/biz/ - Business & Finance

[Anonymous No.569439]

/biz/, can you educate me on why cryptocurrencies are considered a scam / ponzi scheme / bad?

[Anonymous No.569448]

The vast majority are pump and dumps. Bitcoin operates more as a bubble than outright scam, but the effect is much the same.

As for the cryptocurrencies themselves, they're largely pointless outside of specific applications. As a general currency they're awful.

[Anonymous No.569478]

>>569439
you are basically trading you hard earned cash for numbers.And like>>569448
stated it operates on a bubble. I know because they would get everyone on twitter to pump a stock and then dump it when everyone bought.
Didnt you noticed how the priced dropped when mt.gox went under?

[Anonymous No.569479]

>>569478
>stock
sorry meant currency

[Anonymous No.569492]

>>569448

Yeah they're pretty useless aside from the specific application of making financial transactions.

[Anonymous No.569497]

>>569492
>financial transactions
They're redundant and actually worse than "normal" currencies for day to day transactions. The only financial application that I've actually heard of people using that makes sense is using it basically "wire" money internationally.

[Anonymous No.569503]

>>569497

Worse how?

[Anonymous No.569510]

They are a fiat currency without the protections, backing, or security of a major government or society. They live and die on random internet anons assigning value to them in the hopes that business will exchange them for real goods.

[Anonymous No.569511]

>>569503
At the individual scale it's volatile with no consumer protection. There's a reason the great majority of merchants who accept Bitcoin price in normal currency and use a processor like Bitpay.
At the macro scale it's completely unsuitable as the basis for an economy in the modern world.

[Anonymous No.569515]

Coz they're backed by air.

[Anonymous No.569518]

Their only real utility is laundering money. It also provides the illusion of security to the conspirators who believe the federal reserve will cause the US dollar to collapse.

[Anonymous No.569529]

>>569511

You're talking about the volatility of a fiveish year old currency that was incredibly thinly traded until a year ago. I do agree on that point though.

Regarding consumer protection, half of consumer protection today is simply smoothing over the enormous warts of the pull-based CC system and then the other half is just facilitating CC fraud. Buyer protection is entirely possible in Bitcoin via its escrow system so I feel like 99.99% of legitimate consumer protection is already covered anyways.

Regarding monetary policy, time will tell, but that has nothing to do with "day to day" transactions.

[Anonymous No.569534]

>>569529
I've seen the Bitcoin escrow system. It's wholly inadequate compared to the current system.
>nothing to do with "day to day" transactions
Eventually it does.

[Anonymous No.569546]

>>569534

I'm very familiar with the scripting system on which Bitcoin's escrow transactions are based, in what way is it inadequate?

[Anonymous No.569557]

>>569546
Inconvenient and doesn't solve the other consumer protection issues.

[Anonymous No.569572]

>>569557

Inconvenience is just a matter of time and development effort, what consumer protection issues are you specifically concerned with anyways? Buyer protection is my largest concern and escrow addresses this.