From 26d498fb85ac1301fc0933d64250a0d48d3e0880 Mon Sep 17 00:00:00 2001 From: Ewout Wieten Date: Tue, 10 Jan 2023 14:09:13 +0100 Subject: Initial commit --- entry/crypto-ponzi/index.html | 56 +++++++++++++++++++++++++++++++++++++++++++ 1 file changed, 56 insertions(+) create mode 100644 entry/crypto-ponzi/index.html (limited to 'entry/crypto-ponzi/index.html') diff --git a/entry/crypto-ponzi/index.html b/entry/crypto-ponzi/index.html new file mode 100644 index 0000000..32ab363 --- /dev/null +++ b/entry/crypto-ponzi/index.html @@ -0,0 +1,56 @@ + + + + Cryptocurrency is a ponzi scheme | ewy.one + + + + + + + + + +
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Cryptocurrency is a ponzi scheme.

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+ The "ponzi scheme" is named after some italian guy that ran a business that used new investors' money to + pay old investors, making it seem like their investments were bearing fruit. Now, that probably doesn't + sound like cryptocurrency to you yet, but I hope to make a compelling case by the time you finish reading + this page. +

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+ Have you ever noticed when someone invests in crypto, and it immediately usurps them and becomes their + lifestyle? This doesn't happen to everyone, but I've seen it occur at a roughly 50% split. This happens + because their investment holds no inherent value. They simply purchased some immutable + bits: they don't mean anything, they don't do anything, but that's where the value comes from: they cannot + be changed. This is why the crypto-kings are so preoccupied with upholding the legitimacy of their bits. + They need new investors to uphold the value of their holdings, or it will implode. +

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The blockchain is neither immutable nor decentralized.

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+ The blockchain is not decentralized. Although you could run your own node - and waste hundreds of gigabytes + of your precious storage, not to mention bandwidth and processing power. Nobody wants to do this; this has + caused several third parties to show up and provide APIs for interacting with this blockchain. If any of + these APIs see cause for blocking (or - god forbid - alter) your queries, you'll have to move to a different + provider, not dissimilar to existing online payment systems. +

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+ The blockchain is not immutable. If someone were, for example, to commit child abuse content to a blockchain, + or if there has been a major hack (this happened), the corporation managing said chain can simply roll back + to a previous version of the chain and start again from there. Although neither of the blockchains + prohibit the existence of the other, the value of the "currency" in the pre-fork chain will plummet to zero, + either because the robbed people want their tokens back, or because nobody wants to host child abuse content + on their node. +

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