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2012-08-29 17:29:58.00536+00 by Dan Lyke 3 comments

You know the cool thing about technology and the Internet? We get to test out all sorts of political and economic theories. Today's lesson is about government regulation of securities and currencies:

Suspected multi-million dollar Bitcoin pyramid scheme shuts down, investors revolt, "Pirateat40" Makes Off $5.6M USD in BitCoins From Pyramid Scheme

Via /..

(To be fair, regulation doesn't stop Ponzi schemes, but it can slow 'em down a bit...)

[ related topics: Politics moron Current Events Beer Net Culture Currency Economics ]

comments in descending chronological order (reverse):

#Comment Re: made: 2012-08-30 18:26:35.568279+00 by: Dan Lyke

So you're thinking that Mariam Abacha, widow of general Sanni Abacha, is, perhaps, a more credible person to trust than "Pirateat40"?

I suspect that the people playing with bitcoins have largely sunk the costs of generating them into externalities and everything is play money, which is why "7% with no intervention" didn't trigger every possible warning.

But it could also just be that bitcoin users are either naive or scamsters. Period.

#Comment Re: made: 2012-08-30 10:04:01.743471+00 by: petronius

I particularly liked the line that many investors were imagining scenarios where their bitcoins would reappear. Since BTCs are virtual monies, any appearance would be miraculous.

#Comment Re: made: 2012-08-30 01:44:22.804046+00 by: andylyke

Excuse me, but who would "invest" with someone identifying him/herself as "pirate at 40"? It seems to me that some folks ask for it in strident voice.