Quote Originally Posted by Rjk View Post
I wouldn't exactly call it a Ponzi scheme, but it does seem to be entirely based on froth, which you have to question if it can sustain its value on that alone without having some underlying utility.

with a Ponzi scheme I guess it will be sustained for as long as they have new investors available
That's the similarity with a Ponzi. When you buy, you need more people to want to buy it. Just as in a Ponzi you need investors underneath you in the pyramid.

Traditional stocks move on company profits, etc, external factors affect it. With crypto, it's only how many people want to buy it. So as soon as you've bought a coin, you need to encourage others to buy.

I'm not trying to be down on crypto, but its value is solely in how many potential buyers there are. At the moment anyway.