Do I wire them the money? Do they take it out of a bank account?

in #bitcoin6 years ago

Pyramid schemes like Bitcoin collapse when you can’t recruit 10,000 new people a day to put $1500 in. Sadly this money is not to pay early investors. It’s needed to run proof of work miners using 35 terawatts of electric - the world’s most inefficient database per transaction
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So I put $1,500 USD in. I get "x" amount of bitcoin. And my $1,500 USD goes to the miner? Do I wire them the money? Do they take it out of a bank account?

Miners need about $15mm a day of fiat to keep the servers online. Where do you think it comes from? You think they float a bond issue at Bear Stearns?

This is honestly why the "hodl" narrative is so impt. Small float of coins they don't need 10k people a day they just need their cult not to "dump" and just "pump."

The modern equivalent of a chain letter. Which went to email fwd, later with virus attachment. Which is now social memes, with sending money over the internet for fake money in return.