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manfredz | 4 years ago

It's the transaction fees that get distributed to all the other coin holders that makes it a pyramid or MLM scheme.

In the case of Bitcoin, originally, every Bitcoin holder would also be able to mine with their own computer and receive transaction fees. This has since changed, so now it's only the miners with specific equipment that benefit from the transaction fees.

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kobalsky|4 years ago

> It's the transaction fees that get distributed to all the other coin holders that makes it a pyramid or MLM scheme.

This is embarrasing. I will give you more info in case you are geniunely wrong and not playing dumb.

This is the last mined BTC block: https://www.blockchain.com/btc/block/00000000000000000001d85...

The fees collected for transactions is 0.15 BTC and the mining reward is 6.25 BTC. Mining rewards will continue declining and some day the only value of mining will be those fees, but until now they have been largely irrelevant to the point that some miners just mined empty block because it was simpler from a technical standpoint, and it was becoming a problem because it just generated congestion in the network: https://bitcoinmagazine.com/business/why-do-some-bitcoin-min...

So you may think it's a scam for other reasons, but your point about mining fees being the driving of the pyramid, ponzi or whatever, is completely wrong.