Re:I watched a friend of mine pump a shitcoin on Binance by ...
by chatmasta on Tuesday July 12, 2022 @11:59AM
(#32071828)
A lot of people got rich from Madoff’s Ponzi scheme. The problem is they never cashed out their gains. You see the same thing in these kind of crypto trades - yes, you’re participating in a Ponzi scheme, but it actually works as long as it does keep getting new money to buy out your entry position… which can continue happening for quite a long time before actually collapsing.
There are also layers to the Ponzi scheme. The alt-coin is just the first one. Even if you cash out for a profit, you probably didn’t even sell it for fiat directly, but sold it for some “less risky” currency like Ethereum or Bitcoin. One might argue you’ve only moved from one a smaller Ponzi scheme to a larger one. But then again… trading across pools of risk is widely accepted as a method of generating wealth. So who are we to judge?
Re:I watched a friend of mine pump a shitcoin on Binance by ...
by wpietri on Tuesday July 12, 2022 @12:09PM
(#32071984)
For sure. It's only a profit when you directly hold more cash than you put in. Madoff's victims didn't lose their money when he finally crashed. They lost it when they put it in.
There are also layers to the Ponzi scheme. The alt-coin is just the first one. Even if you cash out for a profit, you probably didn’t even sell it for fiat directly, but sold it for some “less risky” currency like Ethereum or Bitcoin. One might argue you’ve only moved from one a smaller Ponzi scheme to a larger one. But then again… trading across pools of risk is widely accepted as a method of generating wealth. So who are we to judge?