Bit Coin is a Ponzi Scheme

[d5000]

Bitcoin is "neutral", so I do not agree nor disagree with the OP. If we use it as a Ponzi scheme, it can have some characteristics of it.

I want to quote from INVESTOPEDIA : "A Ponzi scheme is an investment fraud where clients are promised a large profit at little to no risk." Take note of the following:
 - When we buy Bitcoin nobody is promising us large profit.
 - Nobody says that when you invest on Bitcoin there is no risk. We all know that Bitcoin is a cryptocurrency which is volatile, so risk is involved.

Well, "nobody" is false, unfortunately. Before Google and Facebook banned cryptocurrency ads, I got a large amount of ads trying to get me into buying Bitcoin or $Altcoin, promising me to become a millionaire instantly.

One could say that Bitcoin sometimes works as a "decentralized Ponzi". There is no centralized party that profits from it, but multiple early adopters or "buy-low-sell-high"-speculators ... in this sense, the OP is correct. So don't be naive: Most of the bulls that are talking about a $1M Bitcoin are wanting to sell their coins to a greater fool. This is very similar to ponzis.

But ...

Second point, Bitcoin is a VALID Currency.

That is the idea. And thus, Bitcoin may have some Ponzi'esque characteristics, but it is not only a Ponzi.

Time will tell if we can break out of the speculative boom-bust-cycle which makes BTC appear like a Ponzi, or if we can make Bitcoin a real success as a currency. As of today, it is uncertain.

Just my thoughts... Thanks

Idem.

[awawo]

Well you may be right on the fact that bitcoin does not have the legal backing just like the dollars and  people are not compelled to recognized bitcoin but the fact still remains the same that bitcoin is not a ponzi, bitcoin has survived more then the life Span that any ponzi scheme can survive. Bitcoin is a store of value and despite the fact that bitcoin is not supported by the authority it will still survive and keep serving the needs of our financial life.

[laiya94]

Dude, you are in a wrong place, it's not a Ponzi scheme. Just because some people use bitcoin for Ponzi schemes we can't blame onto bitcoins because Ponzi schemes started with fiat currency and then came into crypto. I prefer you to first learn about blockchain technology before flaming in a public forum.

[oludare1]

A Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors. The Ponzi scheme generates returns for older investors by acquiring new investors. This is similar to a pyramid scheme in that both are based on using new investors’ funds to pay the earlier backers. For both Ponzi schemes and pyramid schemes, eventually there isn’t enough money to go around, and the schemes unravel.

Absolutely nothing about Bitcoin is a secret. It is one of the most open technologies in the world. It’s open source, anyone can review the code, anyone can contribute to the code, anyone can run the software voluntarily and participate in the network, and anyone can use the network without permission.

The entire history of all Bitcoin transactions is visible to anyone in the world too.
It’s a total paradigm shift from any kind of financial system in the history of mankind. It’s the total opposite of a fraudulent investing scam, which is shrouded in vague promises of high returns with capital inflows and outflows that are kept in a secret ledger.

Bitcoin doesn’t generate returns. It’s just software. The price of Bitcoin is directly correlated to its scarcity and demand. The demand is not forced on others, nor do Bitcoin’s biggest proponents go around asking people for money and telling them to invest more into Bitcoin. New users that join the Bitcoin network don’t fund the older users with new money. Not at all.

[lastnumber]

I tried to read what you wrote. There are some things that are logical in your presentation, but I think you have a problem in nature. Bitcoin is not Ponzi. The nature of Bitcoin is built on the blockchain chain. It is possible to analyze and exploit Bitcoin at a different value, but the nature of Bitcoin is Blockchain. If the things I share are not correct then I would love to hear your opinion.

[The Cryptologist]

Op said that fiat has value because it is recognized by the law but then he questioned bitcoin having value. So fiat is actually worthless if the law does not recognized it and it's just basically a paper that anyone can make. Fiat has much more flaws than btc so reaserach first before bragging.

[yansen]

you just understand less about Bitcoin and other crypto currencies. how do you understand about paypal, payoneer, skrill. it's the same as a digital currency like bitcoin. just a little difference, they all have a centralized system, while bitcoin does not. but Bitcoin is appreciated by the otang people in the world. of course who knows the technology. while the USD money. appreciated by the government and can not be changed. I think Bitcoin is a commodity. because the same as gold, silver etc.

[sagittarius1]

Your purported most intense superpower is as of now confronting challenges from all around the globe. In addition on the off chance that they are such a ground-breaking nation why have they not possessed the capacity to prevent any such cash from developing. Bitcoin has develop a significant circumstances I don't think Donald trump is that doltish that he hasn't generally seen such thing? Trust me no support will do anything when individuals feel themselves unreliable in their own nation. Bitcoin is how they are attempting to discover some flexibility

[Kayuslawal]

Bitcoin is not a ponzi scheme, it's a real digital currency that is here to stay, it will be accepted by all...

[InKiTy38]

Multi-level financial mobilization is a form of fraud that combines the Ponzi scheme and the power of a multi-level model. As a result, the network business also enjoys the reputation of it. And I assert that bitcoin is not the same as ponzi

[almaroof]

Every Ponzi scheme operates a pyramid system with no intrinsic value.  Bitcoin is not like that.  Bitcoin is a currency, it's can be used for numerous stuffs and also a store of wealth

[taeewo]

its not a ponzi scheme, bitcoin is decentralized currency that is real and confirmed,cant be compared with ponzi  scheme thats not reliable and trusted.

[skibikipapa69]

Bitcoin is and was never a ponzi scheme many people have proven that. If bitcoin is a ponzi scheme then bitcoin could have die out years ago yet more and more people are buying and using it. Bitcoins popularity still increases and people are still crazy about it while you are still hating on bitcoin instead of enjoying its benefits.

[vonnyaries]

bitcoin is not a ponzi scheme because there are managed by ssytem and very tranparent for all user, but in this world the bitcoin is used by bad people as the media to makes a ponzi scheme, because bitcoin is the one platfrom that has the good system, so they can use the bitcoin easily to use it for their ponzi system application. so we need to be careful if we want to invest in a web with bitcoin payment, maybe that investment program is the one of ponzi scheme

[Cryptocb]

The question you asked is currently No, is the answer, because bitcoin is a digital currency that is used for buying and selling of goods and services, which perfectly working online, therefore all depends on you, if you want to use it for Ponzi scheme to earn money

[zhanyiguai261315]

People who think that BTC is a side scam are just ignorant and short-sighted.
BTC has created tremendous value on a global scale, with thousands of startups and businesses creating tens of thousands of jobs that provide value to users, infrastructure, hardware, software and applications.

[Ayohafees]

LOL... I am surprised to see a user of this forum saying Bitcoin is a ponzi. This really show a little knowledge of Bitcoin and block chain technology. BTC is not a ponzi  a real technology.

[Desscount]

Bit coin is a Ponzi scheme. Don't listen to the bit coin shills on here. The newcomers buying into bit coin and driving up the price are just making the early adopters richer.

That's how stupid people are. A sucker is born every minute. But YOU don't have to be one like all the other bit coiners.

The USD is a valid currency because people are required by law to recognize it's value. It has value because the most powerful superpower on the face of the Earth uses it and backs it.

Where does bit coin get its value from? Some computer nerds living in their mothers' basements and Chinese speculators who say it has value? The few online drug dealers who accept it?

If you can't figure out that buying into a totally faith-based economy, with no regulation whatsoever, of a imaginary currency that only exists virtually, through a broker that has no compelling reason to give you any of your money back other than possible negative word-of-mouth, is a bad idea, then maybe you should really consider spending less time speculating on BTC and more time getting remedial education.

then ? why are you discussing here? what's in it for you? or you lose big and then depression?
I think you can learn the history of bitcoin from the first time it was created. this discussion has greatly evolved over time to say that bitcoin is a ponzy scheme. and it was very wrong.

[fuckthisform]

bitcoin is a currency from the simple fact that you can buy things with it or trade it for another coin if you want just as you do if you buy something in another country that use different currency than yours. with your logic everyone who use dollars or any fiat money is being schemed cause he trades something with actual value(like food) for something with no actual value like the dollar. and no, "required by law to recognize it's value" don't mean much when people realize that they can't buy what they actually need with the fiat currency(with the "real value") and you can see it in countries with fiat currency crisis like venezuela and iran. in the previous decade there was also the example of the Zimbabwean dollar that lost all of its value within a few years and turned into nothing but a piece of paper you can only use for wiping your ass.
the country can only promote the fake value of the money but at the end its value becomes just as fake as any other coin whether it is a fiat coin or cryptocurrency cause you can't do anything with a piece of paper called a dollar other than trading it for something you realy can use like food or a car.

"imaginary currency that only exists virtually", when you look at the numbers in your bank accounts and see something like 30000$ in the account what do you think this number represent? a vault in the bank full of dollars with your name written on it?, nope, they are just "only exists virtually" cause all the banking systems works with computers.

cryptocurrency skeptics like you tend to forget(or not bothering to know)what the "real money" is and how its work.


but bitcoin can be somekind of a scheme if you only want to use it as an investment and expect its prices to get skyrocketed again and again and make you rich, many of those people are actually more like you cause like you cause they don't see bitcoin(or other cryptocurrencies) as currency at all and only see it as an investment or scheme they can use to make money.

[Ains_sama]

How about you..? why are you here? if you want to make aware of the crypto community. I think you will be aware of crypto and its network. you are right the USD currency is valid. but Bitcoin's goal is to make it easy for a payment transaction, fast transfers between countries, and most of all transparent transactions and small fees. whether USD can do this. how can someone send $300 million with a $0.04 fee. can the central bank do that.? no. only bitcoin can do that. and this is the solution everyone is looking for in the world. without a middle man. and USD or any other real currency can't do this.