Bitcoin Forum

The basic underlying idea behind the use and creation of cryptocurrency is to present financial freedom to everybody no matter where you find yourself in this world. But the volatile nature of these digital currencies got me thinking, what if the whole idea of blockchain and cryptocurrency is just one giant Ponzi Scheme?  Within a short period of time, there have been about thousands of cryptocurrencies created. Majority of these digital currencies are either trying to solve problems of a particular cryptocurrency by presenting solutions they think can help improve financial freedom. This usually gets me wondering and thinking. If you don't agree with me on this, please share your thoughts... ;D ;D ;D

being volatile doesn't mean a Ponzi scheme i suggest reading the definition of it first: https://en.wikipedia.org/wiki/Ponzi_scheme

as for thousands of shitcoins that are created in short periods of time, that still doesn't mean Ponzi scheme. it is just creation of useless junk that they sell people and they buy it because they hope to make profit. it is a form of scam but it still doesn't match the Ponzi scheme definition.

What if you read some articles if what is the definition cryptocurrency and a Ponzi.

With that definition, you can then know if crypto is a Ponzi

• Crypto never promises that anyone can get $$$$ in 1 month or particular time once you start investing
  
• There's no referral thing that will give someone an xxx commision once he/she was invited and start earning crypto.

Let's put things into perspective:

What is a Ponzi Scheme

https://www.investopedia.com/terms/p/ponzischeme.asp

As you can see in the definition of Ponzi, there's some sort of centralization, as opposed to Bitcoin wherein this is a free market. Also, there is a promise of high rates in ponzi, wherein Bitcoin doesn't promised anything and we all know that their is a big risk. Also, Bitcoin supply is limited as compare to Ponzi wherein if there's still people investing below then the money flow will continue.

Thanks anyway for the link that explains ponzi scheme, I actually understand what it means.  People have lost a lot of money investing in cryptocurrency as a result of the changes in prices. Anyway I'm just spreading my thoughts to also get people to share theirs.

a ponzi is where some guy has a big bank account. everyone puts lots of money in. but the guy only gives out pennies on the dollar as interest/dividends to keep people from asking for all their funds back.

crypto is not a big moneypot with a mr ponzi
crypto is like buying a asset. like a car. you own the asset and you decide when you buy/sell it.
you dont earn interest/dividends from it. you dont have any guys holding value on your behalf.

the asset just has a price depending on what price people want to buy and sell it for. which is why its volatile

There are crypto's that really aimed to become giant ponzi scheme, remember coins like bitconnect and other same projects that hidden themselves in form of crypto so people will not notice what they really are.

You misunderstood the idea of blockchain and even thought about it as a big ponzi scheme. Crypto's are meant to be our alternative option for money transfers but as time goes mature the usage of it becomes different.

By the way, you should understand what's the meaning of ponzi scheme and compare it to crypto.

https://www.investopedia.com/terms/p/ponzischeme.asp

If a coin devs promises you to give you big return after investing to their coin, that's the ponzi.

One of the most used arguments that people use to claim why bitcoin is a ponzi scheme, is that bitcoin is a ponzi because new money coming in sort of makes money for the people who bought in first; whereas if there's no new money coming in, the people who bought in first can dump on the new money. I find this argument stupid as hell. Bitcoin's price is based on supply and demand, and so is gold. If gold was to rise in price, and people would buy gold to hopefully profit from it, does it make gold a ponzi scheme? I don't think so.

not !! Digital currency is a real form of digitizing the financial system that exists at this time. to support the level of progress of the time it is very necessary to be able to make flexibility in conducting various financial transactions. Digital currency is something that is needed, with the security, flexibility and convenience that is obtained, the digital currency is something that must be implemented from now on !!

Ponzi schemes does not work on Supply and Demand. A typical Ponzi scheme use very aggressive incentive marketing strategies, where a specific profit is promised every month to entice people to invest in it. Bitcoin does not guarantee and specific return on your investment and nobody are using aggressive marketing to influence people to buy any bitcoins.

Bitcoin is all about choice and people are told very early on that it is a high risk investment. In most Ponzi schemes, people get monthly returns on their investments and then it suddenly stops when the Ponzi operator takes the money and run.  ::)

A deeper Knowledge of Ponzi schemes would show you how far from it Bitcoin is. A Ponzi scheme creates a network where people constantly put money into it the system to support expansion and this funds are always at the disposal of the master mind.

Bitcoin connects enthusiasts and wants to create a peer to peer network. But there is no heirarchy where funds are drawn from bottom to top

Why you compare crypto with Ponzi scheme? Crypto-currency doesn't promised any fixed return. Ponzi Scheme are promising fixed return and that's why it's called Ponzi scheme. There nothing fixed that you will loss or gain on crypto trading. Although there is money rotation on trading but it's not called ponzi due to there is no any return policy. It's just your own responsibility. So ponzi scheme totally different from crypto-currency. It's true that crypto-currency using for Ponzi scheme, like Bitconnect scam.

I don't think blockchain technology is a ponzi scam but I think the promoters and projects developers (with the idea of using icos to raise funds from the market)  that makes it to look like a ponzi scam.  Blockchain technology is still at the early stages and we Should not expect it to be a perfect market or close to perfection like others market like stock and forex that are subject to some regulations.

Cryptocurrency can never be classified as a ponzi by the very definition of the term. But I think I understand what you mean. You must be referring to the many existing (and more can be coming if we will not stop this insanity) SHITCOINS that affected the marketplace since I can remember. Scammers find the best platform which they can utilize to create wealth almost out of nothing...selling their coins or tokens and when they get filled they just jump into an island away from the scrutiny of the law and enjoy their hoard...all leaving the investor or the token buyers holding empty bags. Ponzi is of a scam but not all scams are ponzi.

I don't think so, there's a lot of difference between crypto and ponzi scheme. Cryptocurrency itselt cannot be classified as Ponzi Scheme, maybe the people who are using the name of crypto for scamming can be the Ponzi Scheme.

because many people discovered the gold mine. Many of these altcoins do not even have use, their creators just wanted to be rich in the easiest way in the world. Look at altcoin section, see how many senseless projects are created every week.

I see many youtube channels encouraging people to buy altcoin that has a lot of potential. When I investigate about the altcoin that the youtube guy says it has potential, I can not even believe it's the same altcoin because in my vision it's just a project meaningless. But there are many people who invest and lose money.

I saw Lisk go from 20,000 satoshi to 50,000 satoshi, then start the rebrand story and the price rose to 90,000 to 167,000 satoshi and when finally come the rebrand the price increased to 300,000 satoshi and I said to my friend: "sell all your lisk immediately because the price will drop ". and the price of lisk fell as I had anticipated.

This market is not ponzi scheme, but is highly volatile and the price rises only by manipulation and pump and dump schemes


Most of these projects are just an illusion, they are only on the internet and not in real life

Perhaps some (well, most) of the cryptocurrencies sprouting nowadays are just money-grab opportunities for the devs and their teams. It has slowly turned into Ponzi scheme for these crypto but bitcoin still hasn't lost its identity yet, as it can still be used into a lot of transactions and still carry a significant value that is enough to keep it as an asset for most people. Good thing though that the governments are intervening and are proposing several types of regulations to address this concern, and so far it has been effective especially on places wherein fake ICOs plagued the markets already.

I don't agree with your assertion of cryptocurrency and blockchain being a big ponzi scheme due to the fact that a ponzi is just a scheme that promise certain amount of return on members investment but cryptocurrency on the other hand always state it own operations ideology which is being volatile in price.

I would say cryptocurrency is like Stock , ofcourse there is cryptocurrencies that don't pay dividents or share profits from company sucess . But atleast with Crypto you can buy stuff , sell stuff and so on .
And there is tokens/coins with masternodes that pays you for help to run chain :) If at the end it will turn out as Ponzi then it will be the biggest one in history , but i don't believe so it will ever happen :)

There is a definition of what ponzi scheme is, and cryptocurrencies just don't fall under it even if you try to put them there. For starters, in any Ponzi there's hierarchy. There are people who created it, early adopters and those who got involved by other adopters. While there is a dev team and buyers of tokens, when you as a holder of crypto A tell your friends about it, you don't profit from it at all. So what if your friend is now also holding crypto A? The price can go up or down, and it won't matter who invited whom when it comes to profits and losses. Moreover, most of normal cryptos are distributed in a very decentralized way, while in the Ponzi the main people have access to enough product to ensure control.

People should first understand the concept of ponzi scheme before they start accusing bitcoin/cryptocurrency a ponzie scheme. In ponzi, you will have to invest on the scheme will real money. That is not the case of crypto currency. No one will be forcing you to invest on it. You can earn through mining the coins. And how would actually the cryptocurrency work if it was actually a ponzi scheme?

Majority of investments are volatile. So can we call it all a "ponzi scheme"?

The big difference is just that they are regulated by governments or they had their approval. Bitcoin and other crypto currencies is still not. That is why its price keeps on fluctuating too much. But it doesn't mean it is a ponzi scheme.
Question is, do you want it to be controlled by your government or just let it be as how it was created? You are free here. You risk it all and then maybe you could find yourself in the right path when adoption starts booming.

Most of the money in the market is concentrated in a few coins that are true attempts to bring freedom to people but most of the coins created in the market are scams and some of them are literally ponzi schemes paying previous investors with the money of new investors so you are not that wrong but at least the most powerful projects in the market seem to be honest about their pursuit of a new coin free of the control of governments and central banks.

So as long as you avoid most of the coins that are being recently created and only concentrate on the coins which the highest market caps you should be safe from all kind of scammers.

I don't see the relationship between volatility and ponzi. With ponzi, you get earn from inviting people to invest in a scheme and a portion of that money invested will be given to you as a reward. Earnings is purely from pay-in from new investors. I don't see that in Bitcoin or Cryptocurrency. What I know is Cryptocurrency is used to run a  Ponzi scheme, not Cryptocurrency is the ponzi scheme.

This is a theory of many crypto nay-sayers is that we will all lose our total investment in the long run.
Not fair to assume this, if you ask me, since there are already people who have turned their investment into returns of profit.

I think the fact that there are people who have already turned their investments into returns of profit does not necessarily support the idea that cryptocurrency is a good investment in the long run.

In ponzi schemes, the people who invested in the beginning also get to turn their investments into huge returns of profit, but they are still fraudulent schemes in the long run.

That said, crypto is not a ponzi scheme, these are the characteristics of a ponzi scheme (https://www.investopedia.com/terms/p/ponzischeme.asp):

A guaranteed promise of high returns with little risk
Consistent flow of returns regardless of market conditions
Investments that have not been registered with the Securities and Exchange Commission (SEC)
Investment strategies that are a secret or described as too complex
Clients not allowed to view official paperwork for their investment
Clients facing difficulties removing their money

Evidently, the characteristics do not fit crypto at all.

A five year old account is asking this question?

Sold account much?

Plenty of them are pyramid schemes. It has enabled ponzi schemes in ways that weren't possible or easy before.

As for the entire concept, I think it's possible that all the thousands of companies and millions of people might not be here if it were.

Did you even read what the post well? if you did then i think you don't understand what I was telling to say. Please read to understand first before saying anything. I get the impression that you didn't read my post very well. 

This is quiet an interesting assumption you have here but I don't think the idea of cryptocurrency is a ponzi scheme. This is actually based on a technology which provides a decentralized environment where everybody has the opportunity to decide on how to provide services online. To add to this, cryptocurrency and blockchain works like the banks but with this system, it provides an environment where people have the financial freedom to send or receive any amount of funds easier and faster with lesser fees as compared to that of banks. This your post deserve to be merited.  ;D ;D ;D

Ponzi schemes were the one that were created to cheat the people. Bitcoin is entirely different, it is innovated for the betterment of the human. Due to some negative usage it got termed as a ponzi scheme. In specific as each and everything related to bitcoin happens through internet, some used it a source to cheat other. This is how it got mentioned as ponzi. One who understands it better as well has benefited out of it will never describe it a ponzi.

I don't think bitcoin is a Ponzi scheme. In this world,a huge number of smart people, and for 10 years of cryptocurrency existence, someone would have realized that bitcoin is a big fraud and should not be trusted. But we see that it continues to develop, improve and only gain more trust.

There is no correlation between blockchain technology and ponzi scheme the fact that many cryptocurrencies are highly volatile in  nature in term of their prices does not necessarily mean that they are scams and fraudulent this had been  one of the greatest fears of would be investors of crypto having had the bad experience of investing in MMM fraudulent scheme.

I dont think cryptocurrency is Big Ponzi Scheme. Its totally different because its open and secure market. Cryptocurrency is technology and already proven technology. Many reputable company and banks will adopt this technology and i think crypto will growing and survive in this bear market

Yeah that's what outsiders believe, they will strongly believe in the government's paid media, that bitcoin is just a scam and ponzi
investment, that is detrimental to you and many fools people who believe it

Yeah, 10years is enough for me to say that this is not a ponzi scheme and bitcoin is here to deliver a good service. Volatility is just only the difference but it doen’t mean its a ponzi scheme, you can know it if you’ve done enough study about it. Invest now, and you will experience good things soon.

I don't think that cryptocurrency is a Ponzi Scheme because we are still in the younger than the fiat itself and I am sure that there are a lot of things we need to do to develop or fix in everywhere so it can works properly for every people.

I am sure that digital fiat is an evolve from the traditional fiat which will exist in the future. Look around us, and now we can pay something with a debit/credit card, we can send the balance from one account to another account. Maybe if you already use a payment system which can load our money into our android phone and we can pay using our balance from the phone, that is a new evolution of the fiat itself. And this will happen too with the cryptocurrency in the future.

You should be thinking first about the definitive means of Ponzi scheme and cryptocurrencies, and you also need to wonder about how cryptocurrencies have a huge benefit for us Instead of posting nonsense backed by the uneducated minds, try to get your brain literate first.

Isn't a big Ponzi Scheme, is just a big speculation business, that's all. It would be Ponzi only if one man run at the end with the money, but that can't happen to bitcoin, It's nature doesn't allow it. If you want to have a better understanding about ponzi schemes, better take a look to https://en.wikipedia.org/wiki/Ponzi_scheme

Crypto (Bitcoin and good alts) is not a ponzi scheme. Even if price dropped the entire 2018, I continue to hold my crypto, no matter what.

If lose is the answer, then let it be. I still believe crypto is the future.

But we cant guarantee witch coin is the next big thing/facebook/google etc

Honestly, crypto currency can be used not as an investment place but can be used as a transaction tool or as a money transfer tool.

I first heard about the ponzi schame, which always occurred at the place of investment that was carried out by one party and offered to individuals to be a chain, but I did not understand why OP defined crypto currency as a ponzi schame place only because of price volatility.

You doubt you can overcome ponzi schame by reading what a Ponzi Schame is and looking for what Ponzi Schame is like. Every information that you read should be able to digest first, first understand the so as later when you say an opinion is not wrong.

well, if that is your opinion then why are you still following the signature campaign? isn't that contrary to what you think.
I don't think this is as simple as you described

      I do not think cryptocurrency can be considered a ponzi scheme. The ponzi scheme is based on a certain centralization, while the crypto market is totally decentralized. If coin prices are very fluctuating during this period, it does not mean it has anything to do with the ponzi scheme. Simply, investors are expecting a higher decline in currency prices.

Its been years now that the bitcoin has been called a ponzi scheme even the fact that bitcoin has successfully gain trust by many customers and investors , and at the end of those negative assumption of others for cryptocurrency, but it stand strong and remain the thing to join and invest and that is cryptocurrency.

There are couple of things the OP doesn't take into account. First of all, blockchain and cryptocurrencies are different. Blockchain is the technology while cryptocurrencies are products build on top of blockchain technology.

Blockchain is a great decentralized system that uses many computers resources and there is no central decision making. I believe this technology has bright future ahead of it.

There's a reason cryptocurrencies aren't widely adopted. Currently around 6-7M people in the whole world use crypto currencies to purchase goods or services. That's too little market adoption so price can be stable. Therefor, currencies value fluctuates every single day which makes them quite risky. Transaction time is also very slow. Bitcoin can process around 5-6 transactions per second, Etherium - around 20 and Visa - 1700. Imagine the whole world start using bitcoin tomorrow. Everything will collapse in a day.

Ponzi has a slightly different definition.
Pyramid scheme is what you're referring to.
And crypto is not necessarily a pyramid scheme, the "store of value" narrative is pyramid scheme 101 - and people who still use it are advertising a pyramid for their own enrichment.
But as long as you work towards enhancing the utility of crypto (and there's lots of potential) its price will be based on actual quantifiable metrics - and not speculation. When we reach this stage, the "pyramid" label will be officially denied.

That was only a what if but it's not. Yes! Crypto or btc to be more specific can be used in Ponzi schemes but it doesn't mean that the creation of it was intended for those matter or any fraudulent activity in the first place. Of course it was for the good of us, however there are just people who use it for satisfying their greed which is very sad to know.
I see your point. Some of ICOs are legit, some are scam; some have a nice platform, some are just for the sake of pumping and dumping. It's now up to you on how will you look to those coins and whether you will trust them or not.

Many project ponzy always use bitcoin as their platform and make all of investor are interested for investing at Ponzi project, we have stop and give knowledge to many people for stopping make investment at Ponzi project and use bitcoin as their platform name, we have know bitcoin never joined with ponzi and scheme project, always doing right when you make investment at bitcoin or altcoin how ever your situation always checked before you make investing.

I don't think how the cryptocurrency works is close to a one big ponzi scheme. Both works differently and you earn money in a different way. And cryptocurrency is a proven source of money. While ponzi schemes are manage by huge scammers.

do you think just because BTC so volatile and you can say bitcoin is another one ponzi scheme..? . there are times when you have to get through the storm so that later you get used to it . if you are investor you must believe what you invest , but if you trader you just need to make a analysis like Fundamental, Technikal also sentiment analysis

Cryptocurrency being volatile doesn't mean that it is a one giant ponzi scheme already. We all know that cryptocurrency has been used by only a few people in the world not like the current monetary system we are using right now which is fiat that is not that volatile compare to crypto. Yeah we all know that it is easy to create an altcoin at this times. Some or should I say most of them are either a scam coin or a project which is not developed because of some reasons like lack of funds.

I never think about that, and everyone maybe have same opinion too. We know what you called thousands of cryptocurrencies created it is because each dev have their reason behind their project. But we can't generalize it as crypto is one big ponzi scheme.

Some of them say that bitcoin is only profitable for old users, but we reject it. I as a new user also benefited and it's true what you
say, Bitcoin is decentralitation, that system is far different from the ponzi scheme

Not all cryptocurrency has a Ponzi scheme. like cryptocurrency or altcoin trading on an exchange that only relies on buy support and sells support. all prices, charts, and volumes are clearly visible. Otherwise, if crypto is promised to rise to a price of several dollars, it is like all prices have been arranged by one party and I advise never buy coins that have a Ponzi scheme that is why the crypto image is bad due to the Ponzi scheme applied to cryptocurrency. Basically, prices rise up according to the amount of supply and demand.

this has been discussed many times and the answer is still no  .  NO crypto is not a ponzi  .  people only consider it because they see that the price of cryptos are too damn high and they think it will collapse in an instant after they invest thru it and they were actually right . the price did collapse after an increase but not because cryptos are really a ponzi  .  the collapse happened because people also sell for profit  and its normal for this kind of market  . the digital aspect and the anonimity feature is also the reason on why people think cryptos are ponzi's  .

Yes many projects that are related to cryptocurrency are scam and could be compared to a Ponzi scheme but not all crypto are scam. THere are few crypto also that are also now operating like in the exchanges, mining industry and other concrete projects where the money of the investors was being utilized and  able to earn profit on it.

Technically Bitcoin is not a ponzi scheme any more than gold is a ponzi scheme. Participants are buying and selling Bitcoin in a free market, by agreeing on the price. That's how all transactions are made in all markets. Yes, many people have called Bitcoin a ponzi scheme. But this either is because they don't know what Bitcoin is, or they're implying that people are putting their money in to something that has no real value. But what defines the real value of something? Value is subjective.

Those other cryptocurrencies are about people who didn't buy Bitcoin when it was cheap and are trying to find a very cheap one now that will greatly appreciate.

I agree.Although we cannot deny that there are still some scams happening in the crypto world,but i would not conclude that the whole crypto world was just a ponzi scheme.I think many people have proven it already.Even myself have tested it because i am always gaining profits in this crypto world so i really never think that in the end,this will turn out into a ponzi scheme.

See let all you online today don't make u believe Cryptocurrency is a Ponzi scheme, I believe you have got ideas the beginning of Cryptocurrency and till date it's still standing strong in other hands why people will think it's a Ponzi is because they definitely don't understand how it works.

I like what you said, the believe is yet to be notified that bitcoin as a whole has really made many people rich today. I am not exemptional I have gain alot in Cryptocurrency and more to be gain. Let's not just keep believing crypto is a Ponzi.

I am very sure that your main reason for thinking that cryptocurency is a ponzi scheme as to do with the fluctuation in its prices. Ponzi scheme normally does not have relevant key mains and principles in terms of its way of operation. Blockchain is the tool and cryptocurrency is just a digital currency that allows the user using the blockchain to operate and provide services with this tool. The changes in the price of crypto is as a result of the decentralized nature of the blockchain technology. people decide on the price they want to sell their crypto coin, and affects the value of the coin. Cryptocurrency is no ponzi scheme.

I think bitcoin is different with ponzi scheme. Bitcoin dont have a CEO or team to collect money in market and we know that bitcoin is decentralized cryptocurrency. I am believe if bitcoin is a ponzi scheme, bitcoin can not survive for 10 years.

bitcoin is not profitable only for old users you know, but even for new users. anyone can get big profit in bitcoin. different from the
ponzi scheme which is profitable only for old players, in Bitcoin anyone can profit depending on your skills

one of the traits of ponzi schemes are that they do not last for long, in most cases they only last for a year or two but in the crypto space we have been rocking and rolling for more than a decade and there is still no sign of anyone complaining about anything or what  has or has not eloped with his or her resources. now that can only be blockchain technology.

The answer is a big NO. Bitcoin is not a Ponzi scheme although the price is volatile. But I don't think with the other coins because they could be a big Ponzi :D
Let's get positive thinking about bitcoin because so far, bitcoin helps us to gain benefits and we can make money from bitcoin and altcoin, so we don't have to say bitcoin is a Ponzi scheme.

Exactly, if you know how to invest, how to trade or even how to gamble you can earn good money from bitcoin. Even if you do nothing and just hold the bitcoins and altcoins, you can get profit too.
Those who say that bitcoin is a ponzi scheme ,actually know nothing about it.

I have been in the cryptocurrency world for too long and studied bitcoin too well to understand that it is not a fraud. Therefore, I do not believe in such statements. People say this either because of skepticism or despair.

cryptocurrency is not a ponzi scheme. It is a means of investing in an idea which one believes has great potential to grow. for ponzi you need referrals and the more referrals you get, the higher your rank and money you get but for cryptocurrency, you are presented with an idea which seeks to give a solution to an already existing problem or you are given an opportunity to invest in an idea which is being introduced for the first time into the world and when this idea grows your investment also grows. Is like buying shares in a company.

Cryptocurrency as a whole is not a Ponzi scheme, Bitcoin is firstly a legitimate cryptocurrency as well as other alternatives which have many users and are in good standings on the market. However, there are many alternative cryptocurrencies on the market and there are far too many of them which are ponzi schemes. Creators of those coins saw Bitcoins success and thought that they can get a lot of money if they get people to invest in their coin which may seem legit, but they are far from that.

Your assumptions are quite ridiculous to think cryptocurrency is a ponzi scheme.  I think you should spend some time researching and reading about blockchain  technology, this will help you understand some basic features of this technology. The volatile nature of cryptocurrencies is as a result of the decentralized nature of blockchain technology, giving users the opportunity to set their own price at which they want to trade their coin. This is the main cause of the fluctuations in the market value of a particular crypto coin. Cryptocurrency is never a ponzi scheme.  

it is very clear that the ponzi system is very different from bitcoin. you're right anyone can get profit without exception. it's just that you need knowledge and skills to be able to profit. bitcoin is not profitable only for a few individuals. but provide opportunities for all investors

You should understand first what is a ponzi scheme and how it actually operates

crypto is definitely not a ponzi if has a transparent and auditable blockchain

but of course we had stuff like bitconnect in thee past,  so research and understanding is needed

scammers create these dodgy ponzi schemes to take advantage of noobs

Though series of definitions concerning Ponzi Scheme has already been defined but i will like to chip in this; decentralization to my understanding doesn't permit Ponzi Scheme unlike the centralization which is most popular among the traditional Scheme. Bitcoin is a volatile cryptocurrency and not Ponzi Sheme.   

Cryptocurrency is not and cannot be compared to a Ponzi scheme. Yes, there are Ponzi schemes using cryptocurrency but cryptocurrency itself is not a Ponzi. The concept of cryptocurrency has a wide appeal that is why people are rushing to invest in it. Unfortunately, smart programmers have caught in on the freedom of the blockchain to create shitcoins, extorting money from people who have put their trust in cryptocurrency.

This has been tackled many, many times in the few years that has passed and it is completely false. There might be a lot of crypto and particularly icos that is a ponzi right from the starts but that's because scammers see it's an easy way to steal a lot of money. But the others like btc, eth and eos are here for improving the life of every people.

I disagree if you say that cryptocurrency is a ponzi scheme because now the fact is that people have proven 10 years of cryptocurrency right now. and still exist
but indeed there are some projects that aim at ponzi schemes and money games using bitcoin

There is a misunderstanding that is really happening in our society nowadays. Because of the false information that keep spreading, there are people who thinks that cryptocurrencies is a big ponzi scheme. They do not understand how volatile is it and it is the reason why they keep saying it is a scam.

in fact, all have a value of 0 (zero), and all have value because they are valued. Ponzi schemes are systems, and Bitcoin is technology. Bitcoin will not have value, if not valued. Bitcoin is only a container for storing or storing fiat. so there is no ponzi system in it. if the ponzi has a leader / boss. bitcoin doesn't have that. all bitcoin users are bosses. private owner. without downline or upline.

The ones that run Ponzi schemes most of the time promise high rates of return in a short amount of time, bitcoin does not do that because there is not a central figure that can make those promises to begin with, so bitcoin is just being traded back and forth in a free market in which people need to assume the responsibility of their actions, if you invest or trade in this market and you lose it is easy to complain about the market being a ponzi scheme but that does not make it so.

So wee need to see those complains by what they really are, people that are just upset they lost money in the market and are trying to blame someone else for their mistakes.

Some big ponzi operators abused the real use of cryptocurrency. Yes, it should be solving financial problems, transactions and waiting time which has been done on a purpose but with those features, these scammers took advantage of it and ride the popularity of crypto. I think they really are everywhere and as long as there's money flowing with that market, they'll scam people. But the idea of got you thinking that cryptocurrency is a big ponzi scheme? don't literally think of that. Some projects are real ponzi but don't generalize it.

Bitcoin price rising because market mechanism or demand and supply. People speculate on bitcoin price and gain from the price speculation. I dont think bitcoin is ponzi scheme because there is no pyramid scheme or central figure can control bitcoin

Cryptocurrency is not big one ponzi scheme and never become ponzi forever, just mistake by doing some people make bitcoin become ponzi because always use bitcoin or altcoin name for their project, many project put bitcoin as their investment and make bad reputation of bitcoin.

The term cryptocurrency itself seems to be something different for the common people. Once they begin to explore initially they'll get to know all about the negative things that has happened using bitcoin. This itself enough, and some out of curiosity know about the money making through cryptocurrencies. Without proper knowledge will pour the hard earned money expecting quick return. For their bad luck market goes upside down letting them loss, in most cases this is the reason upon which people term it a scam.

Yes.I agree.Because of the continuous popularity of bitcoin,some foolish people made bitcoin an issue as a big ponzi scheme and have involved it numerous times indirectly.But still this will not prevail people from adopting cryptocurrency particularly bitcoin in the future.Bitcoin has made already a good foundation and it will never be ruined easily by just scammers around.

Mostly we can see startups creating shittokens and easily escaping from the markets once the capitilisation is reached. Not we can doubt all of the cryptocurrencies but most of them including bitcoins, etherum, ripple, etc are been proven a better source of investment for long terms and also is being spreading the world much rapidly.

In my understanding, good example for ponzi will be some HYIP program when owner paying old members with the money from new members and no services offered.
Bitcoin exist on the market and its price depends on supply and demand from real people.
So, I d on't see any ponzi here, really.

two words themselves differ from one another in meaning. Cryptocurrencies are currencies, which means money while ponzi schemes are schemes, and schemers use cryptocurrency as a front for scheming or fooling people. This is a big wrong notion people have about cryptocurrency, the same also as they always say cryptocurrency is a scam, and simply because they lack knowledge about the two.

No, I don't think running a ponzi scheme needs a centralized company or organization to do that, and besides there is an underlying technology behind cryptocurrency on Ponzi scheme you will only payout when a new guy invest but i don't see that in cryptocurrency.

Lol...it's been over decades now so you tell whether it is a ponzi scheme or not. Cryptocurrencies have been with us for a decade now and it is still thriving. In fact, last year saw great adoption of cryptocurrencies by most countries, institutions and i believe that that cryptocurrencies would become a globally accepted currency in the near future.

Peoples are free to call bitcoin is ponzi scheme and if they believe so, they should leave bitcoin in the first place.
But bitcoin actually have a real usage in our world, as a currency. Although bitcoin is not a stable currency,
it has been used as a payment currency since 2009. So for me, it is not a ponzi or something like that.

Thats why investing in cryptocurrency is risky. You have to know that there are many projects and coins that may be far below the standard, as you say they can just scam after getting their target, there are many outstanding ponzi businesses, but it doesn't mean crypto is a ponzi scheme. You have to be smarter in choosing investment

That happens on many investment programs which using cryptocurrency as deposit and withdraw. People attract to deposit in that investment because they want to make money by investing in the websites. But the truth is they are difficult to get the profit for what they invest because before they can get the profit, the website is gone and this makes them regret. That is why many people relating cryptocurrency with the investment programs because of the website using cryptocurrency as the payment method.

Well, crypto currency overall is not a ponzi or scam scheme, however they are few coins ICO / project which are made only to scam people and because of these people believe that overall crypto market is a scam.




Well, there are many hyip programs in the market and all of them run on crypto, so again this is bringing bad name to crypto industry.

You can tell them the price of bitcoin only caused by supply and demand only, there is no party who arranged to make bitcoin price fall and to make bitcoin price up. Ponzi scheme always identical with one party who managed an investment place, but as you know there is no party who managed cryptocurrency. An important thing before make statement about one 'things' then you/someone must know what is the one 'thing' it is, as someone told before you can check this link https://en.wikipedia.org/wiki/Ponzi_scheme to know the ponzi scheme itself.

LOl that’s impossible to happen that all the people will think cryptocurrency  of being Ponzi

Just look around Bitcointalk.org and you will find millions of people and getting higher as time passes by

Stop this thinking your not helping mate

So many shitcoins being created does not mean that even the genuine projects like bitcoin is also at fault. Coins like BTC and ETH will grow strong and reach new heights this year in my opinion. You just need to be patient with the growth. The huge increase in prices to $20000 levels resulted in such a drastic decrease in prices that it is taking so much time to recover back now.

Bitcoin has been called as ponzi scheme in countless times since it was created, but i think there is no ponzi can survive for long time like bitcoin.
If crypto was a ponzi scheme, it would be dead already because no one would like to using it anymore.
Cryptocurrency has a real function in our world, as a digital currency.

Opinions that are wrong if there is someone who thinks crypto is a ponzi scheme, because crypto is a trade where the crypto owner plunges on his own and gains or losses is also due to his own decision.
Whereas a ponzi scheme is a business where members who register behind will support the members in front of them. So, when there are no new members it can be ascertained that the business will die, and cause a large loss for members who do not receive returns on capital and profits.

It depends on which cryptocurrency you're referring to. Bitcoin, as it has been discussed already hundreds of times,  it cannot be a ponzi scheme, as nobody is running with your btc if you hold them securely.

As for other altcoins,  it depends. Usually projects that promise you earning of more than 3-4% per day are definitely ponzi. They all become sooner or later scams.

And do we need to give them the attention they wanted? Do they have that proof that Bitcoin is a Ponzi scheme? If Bitcoin is a Ponzi Scheme I can say that the mastermind of all of this is so patient waiting for 10 years to do it. Also, if Bitcoin is one, then I guess it should be done when the time the price is at $20K. They are all talk but they did not know what Bitcoin really is.

As people thinking of it but they can't prove cause they are totally wrong and away from the reality. Those people who are thinking crypto as a Ponzi scheme, definitely they never want change and less fortunate. Bitcoin won't surely survive for this long if it is all just fake and can anyone say something against crypto.

Agreed, people term it ponzi through the negative news they got from different sources. Here very few will understand the underlying technology and make use of it. As bitcoin is gaining more popularity it is being used by scammers as a way to scam and trap the common people who are new to the cryptocurrency. Trust in it and have patience to experience the outcome.

I agree with you on this an to add to describe ponzi scheme.
The organisers urges you to get more people involved in something you yourself have no control of.
Most ponzi scheme establishment has either failed or folded.
Cryptocurrency is a technology, a block chain technology and is nothing like ponzi scheme

We cannot avoid that there are people spreading negative news about Bitcoin,maybe those people have negative experience in Cryptocurrency or they don't have enough knowledge about it that's why they want to make Bitcoin become worst by spreading fake information.

Ponzi scheme unlike Bitcoin/cryptocurrency dont last  long. The economic model is not sustainable...Bitcoin has proven to be sustainable.
Bitcoin is a currency by the way. It also has diverse purposes. It can be a currency, a share,  a product etc. There is no basis for comparison at all.

You can say the same thing about real estate and the stock market as well.  Governments continually pump out fiat money to pump up the markets, eventually everything will come crashing down and other assets like gold and bitcoin will become supreme.

Everything is ponzi
Gold real Estate Fiat.

the USA dollar is biggest ponzi..
USD was about to collapse... but

CRYPTO currency was created by all the world Secret services and bankers to save USD!



but things have value becouse People use them.


for each new born Baby the government Will print the money then the New born Baby Will be collateral to this printed paper.

this new printed paper Can Only exist When someone Will borrow this money.

money is created by double accounting or what Ever You like to call it.

IF something is out there and People keep buying it more and more... then the price of this Will increase.

but what goes Up it must Go Down.
for example:  real estate it use to be cheap Even in places like London Monaco, new York.
so prices keep raising coz more and more people Not just needed them but...  for example:

Tom Want house... he Think London is good place...  he buy it cheaper... Now he think that he Can make profit.. he try to sell it more expensive then he Go it.

Now the Next Person is alice She Will do the Same... so Next buyer Will try to do the Same...
so the loser Here Will be the few last guys.

coz they have left to sell nobody else with higher price, coz nobody got Not enough Money.

so Same thing with btc it is Ponzi Yes!
but until the price is cheap its time to buy btc.

just make sure you are not gona be the last buyer.

We should get used to it and we have seen hundreds of attacks towards bitcoin and crypto that this is indeed a scam but look at bitcoin it stood still for 10 years inspite on having those
fuds and false news towards it.
People who do call it a ponzi scheme are those who doesnt even know on whats blockchain technology.This isnt only a great tech but also gives out some earning opportunity.

Bitcoin was created by Goldman Sachs guys.
Financial freedom is just the nice label.
Free lunch does Not exist.
ejoy crypto freedom until you can.
few years and this freedom.
Cryptocurrency does all that AML/KYC NONSENSE.

Cryptocurrency is Good excuse for them Place more and more this AML/KYC nonsense.

but crypto is ponzi like everything else to do with Money and finances its all ponzi.
no matter how you describe it its ponzi and Yes im Fine with that as longes i Can make profit out of this

Cryptocurrency is not a ponzi scheme but it is a financial and investment revolution where from what we used to transact manually using bank services now we can send uanh anywhere with any amount simply by using a smartphone that is connected to the blockchain network, changes from what we used to invest only by using gold and stocks now we invest in coins / tokens where we can sell it at any time in any amount without the limitation of the amount and time.

I've been thinking the same direction lately. And I can't say it's pointless. You might be right and that's a pity if it's so.

Not yet, cryptocurrency is not big ponzi scheme because always use bitcoin as ponzi way to make investor lost much money, many time all of ponzi project use bitcoin as their payment and not part of bitcoin become ponzi project.

I think it's very unfair to say that. It's much more proper to say that crypto is getting abused by big ponzi scheme. It's a perfect tool or market for scammers because it's online and all about investments. We never realized that a lot of people could do it anonymously so that is why ponzis are very rampant.

If this is a big ponzi then for sure Japan is the first bigger victim as they allow the government to use bitcoin as adopted currency?

Do you think Tech counry like japan will risk their economic stand for this Ponzi?i dont think so may you better read alot first and understand things before you make this kind of thread mate because this is not the help crypto needs from us

Indeed, they are totally different and old investors of cryptocurrency do not depend in the new investors to be able to obtain profit and the term is not "payout" just like other ponzi scheme. So labeling cryptos to ponzi scheme is not appropriate and those people who think that way dont have idea of what they're talking about. Shitcoins are a different thing as well, yes many altcoins were created to solve real problem but its only few, numerous projects existing nowadays are just scam but its not ponzi.

The crypto currency is one of the best inventions that have been created this time.

So I advise you to read what is the difference between the crypto and the ponzi scheme. What is the meaning of bitcoin, virtual currency. That's why you know the true answer exactly what the crypto is and what it can contribute to our daily life.

When I read this news, I felt strange, cryptocurrency is a medium to facilitate our lives in helping financial transactions.
Why can someone say this as a ponzi. let's look and try to think back well.
Try to think positively and see what benefits we might be able to achieve.

Agreed, recently we had some news coming in that, the some governments are seeking bailout from this giant Bitcoin which is the most credible platform of investment on a long term. Bitcoin has not been any kind close to a ponzi scheme as speculated in some quarters but a realistic investment that has potentials to grow any country that embrace it existence either now or in the nearest future. 

Difference between bitcoin and ponzi is very clear to me.
in ponzi schemes there is no real product or services.
In ponzi we also have owner who use money from the new members in order to pay new members.
On the end, ponzi stop paying and admin run away with money.
Here, in bitcoin, we don't have owners or admins.
We enter market and buy something similar to stocks.
Price depend on supply and demand, so it's very clear and transparent.

Do you even know what a ponzi scheme is? If you knew,  you wouldn't ask this question,  no offense.

Bitcoin did not take you money,  did not promise you earning of 100x, 1000x ... It is listed on different exchanges and you are free to buy or sell. It is all about offer and demand (+high volatility), nothing more.

Overtime, individuals have had diverse opinions of cryptocurrency. On a personal note, i see the innovation and operation of cryptocurrency far different from ponzi scheme because a ponzi scheme's mode of operation is simply collecting from Mr. A and giving to Mr. B. Crypto on the other hand is a type of currency targeted towards making transactions.

The volatility of bitcoin doesn't define that it is a Ponzi Scheme. As you can read on the previous reply here where in they expand the meaning of Ponzi Scheme. This case shows a big difference to Bitcoin as Ponzi Scheme. Bitcoin don't have a product so in short it is not a kind of Ponzi Scheme and if it is then there's no bitcoin now.

It is wrong to say that because there had been thousands of cryptocurrency created in just a very small time that they are just creating it to be a ponzi scheme. I do believe that there are scams but it didn't break the real purpose of the cryptocurrency in general. Cryptocurrency was invented to be a utility and people think of it just the same until they knew that they could gain from it. And from this knowledge people created for themselves a volatile market of cryptocurrency. The unrealistic demands due to sudden rise of people holding coin for the purpose of gaining or riches and not for any utility as it should have served people created this volatile environment. Many are then complaining for loses which should not have been if people are wise enough to see that cryptocurrency is not just for holding and gaining but for the purpose so important to better served all of us. Should anybody use it for business then it could have limited volatility or may have had stabilized the cryptocurrency market. For me it's not a scheme, if it is then we are to be blamed because we made it looked likr one due to misusing it to earn money instead of its real utility. Money should have been an indirect goal instead of being primary.

We cannot consider that the cryptocurrencies are big ponzi scheme just because it has characteristics of volatile. It is the reason why we should have enough knowledge before we make investment, we cannot guarantee our returns if we do not have enough information about the market.

I would highly disagree with you because the word ponzi means giving high returns in short time. Bitcoin does have a high volatility but it doesn't necessarily mean that it is a ponzi.
The chances of loosing your investment is as equal as getting high returns. The large number of shitcoins lying around are just created by random people to either scam people or develop a non-potential product.
The idea behind bitcoin is huge and if it was a ponzi scheme it would have been ended long time ago.

It's a big NO !
Ponzi is a kind of bad investment where there is no new investor, it will collapse.
I seldom see ponzi able exist over 9 years , so yes, crypo is not a ponzi.

Crypto can survive because there are a lot of demand  !

Bitcoin isn't a ponzi conspire anything else than gold is a ponzi plot. Members are purchasing and moving Bitcoin in a free market, by conceding to the cost. That is the means by which all exchanges are made in all business sectors. Indeed, numerous individuals have called Bitcoin a ponzi plot.

In any case, this either is on the grounds that they don't have the foggiest idea what Bitcoin is, or they're suggesting that individuals are putting their cash in to something that has no genuine esteem.

I don't think your definitions are quite Right here because Ponzi scheme means something really different and Bitcoin or cryptocurrency doesn't seem to be falling in it . Being volatile is that what you call Ponzi? Better get a check on your definitions. Of this is your definition then the share market also falls under Ponzi scheme doesn't it? It is also quite volatile, isn't it?

The thought sprung out from a mind that never take his time to understand the fundamentals of cryptocurrency and tends to judge from a different point of view. No, cryptocurrency is nothing close to a Ponzi scheme. It is not like there is one admin taking in the money and then using it to pay other people. This is a free market, people buy and sell digital currencies, decentralized in nature with no central government in charge.

Some of my friends who are in your thinking have lost money from their investment in crypto currency as a result of the market rise in 2017 and that was why they are of the believe that Bitcoin is a ponzi scheme which is not so if you read from the definition of ponzi provided above by some of the respondent.

If cryptocurrency were to be Ponzi scheme , it would have collapse by now and people would have forgotten about it. I think you need to understand the real meaning of Ponzi scheme because it don’t match to what crypto is. For the past decade crypto has been existing and doing well even though we have so many of them majority of which doesn’t have a genuine purpose. This is one of the reasons why many people think it’s a Ponzi scheme . But itsnt for anyone who understands what crypto is all about .

You got it wrong.
99% of altcoins are get rich fast scheme, nothing more. "ideas" and "innovations" they propose are pure nonsense targeted to people that have no idea how this technology actually works and that its just empty words
Crypto was needed long time ago, but noone could create decentralized without central authority, Bitcoin did that, that is revolution. Since Bitcoin in 2009 there is no such project that achieved actual revolution.

i don't think the world of crypto is one big ponzi scheme. you are saying that because thousands of projects have been created in a short period of time. this is because many people on this earth find a way to scam people by using the name of crypto and blockchain. but if everyone will take advantage of the benefits of using the blockchain technology, it would really eradicate most of our everyday problems like the convenience of paying our bills and other necessities anytime anywhere. those scammers ruined the image of crypto. but to all the believers that crypto is our future, they keep on creating projects that are really worth our while.

This argument may have been valid before the entire slew of commerce, etfs, useful data, etc hit the market. Now don't get me wrong, there's still alts out there that are ponzis, but they are being busted by the big dogs faster and better, regulation is here now, etc. So Crypto is here to stay, and not a ponzi. You could call the entire wall st stock market a ponzi based on the fact that its, buy low, sell high to the next sucker.

For ten years of existence, if cryptocurrency is one of the Ponzi Scheme it definitely won't go that long, it surely it is halted by the authorities and many have being engaged into these. Maybe they could say that this is a kind of scam cause we can't see it and even touch it, all is just a form of codes.
Anyways, we have crypto and many were believing it and so it can manage to stay for us long enough, and for sure it can thoroughly proven in the coming days.

People are going to do everything to avoid the responsibilities of their actions even if holding cryptocurrencies means that you cannot really give excuses since you are effectively 100% responsible for what happens to your money, this is also a basic mechanism of defence, when we win we want to take all the glory for ourselves but when we lose we want to avoid the responsibility and try to blame everyone else.

But if we do not accept our mistakes and always try to avoid accepting them then it will impossible to improve since you will not learn the hard lessons that come from losing a lot of money.

We've got very small number of users around the globe terming it a ponzi. This is because of some unexpected incidents that turn their minds with a thought that bitcoin is a ponzi. I wish to suggest an example. I explained about to a friend of mine. Soon after hearing bitcoin, he said it is a scam. He's no more ready to hear what I'm coming to say. Already one of his working colleague has got trapped under the hands of a scammer and lost some fund. This has made him come up with such thinking. Same is happening around, which is purely the mistake of the users.

It's just another venue to take chances, same principle with forex and stocks where traders needs to showcase its skills in order to benefits since chances
of taking advantage is far higher for those who masters the market than to those who's new to this business, it's not a ponzi type of business where people needs to rely with someone to join but rather a venue where opportunities are open.

It's a matter of how well you understand the industry and how willing you are to take part of this market.

Ponzi scheme is a fraudulent investment with great promises of good return. It is a  pyramid scheme where old investors are paid from the investment of new client which is not sustainable at the end. Bitcoin is created as a payment option which can be used as an investment. It is also traded so the two are totally different.

Cryptocurrency is the new level of technology for CURRENCY of the world.
It is a new way to establish a new business in help of many people who wants to invest and gain.
CRYPTO is not a scheme PONZI though, there are some in this technology who tries to scam people.

I agree , the pyramid and bitcoin 2 different things , bitcoin is already 10 years old , the pyramids do not live so much , who think that bitcoin is a pyramid I think you need to more carefully consider your insights

Cryptocurrency is different from ponzi, ponzi are created with the purpose of promising people of getting double of what they invest within a short period of time, while cryptocurrency are created mainly to stabilize people income, save funds by investing money in buying Bitcoin instead of banking in banks in which we yield low interest after a long period of time.

I think cryptocurrency is not a ponzi scheme because crypto has survived for 10 until now it is still growing. if the ponzi scheme cryptocurrency will not last long. for example, like MMM, which only lasted 2 years, is a ponzi scheme. and the number of ICOs and new coins that appear is the work of fraudsters who want to get money quickly.

Literally speaking, yes! it is a Ponzi scheme. Only if you are not yet fully knowledgeable in cryptocurrency pal.
But once you discover the deepest reason of it, you will find out in a long run that this cryptocurrency can give a big help
for us to gain big in the future and its potentiality in the market as long as the coins you are going to hold em has a high volume
in the market as well.