Is Bitcoin a pyramid scheme?
The Bitcoin controversy is that Bitcoin is a pyramid scheme.
The argument is that the original adopters of Bitcoin were able to acquire many coins for a very low exchange rate per dollar. Currently Bitcoins are trading at about $4 per bitcoin, but at the beginning, bitcoins were acquired for only $0.05 which means such people have a tremendous 7,900% increase in value. If they bought $100 worth of bitcoins, they would now have $8,000. So, anyone who gets in early on Bitcoin is at a huge advantage.
The counter-argument is that buying bitcoins at a so-called "low" price doesn't take into the fact that buying into an unestablished not-well-adopted system has such great risks that it is the real reason why they can be sold at such low prices. Just as buying a start-up company or stock has high risk and tremendous potential.
Also, some say bitcoin is economically unfeasible because bitcoins have no intrinsic value.
[edit] See also
Leave a comment
Please leave your comments for this article on ''Is Bitcoin a pyramid scheme?''. We are also looking for volunteers!
