Bitcoin is a pyramid scheme, according to Bitcoin antagonist and gold shill Peter Schiff.
Even though Bitcoin is by far the best performing asset of the last decade, its network effect is bulking out, and adoption grows more every day, the obsessed Schiff still sees it as a scam.
Schiff, who makes his wealth from gold, has long berated Bitcoin, and does his best to give himself a stage to make his point as loud and wide as possible, and Mr Motormouth’s flawed argument gets more comical with every discharge.
Is Bitcoin a Pyramid Scheme?
Euro Pacific Capital Chief Executive, Peter Schiff, is never slow or quiet to spout his defamation of the world’s leading cryptocurrency, even though his presupposition is chronically flawed.
In a tweet at the weekend, Schiff again claimed that Bitcoin was a pyramid scheme, saying success was only possible for those ‘who get in early.’
‘The very nature of #Bitcoin requires owners to encourage new buyers to enter the market. Without new buyers coming in, there is no way for existing HODLers to get out. As with any pyramid scheme, success is only possible for those who get in early if lots of others get in late.’
What is a Pyramid Scheme
By definition, a pyramid scheme is an illegal form of investment in which each paying participant recruits two further participants, with returns being given to early participants using money contributed by later ones.
Schiff’s mouthful, therefore, that Bitcoin is a pyramid scheme is completely flawed, and his pathetic vendetta is probably helping Bitcoin’s reputation.
Bitcoin is not an illegal investment, and if it resembled anything like a pyramid scheme, the government would have every right to make it illegal.
Bitcoin doesn’t need participants to invest money to make early participants rich. The fact that early investors are making more is what investing early is all about. This is why investors like to get in early with every investment.
Who has benefitted most from buying properties, boomers or latter generations? Is real estate a pyramid scheme, Peter? Probably not, because olde gobshite probably benefitted massively from it.
Also, if Schiff’s fickle remonstrations were correct then by the very nature of his argument, his beloved gold is also a pyramid scheme.
Think about it, who benefits most from gold: those who invested when it was $500 (early investors) or those getting in now?
Of course, it’s a pathetic question that doesn’t even need answering, but Schiff, who seems to hate Bitcoin so much (missed out on early investment), continuously berates Bitcoin, but at the same time, embarrasses himself.
Bitcoin Isn’t a Pyramid Scheme
Schiff’s never-ending narrative of Bitcoin being a pyramid scheme, ponzi scam, deceptive racket, fraud, whatever is pathetic.
The truth is Bitcoin is the soundest money and most democratic network ever created, and the flimflam Schifty spouts is arguably more fraudulent than the wool he tries to pull over his believer’s eyes.
Schiff’s gold empire in which he repeatedly tries to entice the uninitiated whenever he has a stage is at the very essence of Schiff’s argument: a pyramid scheme, and that is why he’s scared of Bitcoin.
Author: Tommy Limpitlaw
Is Bitcoin an asset class?
Yes. Bitcoin is a new type of asset and has created a new asset class: cryptocurrencies. Bitcoin is by far the most popular, and invested in cryptocurrency. However, it is relatively volatile, but that is typical for new asset classes, as they find their true value in the world.
How do I liquidate Bitcoin to USD?
There are many ways to turn your Bitcoin back into USD or most other fiat currencies. USD is the most obvious and liquid fiat/BTC, and can be traded at many cryptocurrency exchanges. However, to do so, you will have to complete a KYC form.
What is Bitcoin backed by?
Bitcoin is backed by mathematics and the security of 800,000 petaFLOPS of processing power, that is distributed on hundreds of thousands of devices around the world. Nothing in the code can be changed unless somebody takes control of more than 50% of the processing power.
How can I get free Bitcoin?
Nothing is really free, because even when you earn free Bitcoins you’re giving up your time, which is precious. But you can earn free Bitcoins. If you are a gamer, there are games like Bitcoin Bounty Hunt which allows you to shoot your way to Bitcoin riches. Or you can save your Bitcoin in an interest bearing account and earn some BTC interest. Be careful with these, and only go with legitimate companies, though.