Victor Ugochukwu · Dec 14, 2020 . 5min read
Expert Stock trader and Investor Dave Portnoy calls Bitcoin a Ponzi Scheme, Crypto Enthusiasts disagree
Bitcoin advocate Jameson Loop took to twitter criticizing Dave Portnoy for advocating Bitcoin as a Ponzi Scheme.
By Victor Ugochukwu · Sep 27, 2020 . 8min read
Bitcoin Maximalist Jameson Lopp took to Twitter and called out Dave Portnoy Barstool Sports Founder and President who also runs Davey Day Trader global; for calling Bitcoin a Ponzi Scheme.
Lopp in his tweet quoted Portnoy saying;
“Bitcoin is just one big ponzi scheme. I understand what I think you guys think it is but to me it is a ponzi scheme that you get in and you have to be the one not left holding the bag”
Lopp, a well-known developer and Bitcoin Maximalist who also written numerous literature to back his firm stance disagreed by saying,
Oh dear Dave, by that definition every publicly traded asset is a Ponzi.Jameson Lopp
Without any surprise, others have been sharing their opinions. Bill Barhydt, CEO of Abra Technologies which was recently fined by SEC for selling unregistered securities said,
It blows my mind that this guy has an audience
Another person responded to Lopp’s criticism of Dave and said,
Dave is an investor or rather a speculator or gambler. In it for the fiat. Put fiat into whatever, and get out with more fiat. For me, getting into Bitcoin was the actual exit. No desire to ever get out of Bitcoin again.
Big Bank bailouts with public funds have the characteristics of Ponzi and Satoshi was pointed towards this in Bitcoin Genesis block.
As we already know, Satoshi’s cryptic message in Bitcoin’s genesis block in 2009 during the brutal economic recession was,
The Times 03/Jan/2009 Chancellor on brink of second bailout for banks
And as expected someone was going to criticize Dave Portnoy’s “Bitcoin is a Ponzi Scheme” stance by saying,
If Bitcoin is a ponzi scheme, then what is the tradional stock market like?Joaa @exceltior
Feds stepping in all the time to save it, shares buy backs after being bailed, IPOs of phony companies, uncorrelated growth, and etc…
Another Twitter fellow in backing Lopp’s reasoning said :
People try and use colorful descriptions/complicated explanations for simple things when their logic is pwned. Ponzi’s are simply where the guys that get in early, profit more than the guys that get in late. By this definition, the entire stock market can be considered a Ponzi.Hess, @Hesstosterone
Popular Bitcoin analyst Willy Woo even joined in the conversation and typified even early-stage startups as Ponzi schemes. He explained his position,
Structurally people call things ponzis when it looks like a bubble and with no real productivity shown.Willy Woo, @woonomic
Early stage startups with ever increasing valuations fall into this camp.
The thing is, it looks like a ponzi until it takes over as the new normal and changes the world.
Corporations turning into Bitcoin maniacs in an attempt to maximize returns
Clearly, the “Bitcoin – Ponzi Scheme” debate looks like what will never have a conclusive resolution between the warring factions. However, Bitcoin enthusiasts have history on their side when you look at those who eventually came around after bashing Bitcoin. Whether it’s JP Morgan, Kevin O’Leary of Shark Tank or even Peter Schiff who looks more like a one who enjoys trolling Bitcoin fans but secretly invests in the asset, more people are buying into the asset class. Not to forget, Bitcoin was the best performing asset class of the last decade. Hence, little wonder most people want a taste of it. Surely Microstrategy which recently invested $250 million into Bitcoin isn’t investing in a Ponzi Scheme with public funds.
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