Is bitcoin just a glorified ponzi scheme?

[kotajikikox]

I saw someone from another website ask this and I wanted to bring the discussion here in case a newbie is also asking the same thing. First of all, what is a ponzi scheme? a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors. Three factors that make up a ponzi scheme: “guaranteed” high returns, dependent on new investors, and falsified documents.

So is bitcoin just a glorified ponzi scheme? No.

“Guaranteed high returns” = Bitcoin is decentralized and there is no central authority that is making promises to investors that they will get their money back. Other investors may hype bitcoin up but they are not actually associated with bitcoin itself.

“Dependent on new investors” = Bitcoin will run even without new investors. Yes, the price will fluctuate depending on the demand but the network will still work. Unlike in a ponzi scheme where it will collapse without a new investor so much as in a day.

“Falsified documents” = Everything is transparent in bitcoin. Every transaction is on the blockchain and open for anyone to see and keep track.

It’s 2025 and I can’t believe some people still think that bitcoin is a ponzi scheme. Hopefully this answers those people’s doubts.

[odolvlobo]

I agree.

Anyone who claims that Bitcoin is a Ponzi scheme either doesn't understand how Bitcoin works or doesn't understand what a Ponzi scheme is, or both.

[$crypto$]

Discussed before --- Bitcoin is not a Ponzi. But sometimes it is marketed like one.

Anyone who says that Bitcoin is a ponzi scheme then he is a layman who is skeptical of bitcoin, I don't understand why there are some people saying that if they don't read the white paper?

A real ponzi scheme where they invest by promising a high ROI within a certain time is clearly a ponzi scheme.
Whereas Bitcoin is not like that the ups and downs no one knows, which promises an increase in bitcoin for HODLers for the long term because we often see the history of bitcoin always going up.

[Odusko]

What do you expect people to say when you also make Bitcoin to look like a ponzi with the statement guaranteed high returns, when we should always advocate and make statements regarding the risk of losing your money and having to wait for a long term to get a return and possible profits, despite that Bitcoin is mostly seen to have been on an uptrend profits duamention for long but it doesn't mean that there is no high volatilities in it market, so let not assured high guarantee profit while investing in Bitcoin.

[headingnorth]

Bitcoin is recognized as a commodity by the G20 governments, including the US govt.
A commodity cannot be a ponzi scheme. Nor is any other commodity like oil, wheat, gold, etc.

The purpose of a ponzi scheme is to enrich those who created it.
But the creator of bitcoin Satoshi Nakamoto never profited from his own creation.

However, altcoins, memecoins, shitcoins were all designed from the start to enrich their creators.
To me those are obvious ponzi schemes and at best are securities.

[bitbollo]

OP my suggestion, avoid to waste time on internet with random people that doesn't understand bitcoin.
Or at least are not able even to use google since they can find many explanations on the argument.
Or they miss basic logic, since many things could be called a "ponzi" in the economy if they think in this way.
even the whole market of art, collectibles or even metals it's like somewhat a "ponzi".

But here we don't have any promise of return but we have the promise to not trust a third part and make a transaction.
Here we don't have any funds to be taken from anyone since we can use bitcoin always since 1 btc = 1 btc no matter FIAT.

[AVE5]

So what's the question that was asked by the one off this forum? Or are you referring to where you asked if is bitcoin a Ponzi scheme? If yes then it's a hell NO.
If bitcoin was such ascribed, then the governments wouldn't had adopted it. I just needed to know on what perspective does people even have bitcoin suspected to be scam? It decentralization or the digitality? Or is it that it Investors haven't been benefiting from it when followed the market demands such as not providing quick profit return? How exactly?
Sometimes people will just want to throw stones to cause havoc over genuine source and that's just how the critics are breed.

[Die_empty]

From your definition, it is evident that Bitcoin is not a Ponzi scheme. In a Ponzi scheme, you collect money from some investors to pay others. Ponzi schemes has a centralized authority because they are a set of people who control or run the business. In Bitcoin, you are not paying money to anybody. Just like buying an asset like gold or land, Bitcoin is an asset you buy.

In Ponzi schemes, you would be told when you put in money and receive your profit. But you are free to handle your Bitcoin any how you want. You can decide to sell now or in the future.

[mcdouglasx]

Bitcoin is not a Ponzi scheme for many reasons, the main one being that it does not force or deceive users into participating so that earlier entrants can receive direct benefits.

It was not designed as an investment vehicle, nor does it inherently have value.

The fact that it is worth what it is today is solely due to supply and demand, driven by people choosing to use it. Additionally, the early Bitcoin users, in a sense, never cashed out, which is why they are now millionaires, because they "hodl".

[Zoomic]

“Guaranteed high returns” = Bitcoin is decentralized and there is no central authority that is making promises to investors that they will get their money back. Other investors may hype bitcoin up but they are not actually associated with bitcoin itself.

Early commers had high returns. Although it was not guaranteed, but they took the risk. Still in bitcoin, people who bought earlier in a lower price will have better RoI. This is the confusion of people why they said BTC is a pomzi scheme. But I am surprised how the Ponzi Scheme is sustained for more than a decade lol.

“Dependent on new investors” = Bitcoin will run even without new investors. Yes, the price will fluctuate depending on the demand but the network will still work. Unlike in a ponzi scheme where it will collapse without a new investor so much as in a day.

Bitcoin will sustain without new investors only if the existing investors are eager to own more bitcoin and also sell.

“Falsified documents” = Everything is transparent in bitcoin. Every transaction is on the blockchain and open for anyone to see and keep track.

Blockchain is the most powerful vindicator of bitcoin.

[Rruchi man]

It’s 2025 and I can’t believe some people still think that bitcoin is a ponzi scheme. Hopefully this answers those people’s doubts.

Unfortunately, your answer will still not be sufficient to help people's doubts because the people who should be reading this are unfortunately not members of this forum. I do not think anyone who is on this forum as an active member still has the mindset that Bitcoin is a ponzi scheme because the evidence is very clear.

“Dependent on new investors” = Bitcoin will run even without new investors. Yes, the price will fluctuate depending on the demand but the network will still work. Unlike in a ponzi scheme where it will collapse without a new investor so much as in a day.

This should be the clearest indication because so far in this forum and even outside, nobody has preached that you need to bring in two investors or even one for them to be under you for the system to keep working. You can invest in secret, and the system will still function.

[EL MOHA]

[/i][/u] Three factors that make up a ponzi scheme: “guaranteed” high returns, dependent on new investors, and falsified documents.

First of all those who called bitcoin a Ponzi scheme are not illiterate or ignorant in my opinion they are clearly just haters of bitcoin trying to spread a wrong narrative or stereotype of bitcoin. Someone who knows Ponzi scheme very well will understand that it is not Ponzi scheme because I have never seen a Ponzi scheme with a use case before but bitcoin use case is the major reason why it standout and the main reason for the adoption rate increase.

Bitcoin reward isn’t guaranteed as usually proclaimed by those spreading the streotype, but yes new investors contribute to the growth of bitcoin and as new investors come the adoption rate increases and that’s also goes to the price because of demand and supply unlike Ponzi schemes

[Lida93]

.[/i][/u] Three factors that make up a ponzi scheme: “guaranteed” high returns, dependent on new investors, and falsified documents.

But does ponzi schemes guarantees high returns? Or this is just misplacement of words or an error in the characteristics of what defines a ponzi scheme.

I know bitcoin guarantees high returns but in a long term holdings plan but not for a ponzi scheme which the most longevity a ponzi scheme has existed which am aware of isn't beyond a year and it crashes with victims money.

[JoyMarsha]

I saw someone from another website ask this and I wanted to bring the discussion here in case a newbie is also asking the same thing. First of all, what is a ponzi scheme? a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors.

If this is the correct definition of what ponzi schemes mean, that means no one should call Bitcoin a ponzi schemes because it is not a chain network in that someone has to be given money collected from other people through the investment they made. By the way, no certain amount is singled out to be invested in Bitcoin. Everyone is free to invest in any amount they choose, they can even sell at any time they want without the permission of anyone.

The lack of understanding of the concept of Bitcoin has made people ignorant of the simple fact Bitcoin is a digital currency and it is a long term investment planning that its price increase on its demands and supply

[OcTradism]

So is bitcoin just a glorified ponzi scheme? No.

Bitcoin is not a Ponzi project while there are scam projects that try to parasite on Bitcoin blockchain or use Bitcoin in their projects for Ponzi scam attempts.

Bitcoin is not a Ponzi, never.

“Guaranteed high returns” = Bitcoin is decentralized and there is no central authority that is making promises to investors that they will get their money back. Other investors may hype bitcoin up but they are not actually associated with bitcoin itself.

There is no such profit guarantee and there is nothing like "Too good to be true" offer for massive profit from Bitcoin. Everything was recorded and people can check Bitcoin ROIs over past years and consider Bitcoin fundamentals before making their investment decision.

“Dependent on new investors” = Bitcoin will run even without new investors. Yes, the price will fluctuate depending on the demand but the network will still work. Unlike in a ponzi scheme where it will collapse without a new investor so much as in a day.

It's kind of true because new investors mean new capital that help price going up. It's true with all assets, not only with Bitcoin.

All markets are zero-sum game and it's similarly with Bitcoin market.

“Falsified documents” = Everything is transparent in bitcoin. Every transaction is on the blockchain and open for anyone to see and keep track.

It’s 2025 and I can’t believe some people still think that bitcoin is a ponzi scheme. Hopefully this answers those people’s doubts.

Bitcoin is a public ledger and everything can be traced and checked publicly and transparently. Bitcoin white paper is publicly published years ago and Bitcoin project itself is an open-source project.

More Debunk Bitcoin FUD documents.

[Darker45]

I guess we have to understand that despite Bitcoin's growing popularity, it's still young, very young. People are still getting to know it. Even in our families, circle of friends, organization, work, advocacy or whatever group, school, neighborhood, church community, and so on, how popular is Bitcoin really? Is the majority into it already? I doubt. That's how young Bitcoin is.

So, perhaps it shouldn't come as a surprise when you encounter individuals who don't know Bitcoin yet. Eventually, however, the option is for them to willingly join or be forced to join.

[BABY SHOES]

“Guaranteed high returns”

That's for sure... That ponzi schemes will offer guaranteed high returns... for example, investing $1000 in 10 days will become $1300 because they offer 30% ROI and some even crazier ponzi schemes can offer almost 100% ROI.

“Dependent on new investors”

Just like MLM... If there are no investors then the company will not be able to pay the old investors.
If there are no new investors then the company will close and become a SCAM.

“Falsified documents”

I saw on the ponzi scheme website they show a lot of large transactions but they are all unclickable, and obviously falsified documents.

[LogitechMouse]

---
Three factors that make up a ponzi scheme: “guaranteed” high returns, dependent on new investors, and falsified documents.
---
It’s 2025 and I can’t believe some people still think that bitcoin is a ponzi scheme. Hopefully this answers those people’s doubts.

There will and will always be people that will think of Bitcoin as not only a ponzi scheme, but other negative thing as well like a scam, or whatever it is. Most of them are ignorant people though that doesn't have any idea on how Bitcoin works.

The fact that the return on Bitcoin isn't "GUARANTEED" is already enough proof to say that it isn't a ponzi scheme. TBH, I haven't heard anybody saying it for quite some time already. Maybe it's because of the fact that we are in a bull run currently, and the sentiment around is positive. When we enter the bear market, we might hear some negative things about it like the ones mentioned. Whatever the case is, we don't need to prove that Bitcoin isn't a ponzi scheme. They will just realize that what they believe is wrong as time passes by.

[jcojci]

If someone wants to invest in Bitcoin, he should know that he need to responsible with his Bitcoin. Bitcoin is not a ponzi which promises to make a fast profit. Having Bitcoin mean he need to control his funds in term of Bitcoin without anyone knowing how many Bitcoins he has.

But if there are people who still insist to say Bitcoin is a scam, you can let them like that because you can not change their opinions. Until they see Bitcoin performance by themselves, they will believe that Bitcoin is not a scam. But if they don't want to accept that, that will not be a problem.

After all, Bitcoin can still grow without them because other people will join in Bitcoin and have their investment. Bitcoin don't need them but they need Bitcoin so they can have a new investment in this era.

[X-ray]

It’s 2025 and I can’t believe some people still think that bitcoin is a ponzi scheme. Hopefully this answers those people’s doubts.

Some people are just so stuck in the past and being overly paranoid. These kind of behaviour is what causes technology to slowly advance.

If only most of people can learn first before saying nonsense they would've known. Where else you can find a tool for wealth transfer that's trustless and decentralized, no middle man or anything. you can be sending billions and network will just let it through as if nothing happened because it's your money in the first place.

That's the strength of decentralized, trustless system.