The term “Ponzi scheme” is often used by conventional “economists” and politicians to describe Bitcoin. But, the utilization of the term to explain Bitcoin’s structure demonstrates a high level of incompetence and a significant lack of economic and financial knowledge.
It was quite evident that Somaiya had little to no understanding of the structure of neither Ponzi schemes nor Bitcoin. He presented a severely flawed argument by comparing self-regulation to a Ponzi fraud.
However, his comparison of Bitcoin to a Ponzi scheme was flawed in every possible way, as Ponzi schemes are not self-regulated, they are regulated by a closed group of operators.
The government of India and its financial regulators are taking a different approach to that of Somaiya. Many of the regulators have an actual understanding of Bitcoin, its implication to the global economy and the supposed role of regulators in enabling the local Bitcoin industry to grow.
I'm glad that the Gov of India did not take any rash decision and looked at the tech from another angle. Hopefully the team that was given responsibility look at the benefits of crypto technology and work out the best possible solution. looking forward for some good news in 3 months.
https://cointelegraph.com/news/bitcoin-ponzi-scheme-indian-government-seem-to-disagree-with-claim
