So on Bill Maher last night, this happened. The link takes you to a snippet video (on YouTube) of Bill’s guest saying what I’ve thought (known) about crypto currencies since their inception in roughly 2009 – they are a “kind” of “Ponzi scheme“. I say “kind of” because it’s not exactly a ponzi scheme but for lay people it’s the best way to describe what is happening with these “currencies”.
First, labeling these “things” (there not actually things, they are imaginary “securities“) as a currency is a bold face lie, these things are actually just “stocks” in an algorithm that are either mined via the rules of the algorithm or bought from an exchange and the records of all “owners” are recorded on a blockchain. (That isn’t really anonymous.)
Second, technically they should be labeled “securities” but they should be also marked as “junk status” securities. So, you’ve been warned.