Good read on the subject by a computer scientist from a local university:
Seems concise and covers up every aspect as to why it is a ponzi, there's also Antsstyle's excellent article which covers every aspect of why cryptocurrencies aren't what their creators claim they are:
This is the in-depth follow up to this brief article:
These two articles cover my stance on crypto and all related "technologies" in far more detail than I ever could spare the time for.
To respond to that article - because I've seriously looked at crypto as both investment/good money source and as an ideal of progress - I think what disguises the Ponzi part of Bitcoin is that there was, well, probably even is, a collective idea that crypto would create a new power plane over governments and controlled banking. Power to the people, sort of, and the core of that idea is that the collective, the community, cashes out and pays for transactions to be made.
In other words, you're paying a bit of tax to use a new system of moving money around, which could upset the power balance the world over, and possibly even in a good way.
To give that more credence, look at how Russia got locked out of Swift lately. A Bitcoin transaction that would be 'as trusted' as a transaction over Swift would have given a totally different outlook over the current war in Ukraine. That sort of power. Not the best example of how it would create a positive outcome, but an example nonetheless... The fact is, the Dollar is still the world's coin and the US exercises immense power through it, and can even hold onto it for possibly longer than it should be given credit for. This idea does enter the minds of quite a few people the last ten-twenty years, and somewhat fewer people before that.
So, there was, - is - a defense against the argument of saying 'this is a Ponzi scheme'. And crypto still rides on that defense; stablecoins are an example of belief in that defense. And I think a very large number of people have dug in on that defense and aren't leaving the trench, because they might get rich.
Others dive into new trenches every day and slowly bleed money with frequent trades, chasing their imaginative gold mine. Still others, and I believe a number on TPU are there plus I know a couple IRL, jumped in very early and see that their dollar has turned into a hundred of them, so they'll stay too to see a thousand.
It really depends on your perspective how much of a ponzi scheme this really is. For those stepping in now, it most certainly is one. For those who figured things out before mainstream did, they're riding the wave so why would they care. And yet others who just mine in some profitable way, are generating
money for an initial investment. But if people still believe in the ideal of what it should be or become, well... yeah, you haven't paid attention. The game is already more rigged than fiat
As to your second post about your own experience... yeah. This is the way the world turns, we have collected a rich history of examples by now and crypto is yet another. There is reason our current financial 'fiat' systems are as complex as they are. The world is f'ing complex and humans are assholes that always think about themselves before others. Or at least, those humans exist, and because some of those exist, everyone is bound by strict rules. What we have today in the real world, really is the best implementation of safe financial trades. Can it be improved, iterated upon? I'm certain. But these 'great resets' are nonsensical and basically the mind of a child at work - no life experience involved. The only thing that's standing is the core tech, the blockchain, and it ironically isn't at its best in large volume transactions, but rather at tracking
transactions, and facilitating trustworthy data.
Did you not read? Hence the reason I said "we're almost there now". Sure we are heavily dependent on computers in the financial market, but its not all integrated globally into a single centralized system where everyone is using the same currency. There's nothing preventing you from pulling physical cash out of your wallet and buying something. A bank's system might crash or be unavailable, but it won't keep you from being able to make a purchase. Only those relying on credit/debit cards won't be able to buy anything due to the bank's system being unavailable.
Being aware of vulnerabilities does not equate to being aware of all vulnerabilities, therefore the potential of this critical infrastructure being successfully attacked or sabotaged is still there.
Oh yes... I dread the day paper money is truly considered 'no longer needed'. I hope I'm dead by then, because the cyberpunk dystopia has then truly taken root and won't ever go away.
Paper money is essential to our autonomy. The irony of those 'freedom fighters' pushing crypto couldn't be greater.