with the new best platform for a new revolutionary pointless purpose that makes no sense. Just like the shitcoins of 2013/2014 had pointless features that sounded cool but were pure fluff to make people horny enough to lose their minds and buy in to the hype so the creator could cash out a hefty bitcoin profit, leaving the bagholders wondering what the hell just happened. It's repeating itself this time too. I see people acting in the same nutty way that they did back then. Is this coin good? What should I invest in? What's the best coin and why is it $hit€oin? When will $shit€oin reach the moon? Quick, everyone buy this €rap€oin, it's going to the moon! And so on, the trollbox is live and thriving everywhere you turn. Some are honestly asking, others are shilling, some are bots or fake accounts replying and saying they love the €oin because it has a revolutionary but pointless feature that everyone will never care about. You can also compare it to the Dot-com bubble where companies were started, venture capitalists poured their millions into ideas that sounded good on paper but no one knew how to do. But the hype was real, just look at where we are today, the internet is bigger than anyone could believe back then. I think crypto currencies are the future just like the internet turned out to be, but it's the wild wild west right now. And don't get me wrong, I'm not asking for state regulation, it's inevitable either way, but I'd rather have it like this, decentralized, unpredictable, exciting and fascinating. But just remember that those of you who are just getting in to this, you are repeating the same mistakes that I and many others did in 2013/2014. You are the new cows that the whales are milking, you are the naive ones who're trying to make a quick buck by buying shitcoins, believing in ICOs and so on. Some of you will get it right, many out of pure luck, and a select few are able to see past the noise of the scams, ponzi schemes and outright frauds. I'm not saying I'm one of them, absolutely not, I just know that the previous bubble had the same pattern, but this time more people are aware and more cash is flowing in. Don't take advice from Reddit. You can't trust anyone here. Assume that everything you read is a scam. The chance of it being legit is minuscule, I just refreshed coinmarketcap.com to copy/paste the number of listed coins, it was 837 before I refreshed and 840 after I refreshed. Do you see my point here? How many new coins are created per month? How many of the 840 listed coins are useful today? 5? 10? 20? 50? It's hard to define what useful is, but the vast majority of them are absolute trash. Don't be a sheep, don't trust what a stranger online said about a coin, don't trust blogs, websites and youtubers who talk about the next big €oin that will make you fly on your personal NASA built rocket to the moon once you've staked 50 of them for a month. But that's not to say that you shouldn't gamble, that's what we're here for, right? But don't trust their promises of some new magical properties that will revolutionize how dairy farmers trade the tons of methane that their cows produce. And yes, cows produce methane, but no, there's no coin that's trying to capitalize on that market. Yet? How about naming it ƒartcoin? I claim 10% of the premine if someone creates it. You heard it here first people. If you've made it this far, keep in mind that the smaller coins that increase in value by e.g 200% in two weeks time most likely have no significant market cap, so if you try to sell a couple of bitcoins worth of coins, you might tank the price, so smaller coins are useless for any significant sums of money. But they're perfect for gambling purposes. Just remember that they're just that, shitcoins that you should get rid of as soon as possible. And don't take my advice, make an informed decision, I might be trying to fuck you over ( ͡° ͜ʖ ͡°)
My Open Letter to Peter Schiff (followup from the debate today)
2018 Cryptocurrency Crash (Elliott Wave): Redux Crosspost: https://bitcointalk.org/index.php?topic=2711461.msg42706471#msg42706471 History —08-JAN-2018: Elliott Wave, https://redd.it/7ptsg3 —12-JAN-2018: Crypto Black Monday, https://redd.it/7pxg0d —24-JAN-2018: Dotcom vs Crypto, https://redd.it/7skzff —21-FEB-2018: Bear Market Resumes, https://redd.it/7z8u6n —28-FEB-2018: Halfway Through, https://redd.it/7umjf9 —13-MAR-2018: Fare Thee Well Ten Thousand, #10kNeverAgain: https://redd.it/842ssd —19-MAR-2018: Equinox, https://redd.it/85m5tr —03-APR-2018: April Fools’ Rally, https://redd.it/89jqye —19-APR-2018: 420 High, https://redd.it/8dbz4f —25-APR-2018: Symmetrical Triangle, https://redd.it/8ev2ki —06-MAY-2018: Ten Thousand Tease, https://redd.it/8hdhjn —29-MAY-2018: Triangle Phinance, https://redd.it/8mwx6z —10-JUN-2018: Triangle Phinance II, https://redd.it/8q5p68 —23-JUL-2018: Redux, https://redd.it/913xx6 —02-SEP-2018: #ShortSeptember, https://redd.it/9c96vk —04-NOV-2018: Inflection Point, https://redd.it/9u1y3z Since the all-time high set on 17-DEC-2017, the cryptocurrency Bitcoin bear market has now elapsed 7 months with a peak decline of 70% in value thus far. The first leg of the crash from 17-DEC-2017 to 06-FEB-2018, saw a 70% decline where price collapsed from the all-time high of $19,891 to a low of $6,000 in just 51 days (BITFINEX). Since the 06-FEB-2018 low, price has wandered sideways on diminishing volume and volatility, contracting into a triangle pattern. A triangle formation reflects a balance of forces creating a directionless resolve: an equilibrium and indecisive psychological state of mind between the bulls & bears, a period of consolidation as the market deliberates its next move. Five waves are expected in a contracting triangle pattern, labelled as a-b-c-d-e waves. Under textbook Elliott Wave analysis, at least two of the five alternate waves are typically related to each other by the Fibonacci 0.618 golden ratio, and it appears wave-c and wave-e are the alternating candidates: https://i.imgur.com/77x90d4.png —wave-a: Rallied 95% from 06-FEB to 05-MAR, retracing a 50% Fibonacci of the downtrend wave that began on 06-JAN. —wave-b: Declined 45% from 05-MAR to 01-APR, retracing a 95% of wave-a. —wave-c:‘April Fools Rally’: Rallied 55% from 01-APR to 05-MAY. In regards to length, it was a Fibonacci 0.618% of wave-a and terminated just shy of the psychological $10,000 level. —wave-d:‘Sell In May And Go Away’: Declined 33% from 05-MAY to 24-JUN. In regards to length, wave-d equalled a Fibonacci 0.786% of wave-b. —wave-e: The final leg of the triangle pattern, and the shortest, has been underway since 24-JUN. Should wave-e equal a Fibonacci 0.618% of wave-c, it would do so at around $7,958 (BITFINEX) —and converging trendlines of the triangle suggest by mid to late JUL. It is common for this final wave-e of a triangle to either undershoot or overshoot the converging trendlines of the triangle. However, this wave-e must terminate below wave-c for the overall triangle to remain valid; i.e. below the MAY high of $9,990 (BITFINEX). Summary of targets to complete the triangle (BITFINEX): Textbook:
@7873: wave-e retraces a Fibonacci 50% of wave-d @7958: wave-e equals a Fibonacci 0.618% of wave-c
@8372: wave-e retraces a Fibonacci 61.8% of wave-d @8557: wave-e equals a Fibonacci 0.786% of wave-c @9084: wave-e retraces a Fibonacci 78.6% of wave-d
Once the triangle completes, the second leg, and most devastating leg, of the cryptocurrency bear market is expected to resume with a breakout in volume and volatility —the crash redux. Taking out $7,330 may commence the second leg of the bear market, at which point signals time to exit all cryptocurrencies. The Elliott Wave principle pinpoints the start of the ‘mania’ phase at $5,400 (BITFINEX) on 12-NOV-2017. At this level in time, price withdrew to create wave-4 as part of a 1-2-3-4-5 series of advancing waves: https://i.imgur.com/5rD1eo2.png From $5,400 to $19,891 manifests the steep parabolic price curve of the fifth and final wave. Therefore, taking out $5400 begins ‘capitulation’ of the earliest of public speculators and loyal hodlrs —amidst a volatile and instable marketplace surged in volume driven by margin calls, where mass media hysterics begin to peak reaffirming the ‘fear’ phase. Hence the psychological $6,000 has been guarded for the last +5 months since it marks support of the psychological USD$100 billion Bitcoin marketcap. https://i.imgur.com/CmZqsZV.jpg Initial expectation for the second leg bear market is towards $4,257 (BITFINEX) which marks a Fibonacci 78.6% retracement of the entire Bitcoin market which begins the ‘despair’ state of affairs; where reality of the bubble bursting only just is grasped as the 'blow-off' phase gains momentum. From a political and socionomic standpoint, the following events termed as “FUD” may begin to unravel during the second leg of the bear market: —Further laws/bans/restrictions upon cryptocurrencies invoked by countries/governments, calling for tighter regulation and fraud prevention: positive rulings, but perceived as negatives. —Prolonged exchange outages preventing deposits/withdrawals and management of positions; including hacking and exploitation of security flaws. —Exposure and collapse of further Ponzi schemes. —Majority of Altcoins currently around US$2,000,000,000 market capitalization becoming extinct. Manipulated alt/BTC pairs at highest risk of collapse; see deadcoins.com —Mergers & acquisitions of crypto companies, reduction of trading fees and margins/spreads, and launch of basket financial instruments (e.g. ETFs, index funds, etc), in the endeavour to revive and survive the market. —Individual bankruptcies and suicides. Based on historical manias, when a speculative asset bubble bursts, an approx 90%-95% collapse unravels in a period of 2 years: —thebubblebubble.com/historic-crashes —en.wikipedia.org/wiki/List_of_stock_market_crashes_and_bear_markets Chronicles of historical manias suggest the cryptocurrency bear market is likely to conclude by late 2019 or early 2020, with Bitcoin priced between $500 to $1,000. It is musing to project whether or not Bitcoin survives the crash. Commodities and currencies, and assets deemed as a store of value, unfold in A-B-C Elliott Waves in both bull and bear markets. Whereas assets such as stocks based on earnings unfold in 1-2-3-4-5 impulsive Elliott Waves in bull markets, and corrective A-B-C Elliott Waves in bear markets. The wave characteristics of Bitcoin and the popular cryptocurrencies have unfolded in 1-2-3-4-5 impulsive Elliott Waves in bull markets, and corrective A-B-C Elliott Waves in bear markets. Given the nature of wave characteristics, this suggests the behaviour of cryptocurrencies cannot be considered as a currency nor a commodity; and so therefore in their current state, shall never be adopted as robust mediums of exchange for goods and services or as a storage medium of value. Quite possibly, a second generation of viable cryptocurrencies may emerge in post 2020. Either way, the days of speculative parabolic price curves in the cryptocurrency markets is over, and any hopes of a return to the all-time highs is foolish hodlr's fodder. Elliott Wave speculative models indicative of price and structure, not time; i.e. the projections may occur sooner or later than anticipated; as follows: —BTC (Weekly): https://i.imgur.com/hcT0S4a.png —BTC (Daily): https://i.imgur.com/2CFdLqZ.png —BTC (4-hr): https://i.imgur.com/yTaybkm.png
A tragic prediction for the the next cryptocurrency bull market by Aaron Lasher, CSO of BRD
Listen to what Aaron thinks will be the cause of the next crypto currency bull market: https://www.youtube.com/watch?v=3BIkFkhMBtI It seems like Aaron is saying that the cause of the next bull run will be entirely from ponzi-like forces. He doesn't use those words, but that's what he is describing. I know it's a short video so Aaron couldn't go into detail, but still: what about the utility of crypto currency? Are we really at the point where this has been forgotten? Why are people not excitedly pronouncing that the next crypto bull run will be due to 'Amazon adopting X' or 'sweeping adoption of crypto Y in Venezuela to skirt harsh economic government manipulation'? This is not a dig at Aaron at all. He could well be right. However, I sincerely hope that he's wrong about what will cause the next bull run. I find his current prediction almost immeasurably tragic. What he's describing is completely unsustainable. It is a focusing of human energy and resources into a spiralling, wasteful, dead end. It's people buying because people are buying so people should buy because the price is going high so we should keep on buying! BRD app (originally called Bread wallet) started out life with an extreme focus on utility and practicality. It was and still is a really important piece of the Bitcoin puzzle. Satoshi designed and planned out this incredible cash system where SPV wallets (like BRD) were the intended primary mechanism of users interacting with it. Our plan was to onboard users by the thousands and then by the millions and maybe even by the billions. Bitcoin had purpose back then. Bitcoin grew because it was something that would "bank the unbanked", bring economic freedom to people who were victims of extreme economic manipulation by governments, and maybe... Bitcoin could even end war. Bitcoin was a better money. I really hope that Bitcoin Cash can play a big part in getting us back to that point.
Popping the Bitcoin Bubble: 5 reasons economists might be wrong
A CNBC survey this week found that 80% of Wall Street economists believe current Bitcoin prices are a bubble. Eight-zero percent. We can’t even get 4 out of 5 dentists to recommend flossing. Another Wall Street Journal study found 51 out of 53 economists surveyed thought bitcoin's price was an unsustainable bubble. Clearly, Bitcoin has a remarkable ability to bring the world’s economists together -- and just in time for Christmas! This news scares me a bit. I don’t want to be the guy buying up beach front investment property in Florida in 2007. Or Beanie Babbies in... well, pretty much ever. But there are at least 5 reasons I view these Bitcoin obituaries with skepticism. 1) Bitcoin threatens the role of traditional finance If I hopped in my time machine destined for 2010 and polled 53 taxi drivers I’m sure I wouldn’t find many bullish on Uber. I’d also be using a time machine for the stupidest purpose since Back to the Future 3. Most investment strategies are born out of financial institutions. These folks like being informed. Consider how far the Duke brothers went to obtain the 1983 orange crop forecast. Cryptocurrency is rooted in the tech community, not finance. I doubt many fund managers ever considered investing in Bitcoin, at least not until recently. If my only job was to invest money for other people and I missed the biggest investment opportunity of the century, I would probably be a bit bitter. 2) If everyone thinks its a bubble, is it really a bubble? The housing market in 2007 was a can’t-lose investment. Lie on your loan application. Scoop up a condo before the unit is finished being built Sell your condo several months later for 50% profit Everybody wins! Nobody seemed to think that housing demand could ever fall. Conversely, most people buying Bitcoin are very aware of some degree of risk. Corrections happen near weekly. And, clearly, the professionals have reached a consensus that Bitcoin is overvalued. I’m sure there are some Bitcoin investors who aren’t properly assessing the risk, like this idiot family that sold their home in October to buy in. But overall, people realize Bitcoin isn’t a sure-thing. -- Also, that idiot family just quadrupled their investment in 3 months. 3) People aren’t buying on credit As far as I’m aware, most credit card companies and loan agencies, aren’t going to throw cash at you to buy Bitcoin. In fact, all the exchanges I have worked with require direct bank transfers. The level of effort required to buy Bitcoin is unusually high. It may take someone several days to get verified and several more to fund their account. When you’re forced to think about your investment plans for a few days, you’ll likely make a more thoughtful decision. Both Bitcoin and handguns have a waiting period. 4) Coinbase is adding over 100,000 users a day A couple years ago I couldn’t talk about Bitcoin with anyone, because nobody knew (or cared) what the heck it was. Now, I can’t talk about Bitcoin with anyone because they are all tired of hearing about it! All of this brand awareness is driving a surge in demand. As any good Herbalife salesmen will tell you, “generating demand for your product is key... Now will you please please please buy $5,000 of milkshake mix?” 5) Bitcoin has been declared dead over 200 times BitcoinObituaries.com chronicles Bitcoin’s demise with an endless list of doomsday publications. As we’ve already established, economists really hate Bitcoin, and apparently publishers aren’t too fond of it either. Lots of people have claimed Bitcoin was a ponzi scheme, or unsustainable, or an alien plot to steal our mothers (Maybe that last one was just a movie.). But the blockchain keeps kicking, people keep investing, and publishers and economists keep being wrong. At this point it seems like a lot of writers are just too stubborn to admit that maybe they were wrong. Maybe a global decentralized currency does have a purpose. Maybe an asset can derive value from its users rather than a central authority. And maybe they can borrow my time-machine for a spin. About The Author I'm just a silicon valley marketer who has invested, mined, and spent various cryptocurrencies for the past 6 years.
Source - https://medium.com/coinscapture/how-to-identify-ico-scams-169a607d108b How to identify ICO scams? Various ICO’s in the cryptoworld act as an innovative financial model which helps the new blockchain based start-ups to raise funds. The capital generated during the ICO benefits the start-ups and also cut down the long procedures required for getting loans in the regular financial system. Along with them, even investors get benefits by earning huge amounts of returns. But this innovative way can also turn as a nightmare for some investors if it is a scam and all the money invested gets stolen. ICO’s are unregulated due to which scams are becoming the most common these days. These scams occur in two ways; the first way includes a fake ICO created by hackers that steals all the money invested and the other way includes hackers spoofing a legitimate ICO, making/tricking investors to pay them instead of the real company. ICO’s are sometimes very risky because they are vulnerable to both massive volatility and fraud. A recent study revealed about 80% of the ICOs conducted in 2017 were fraudulent which indicated many people to avoid them; which indirectly hampered the chances of a new coin to succeed. ICO scams till date Now, we know about how ICO scams occur, Let’s take a look at some of the biggest ICO scams in recent times:
OneCoin: This was clearly regarded as a Ponzi scheme and the worst scam faced by the cryptoworld stealing about $30 million in the countries like Thailand and China.
Centratech: Earlier this was not suspected as a scam because celebrities like DJ Khaled and Floyd Mayweather were endorsing it and the company also proposed a service that would allow users to spend cryptocurrencies as fiat money which attracted many people in the USA and raised about $32 million dollars.
Pincoin: An ICO scam that raised $660 million dollars from 32,000 investors in Vietnam. The company fooled investors saying that a token called iFan would be developed which will be used as compensation for the investors. But once the token was issued, the team disappeared.
Bitconnect: A Ponzi scheme that raised around $700,000 from investors in the USA as the users of Bitconnect were encouraged to trade Bitcoins and were also given assurance of substantial returns from their investment.
Plexcoin: Plexcoin is a return on investment Ponzi scheme that was held in the USA and offered more than 1300 percent return due to which about $15 million was raised from thousands of investors before the US Securities and Exchange Commission (SEC) intervened.
Points to evaluate the legitimacy of ICOs: There are several points in an ICO necessary to be considered before investing in it and avoid getting scammed:
Research about the company, team leaders and developers: A suspicious ICO will always lack detailed information about the company location, project’s team leaders and developers in order to avoid getting caught and accountable. So, it is highly recommended to check each and every information related to them before any kind of investment.
Whitepaper and Website inclusions: Website and whitepaper play a major role in gaining the trust of investors. It is necessary that points like the value of the project and the reasons why people should invest should be explained in detail and presented in an appealing way to the investor’s eye. So, the maximum of the people involved in the scam will often skip this step and try to allure investors.
Future plan of the ICO: ICO is the initial step that attracts the investor, if it lacks the future plan then it is a major indicator of the scam and the people associated with it have no long term plans because they are planning to run away with all the money that will be invested.
Promised good returns: It is always said that too good to be true then it probably isn’t true, so always check that what the project is offering, if it is offering more than your investment; probably it may be a scam.
Referral programs: If an ICO has a structure of referring and earning; then this could be a scam (Ponzi scheme or pyramid scheme) because people are encouraged to bring new investors for which they are rewarded and money flows continuously. Due to which many times a large number of new investors participate and everyone involved in the project stops getting paid.
Sudden sign of urgency: In an ICO scam, a sudden phase of urgency is created and investors are pressured to quickly make a decision.
Sensitive information: Many times people are scammed after collecting sensitive information like passwords, private keys or other security pins.
With increasing corruption, there are numerous scams occurring in the cryptoworld that has swallowed a large amount of money through ICO frauds. So it is the duty of every investor to exercise the utmost care while dealing with money and check minute details of the project before investing in it.
In 1957, the Encyclopedia Britannica – the Wikipedia of it’s time – formally acknowledged that Ponzi’s name had become synonymous with swindle. The “Ponzi scheme” officially had a name. In this podcast episode you will also learn, why Bitcoin is not a Ponzi scheme. “Bitcoin is a Ponzi scheme” Even today, in 2019, comments are posted around the Internet by people who insist on equating Bitcoin with a Ponzi scheme. In this article, easy to understand even for newcomers, we explain how this idea is absolutely wrong and based solely on ignorance. Just a few days ago people on a forum were calling Bitcoin a Ponzi scheme. Yes, we take it as an insult. We ... Bitcoin is not a Ponzi scheme. If one is to truly allege that the digital asset is little more than a massive ploy to defraud unwitting investors of their money, la Bernie Madoff, then one must admit that the entire stock market itself is one giant hustle, too. And people don’t make that connection. Because it’s not true. Bitcoin is, in fact, a legitimate and potentially life-changing part ... In a Ponzi Scheme, the founders persuade investors that they’ll profit. Bitcoin does not make such a guarantee. There is no central entity, just individuals building an economy. A ponzi scheme is a zero sum game. Early adopters can only profit at the expense of late adopters. Bitcoin has possible win-win outcomes. Early adopters profit from ... In 1957, the Encyclopedia Britannica – the Wikipedia of it’s time – formally acknowledged that Ponzi's name had become synonymous with swindle. The "Ponzi scheme" officially had a name. In this podcast episode you will also learn, why Bitcoin is not a Ponzi scheme. Views: 1,092
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