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Category Artwork (Digital) / Comics
Species Cervine (Other)
Size 800 x 3980px
File Size 1 MB
The value of money is the network of people demanding it. If lots of people demand a particular good, then it is rational for you to demand it as well because you know there is a big network of people all capable of providing for you in exchange for the money good whenever you need something. There is no requirement for money to be backed by an issuing institution; in the past all kinds of odd things have been used as money which were not backed by institutions, including beads and gold.
I'm afraid that you have been misled about there being no control over how much is ever created. There is actually a strict release schedule that was devised when it was originally programmed which tapers off to a maximum of around 21 million bitcoins. It would not be possible to change the schedule without a network-wide consensus, which is very unlikely.
Bitcoin is not a Ponzi scheme because it is not necessary to expect that initial investors will ever cash out. Furthermore, there is no guaranteed rate of return. In fact, Bitcoins offer no returns. Their value proposition is not that bitcoins receive dividends from the investments of future buyers, but simply that more and more people will use them to be liquid and they will, consequently, eventually become the world's money. If this happens, initial investors will never have to cash out; they simply hold the bitcoins all the way up. Thus, Bitcoin does not satisfy the ordinary definition of a Ponzi scheme.
Many Bitcoin investors believe that they have already cashed out--ie, they have cashed out of less viable currencies, such as the dollar.
I'm afraid that you have been misled about there being no control over how much is ever created. There is actually a strict release schedule that was devised when it was originally programmed which tapers off to a maximum of around 21 million bitcoins. It would not be possible to change the schedule without a network-wide consensus, which is very unlikely.
Bitcoin is not a Ponzi scheme because it is not necessary to expect that initial investors will ever cash out. Furthermore, there is no guaranteed rate of return. In fact, Bitcoins offer no returns. Their value proposition is not that bitcoins receive dividends from the investments of future buyers, but simply that more and more people will use them to be liquid and they will, consequently, eventually become the world's money. If this happens, initial investors will never have to cash out; they simply hold the bitcoins all the way up. Thus, Bitcoin does not satisfy the ordinary definition of a Ponzi scheme.
Many Bitcoin investors believe that they have already cashed out--ie, they have cashed out of less viable currencies, such as the dollar.
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