Merged Bitcoin - Part 3

[novaphile]

Strategy’s $100 Peg Breaks: Is the Bitcoin Demand Engine Stalling?

As STRC preferred shares slip below par, Strategy pivots to equity sales to fund a fresh $101M Bitcoin purchase.

www.sentisignal.com

here's an article about the problem with the strategy stock, and why this might be the last nail in the coffin



and it's actually $89 now. see, mike needs it pegged at $100, because



basically, people were buying the stock, he used anything above $100 to buy bitcoin, it put upward pressure on the bitcoin price making his stock look more attractive so people bought more, and so he would buy even more bitcoin, and so on. line goes up. sound foolish? i thought so.

but what happens when you've run out of fools and the line goes down? and you're sitting at an unrealized loss of double digit billions of dollars on your asset, and you've spent your reserves on buying bitcoin to try and prop up it's falling price, people have been selling the stock because you started offering premium stocks that pay dividends that you need to fund. you can't sell bitcoin because that'll further drop the price, you can't issue new stock because nobody wants to buy, you can't raise yields on your premium stock because you can't pay the higher dividends because you don't have the cash. you can't do anything with the bitcoin besides sell it because it's useless so it's not making you any money, and he has so, so much of it.

isn't that what happens to ponzi schemes when they fail? that's how it works, right?

No, no, no, NO!

It's totally not a ponsi scheme because there isn't one person benefiting from the rubes.

 

[psionl0]

https://www.theblock.co/post/405302/jpmorgan-bitcoin-mining-btc-production-cost

20% of bitcoin miners not profitable, mining estimated to cost more than the reward

This is consistent with basic economic theory. The more profitable it is to manufacture and sell a produce, the more suppliers are enticed to do the same thing. These additional suppliers will depress the price of the product (because they increase the supply of the product) or increase the cost of making the product because they add extra competition for the resources required to make the product.

Some of these unprofitable miners will continue mining anyway int the expectation (hope?) that the price of bitcoin will rise in the future.

 

[psionl0]

It's totally not a ponsi scheme because there isn't one person benefiting from the rubes.

A ponzi scheme doesn't have to be run by a single individual but it has to be run by somebody (a group or a corporation for example).

So while strategy may be running a ponzi scheme, bitcoin isn't being "run" by anybody so bitcoin itself can't be a ponzi scheme.

 

[dirtywick]

i'm sure saylor's defense, after it collapses and when investors want to hold someone accountable, is that he didn't lie about what he was doing so it's not fraudulent

 

[dirtywick]

Strategy (MSTR) Falls Below $100 For First Time Since 2024

Strategy (MSTR) shares fell below $100 for the first time since March 2024 as Bitcoin's drop to around $61,000 left the company sitting on more than $11 billion in unrealized losses.

bitcoinmagazine.com

strategy continues its slide, strc lost its peg and continues to drop, strategy dilutes shareholders to buy and try and put upward pressure on bitcoin, which is still sliding towards a sub $60k price. looking ugly for a once promising financial strategy based on the theories of charles ponzi

 

[John Albert]

A ponzi scheme doesn't have to be run by a single individual but it has to be run by somebody (a group or a corporation for example).

Citation?

bitcoin isn't being "run" by anybody so bitcoin itself can't be a ponzi scheme.

Bitcoin is a computer-automated Ponzi scheme.

Some of these unprofitable miners will continue mining anyway int the expectation (hope?) that the price of bitcoin will rise in the future.

This is consistent with the Greater Fool theory. There are a lot of exceptionally great fools in the crypto space.

 

[dirtywick]

oh boy

 

[dirtywick]

https://www.thestreet.com/crypto/markets/analyst-compares-saylors-strategy-to-bankrupt-crypto-project

in the midst of what appears to be strategy's collapse, here's a comparison of strategy with terra

 

[psionl0]

Citation?

You can look up Wikipedia as well as anybody else.

Bitcoin is a computer-automated Ponzi scheme.

Citation?

This is consistent with the Greater Fool theory. There are a lot of exceptionally great fools in the crypto space.

The last time you made this claim, bitcoin cost $1.

 

[John Albert]

A ponzi scheme doesn't have to be run by a single individual but it has to be run by somebody (a group or a corporation for example.

Citation?

You can look up Wikipedia as well as anybody else.

Yeah, I sure can.

And nothing in the Wikipedia definition says that Ponzi schemes must benefit a single person or organization.

Bitcoin is a computer-automated Ponzi scheme.

Citation?

Sure. How about Wikipedia:

​

Ponzi scheme

​

From Wikipedia, the free encyclopedia​

For other uses, see Ponzi (disambiguation).​

For schemes that promise rewards based on enrolling ever larger numbers of people, see Pyramid scheme.​

​

A Ponzi scheme (/ˈpɒnzi/, Italian: [ˈpontsi]) is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors.^[1] Named after Italian con artist Charles Ponzi, this type of scheme misleads investors by either falsely suggesting that profits are derived from legitimate business activities (whereas the business activities are non-existent), or by exaggerating the extent and profitability of the legitimate business activities, using new investments to fabricate or supplement these profits. A Ponzi scheme can maintain the illusion of a sustainable business as long as investors continue to contribute new funds, and as long as most of the investors do not demand full repayment or lose faith in the non-existent assets they are purported to own.​

Ponzi scheme - Wikipedia

en.wikipedia.org

As I've said before, it's a combination Ponzi scheme and pump-and-dump scheme.

The last time you made this claim, bitcoin cost $1.

So what?

The credo of "number go up" doesn't prove it's not a scam.

The FBI estimates that more than 181,500 people file formal complaints regarding cryptocurrency scams in the United States every year. In 2025 alone, victims lost an estimated 11.4 billion to 17 billion, with average losses of about $62,604 per individual. Nearly 18,600 of these complainants lost over $100,000 each, often wiping out their entire life savings or retirement accounts.

https://www.fbi.gov/news/press-releases/cryptocurrency-and-ai-scams-bilk-americans-of-billions

 

[psionl0]

Sure. How about Wikipedia:

​

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

Of course, you omitted the part of the Wikipedia article that didn't support your notion that ponzi schemes don't have to be run by a person or organisation:

In a Ponzi scheme, a con artist offers investments that promise very high returns with little or no risk to an investor. The returns are said to originate from a business or a secret idea run by the con artist. In reality, the business does not exist, the idea does not work in the way it is described, or the extent of returns is made up or exaggerated.

So what?

So it looks like you are about to repeat your stale 15 year old predictions that have yet to come to fruition.

The FBI estimates that more than 181,500 people file formal complaints regarding cryptocurrency scams in the United States every year.

You're a little late to the party. Dirtywick has been posting endlessly about crypto scams already. Of course, you will make the same erroneous assumption that if a scam is run that involves a product then the product itself is a scam.

 

[John Albert]

con artist

Yes, con artists.
.

 

[Andy_Ross]

Bitcoin is down 53% from its high of $126,273. That's $67,243 gone per coin. $2 trillion wiped out across crypto. Donald said America would be the "crypto capital of the world."
He ran a pump-and-dump on everyone.

Crypto markets have erased an average of $8.8 billion per day for 261 days straight
Crypto is a scam.
Get that through your heads.

 

[dirtywick]

just wait until strategy starts selling

 

[John Albert]

Bitcoin is down 53% from its high of $126,273. That's $67,243 gone per coin. $2 trillion wiped out across crypto. Donald said America would be the "crypto capital of the world."
He ran a pump-and-dump on everyone.

Crypto markets have erased an average of $8.8 billion per day for 261 days straight
Crypto is a scam.
Get that through your heads.

I bought my car with winnings I acquired from speculating on crypto. So I'm just as aware as anybody that crypto has its use cases.

But most of crypto's uses are not good uses.

And just because a particular scheme has uses, that doesn't mean it's not a scam.

Lots of people go to carnivals and play the games, with the presumptive likelihood that they're rigged. Lots of people go to Vegas and wager their money knowing full well that all the games are engineered to strongly favor the house. And some of those people actually win.

Even some of Charles Ponzi's and Bernie Madoff's customers were able to withdraw their investments along with the promised returns. That doesn't erase the fact that those were scams.

It's obvious by the way it's engineered, that cryptocurrency was purposefully engineered as a scam to enrich its inventors and early adopters at the expense of "Greater Fools" who have come later.

For most of these instruments, calling them a "currency" is a pretense. Nearly all the transactions are speculative or criminal.
.

 

[psionl0]

Bitcoin is down 53% from its high of $126,273. That's $67,243 gone per coin. $2 trillion wiped out across crypto.

This is not news. Everybody knows (or should know) that bitcoin's price is volatile and can experience severe and sustained price falls. There have been several such periods in bitcoin's history.

Donald said America would be the "crypto capital of the world."
He ran a pump-and-dump on everyone.

Of course he did. Did anybody think he wouldn't?

Crypto is a scam.
Get that through your heads.

Of course, you will make the same erroneous assumption that if a scam is run that involves a product then the product itself is a scam.

 

[dirtywick]

Strategy Inc | Rosen Law

Rosen Law Firm, a global investor rights law firm, announces an investigation of potential securities claims on behalf of shareholders of Strategy Inc (NASDAQ:…

rosenlegal.com

first class action lawsuit against strategy

 

[dirtywick]

Of course he did. Did anybody think he wouldn't?

yeah, the tens of thousands of people ignorant to crypto that he stole hundreds of millions of dollars from

 

[marting]

Strategy Inc | Rosen Law

Rosen Law Firm, a global investor rights law firm, announces an investigation of potential securities claims on behalf of shareholders of Strategy Inc (NASDAQ:…

rosenlegal.com

first class action lawsuit against strategy

So far it's just an "investigation." Looking forward to an actual filing.

 

[dirtywick]

i know enough about it to know whatever case they bring is going to be pretty strong. his defense is going to be it wasn't a scam because he was pretty open about how it operates exactly like a scam, but then they advertised their preferred stock like it was basically as safe as a bank account and it's currenly around a year later and it's completely collapsing with no apparent way out. that's pretty fraudy behavior imo

Why Saylor’s STRC isn’t really a money market or bank account

Speaking about STRC, Saylor said, "Everybody in the world would love to have a high yield bank account that yielded 10%."

protos.com