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Bitcoin is a ponzi scheme

Bitcoin was intended to be a way to transfer value from person to person online without the use of a central bank. What is has become is nothing more than a ponzi scheme.

In its origin, the concept of Bitcoin was a good one with the potential for real value in how we do business online. But as the popularity of Bitcoin and other cryptocurrencies grows, the value for actually doing what they were designed to do has fallen away.

There is no way to actually do real business online with Bitcoin or any other cryptocurrency as far as I can tell. There are so few places willing to accept them that it is hardly worth the effort. That is unless you are a criminal and you don't care about outrageous fees attached to every transaction and the slow response time because it really isn't your money in the first place.

Cryptocurrencies in general and Bitcoin specifically are no more than an investment scheme. The only real way to make money with them is to buy at a lower price than you are selling them at. There is nothing backing the Bitcoin. It is true that there is nothing backing the US Dollar but the government regulates it and the supply and demand of daily goods help keep it in check too. Bitcoin has exploded in the last few months due to people scrambling to get into the market. This has driven the cost of Bitcoin through the roof for no good reason.

Proof that Bitcoin has no real value is that the few places that do accpt Bitcoin price their goods and services in the local currency and do a Bitcoin conversion at the moment of the sale. Nothing is actually priced in Bitcoin. You won't find things for sale for say 0.00100 Bitcoin and see that price stay that all day, every day for days on end regardless of the value of Bitcoin going up or down compared to real fiat currencies. You would never walk into a store and see the price of goods jump or fall continuously as you shop and then only know what you are going to pay at the moment of checkout. 

If anyone was to lock the Bitcoin price of a product or service, then you would see massive inflation which is one thing Bitcoin claims to avoid. I say this because if prices were only adjusted say weekly, a product priced at 0.00100 Bitcoin on Monday would be still be 0.00100 Bitcoin on the following Sunday, but the value against any fiat currency would explode wildly. For example on 12/1/2017, that item would cost about $99.00 US Dollars but only 6 days later on 12/7/2017 it would cost about $135. The cost inflated around 35%. Imagine that kind of price jump any place else. You don't see this in any fiat currency of any stable nation.

When you buy Bitcoin or other cryptocurrency, you will pay a transaction fee. You will notice that the fee is paid in what ever currency you used to buy the cryptocurrency. They don't make you buy some number of Bitcoin then take a slice of those as the fee. That is because people want to get paid in money they can actually spend. 

When you sell Bitcoin guess what, you will pay a transaction fee there too. This fee is paid in Bitcoin at least as it gets paid to the miners doing the work to transfer your Bitcoin to another person.

But it doesn't stop there. Unless you made a private sale from person to person, you will pay another fee to get your cash out of the holding area of the firm you sold through down to your bank account.

So if you buy today using US Dollars, you can expect to pay around $18,000 for one Bitcoin plus some untold fee which depends on how you buy. Then you need to hold that coin for some period of time waiting for the value to go up. You won't really be able to spend the funds if you expect to make any profit. Even if you spend just a small portion, your transaction fees will quickly eat up the balance. A basic transaction from you to any one other person will cost you around $15 US Dollars regardless of the amount you transfer. 

In a few months assuming this trend continues, your investment will grow. It may double or triple or more if you are lucky. But you need to have a good sense on when to get out. If you are comfortable with your profit then find out what it will cost you to sell and do it. Take your money and run. If you wait too long and the price starts to drop quickly, you are going to find it nearly impossible to sell without taking a loss.

If you are saving for your future, avoid Bitcoin and all other cryptocurrencies because unless you are lucky, you will lose your savings.

If on the other hand, you have plenty of cash to risk on the roll of the dice then go for it. It may be a wild ride and you could come out a winner. But as with any risky investment, you could lose it all just as easily.

There is money to be made in cryptocurrency if you can handle the high risk and you don't mind taking advantage of the next person in the feeding chain.

If you are a decent person looking to actually use an alternative form of currency to do real business in the real world, avoid all forms of cryptocurrency. They are all a scam at this point.

I suspect at some point in the future someone will get it right but right now, they simply don't do what they claim.

Here are a few YouTube videos that you may enjoy on this subject:


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