main issue with all cryptocoins or why all crypto will fail

crazylogman

New member
Out of all of the issues that cryptocoins have, this is one of the main issues with any of these systems and why crypto in general will fail, except for scams or fringe uses like illegal activity.

Almost anyone can fork off of most of the existing open sourced systems or simply start a new one from the same tools and libraries, or, more rarely, write their own.

You'll never be able to have a consensus or mass adoption of any one system when on one hand you have an endless pool of scammers ready and willing to start a new one, hype and clout it up and rug-pull it, and on the other hand there will always plenty of consumers who will shift to a new network with lower fiat fees so they can either send and receive fiat money, do some money laundering, buy something off the darkweb or simply have yet another chance at buying a few pump and dump lottery tickets and hoping they can time their exit right.

All of this stuff is a tool assisted speed run of wildcat banking and silver certificate scams with extra steps layered with the get rich options of pumping and dumping penny stocks.

https://en.wikipedia.org/wiki/Wildcat_banking

Even worse, the only way for anyone to realize and take any profit from any investment in these systems is for someone else to lose because it's a zero sum game.

https://en.wikipedia.org/wiki/Zero-sum_game

The only way any of these price increases even work or happen is because someone is putting fiat into the network and supporting it. Any time someone cashes out with a price increase, it's a net loss for everyone else with fiat in the pool.

It's basically a really complicated Ponzi scam by definition: https://en.wikipedia.org/wiki/Ponzi_scheme
 
It's a pessimistic point of view because you found flaws in the systems, but if you look at the good things that have been provided, you will have an optimistic view. It really comes down to DYOR.
 
Your post started out fine. Then you start with pointing out the zero sum game. Which is true but applies to other financial markets as well. Then you make the tired Ponzi argument that has been debunked a million times. Nothing points to it being a Ponzi scheme 'by definition'. Ponzi schemes are quite literally defined differently.
 
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