Is bitcoin just a glorified ponzi scheme?

[hero_the_bossman]

This is one of the classic arguments against Bitcoin. The fact is that the free market controls the price, there is no central authority paying returns while others wait for their turn - anyone can buy and sell as they wish. It has been ironic to see it as an argument from day one, it only proves peoples stupidity. Though I will say, it's been a while since I've seen people (other than obvious adversaries) call it a ponzi scheme. I think that argument is slowly fizzling out.

Information became easier to access, and people start seeing through anything that is filling their ears on a whim: they check info, dig themselves, especially the newer generations.

[Ambatman]

Many people today don't even know what Bitcoin is
Many would argue it's an investment that is expected to give you huge returns as time goes on.
This gives an opportunity to people critics to state that early investors would benefit alone
Neglecting that Bitcoin is a decentralized payment method first.

The bubble will burst, the bubble will burst, we still waiting till now.

But Bitcoin could collapse by power grid or Internet failure. If the grid or Net failure was hard enough... Bitcoin, gone instantly, never to return.

Even In extreme case where all power on earth is short down
when power comes back. Everything would kick start again.
the system’s design allows for a restart as long as one copy of the blockchain survives.

[hyudien]

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 are two types of people who say Bitcoin is a Ponzi scheme, the first is Bitcoin haters, they will claim continuously even though they cannot prove it accurately, and the last is people who are fooled by the words of haters or people who do not know Bitcoin or in the sense that they do not want to learn about Bitcoin from other sources and only believe in one source, so we as old investors and already know how Bitcoin works, things like this are not worth listening to.

[Marykeller]

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.

Your mentality and other people's mentality towards Bitcoin will not be the same. Many people are not exposed to Bitcoin knowledge like we do in the forum. They are still lagging behind because they have nobody who is passing the right information to them about Bitcoin; they are relying on the information they heard from the magazine or from people's mouths, even their own experience with Bitcoin. Nobody has actually given them the right information on Bitcoin, why it stands out not as a Ponzi scheme.

Till when that is done, the wrong mentality of some people towards Bitcoin rides on. Don't feel shocked that people still think Bitcoin is a Ponzi scheme even in the current year when Bitcoin has proven itself that it has come to stay.

[serjent05]

“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.

One of the reason why many thinks that Bitcoin is a ponzi scheme is because of the early company that uses Bitcoin for their Ponzi scheme activity.  Aside from that, many early advertisers promote Bitcoin as a get-rich-quick investment scheme.

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

Bitcoin will only sustain if there is a real life uses, gladly it has one, being an alternative currency that can be use to purchase goods.

“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.

I highly agree that the transparency of the Bitcoin blockchain makes the government reconsider their once thought of Bitcoin as a tool for fraud.

[Aanuoluwatofunmi]

So is bitcoin just a glorified ponzi scheme? No.

I will further add to this that we should know more about the bitcoin whitepaper, then study on the blockchain technology as well, all these will give us more clue on what to expect from bitcoin and how bitcoin has been the only most trusted digital currency and why it cannot be related to any ponzi schemes projects we often run after for quick money, not that we cant make quick money with bitcoin as well, but the means are different form that of ponzi.

We can further learn to know more about bitcoin whitepaper

understanding bitcoin whitepaper
https://blog.keys.casa/understanding-bitcoin-whitepaper/?utm_term=whitepaper-day&utm_campaign=security-briefing&utm_medium=email&utm_content=oct-31&utm_source=hubspot

[Tmoonz]

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.

You are right in your words perhaps it should also be plainly written that there is no 100 percent guarantee that Bitcoin will be successful over time but yet will still have to believe in it potential and possibilities, Bitcoin is not  risk free that's is also what people should crusade about in other for people to consider their own level of risk tolerance in light of coming in terms with Bitcoin, while downward volatility is part of the drawback that most people consider it can up as well. However, whichever it is it is always advisable that we consider investing an amount we can afford to lose which should discretionary within our own circumstances while prioritizing taken care of our other important life expenses.

[yudi09]

-snip-

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.

It is not wrong if the OP tries to bring such questions to the forum for discussion, but I think the OP already knows the answer by being active on the forum.
However, people will be influenced by the logic games of people who don't like Bitcoin with all the advantages that Bitcoin has.
With various practices since Bitcoin first existed with various histories of the world economy until now it has been recognized by the world that Bitcoin is something great.
So, don't waste time debating something that is upside down from the truth.

[notocactus]

We can further learn to know more about bitcoin whitepaper

understanding bitcoin whitepaper
https://blog.keys.casa/understanding-bitcoin-whitepaper/?utm_term=whitepaper-day&utm_campaign=security-briefing&utm_medium=email&utm_content=oct-31&utm_source=hubspot

I invite you and others to read this graphic illustration on Bitcoin for beginners. You are not a beginner but I think it is helpful somewhat foe you, and you also know one more resource for sharing with other newbies in future.

https://www.lopp.net/bitcoin-information/bitcoin-explained.html

Debunk Ponzi fud.
https://river.com/learn/is-bitcoin-a-ponzi-scheme/

[Gozie51]

First, I wave it with the palm if I see where bitcoin is discussed and treated as a ponzi or get rich quick investment.

People perish because of their ignorance.

Information is key and knowledge is power. So thanks to this forum that has educated millions of people on what bitcoin is. A cryptocurrency that is decentralized and not controlled by few or government but community.

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.

You are correct, one of the ways to know ponzi is that you already know before hand how much you are expecting to earn at a certain time from the numbers of people you brought called downliners. Bitcoin has no downliners or upliners, it is independent and you have freedom to invest or not without any external pressure to commit any amount of money to the growth of whatever registration.

Those who hype Bitcoin price are only doing that for their selfish gain, the whales. They only succeed with the weak hands, the weak hands probably with the mentality of ponzi or coming from ponzi background. But those hodlers who understand bear season, bull season and how halving circle happen plus history of bitcoin won't be deceived by ponzi operations.

[dzungmobile]

You are correct, one of the ways to know ponzi is that you already know before hand how much you are expecting to earn at a certain time from the numbers of people you brought called downliners. Bitcoin has no downliners or upliners, it is independent and you have freedom to invest or not without any external pressure to commit any amount of money to the growth of whatever registration.

They only give you a pyramid of earnings and they will try to make many noisy and attractive meetings, conferences to fool you. If you believe in their very good offers of passive earnings, you will become more blindly in their Ponzi scheme. By design of Ponzi scheme, you will try to find more 'victims' even you don't realize that you are helping them to find more victims. People usually lose too much money in Ponzi scheme before they realize it and at that time, it's just too late.

Bitcoin is available for puchasing and selling on either OTC markets or Spot markets and if you want profit, buy and hold your bitcoin as Bitcoin market history shows that if you can hold your bitcoin for about 5 years, you get profit. There is no need to find downlined victims like in Ponzi scheme.

https://hodl.camp/

[Bastketsrus]

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.

Spot on. Bitcoin’s powerful, but not risk-free. No need for hype—just honesty and patience.

[sig23]

well the encryption space 256 bits  is chosen because a higher space would mean that the decentralized operation couldn't exist due to storage constraints

right now at 256 bit encryption the bitcoin ledger takes a few gigabytes storing the transaction data on systems running node servers

and while it is unfeasible for the average consumer to brute force this space i personally doubt the claim that if large data centers like amazon or google were to run a brute force attack using all that power targeting rich addresses  that it wouldn't be successful

adversely the amount of processing power that servers have is directly proportional to the average personal computer power in other words as personal computers get faster the data centers get faster

so basically i have this sneaking suspicion/(conspiracy that the government/the tech industry  is perfectly capable of decrypting any address will be because the encryption space or raw computational power required to iterate through all the possibilities is and always be limited  limited by people's ability to to host decentralized servers on consumer grade equipment

i know i know but i think its especially possible given the amount of gpus being used for a.i so if you ask me the government already can access your bitcoin or other currency even if they say they cant i personally doubt it

yes it will waste electricity but we do have solar excess that we cant store

[Bastketsrus]

First, I wave it with the palm if I see where bitcoin is discussed and treated as a ponzi or get rich quick investment.

People perish because of their ignorance.

Information is key and knowledge is power. So thanks to this forum that has educated millions of people on what bitcoin is. A cryptocurrency that is decentralized and not controlled by few or government but community.

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.

You are correct, one of the ways to know ponzi is that you already know before hand how much you are expecting to earn at a certain time from the numbers of people you brought called downliners. Bitcoin has no downliners or upliners, it is independent and you have freedom to invest or not without any external pressure to commit any amount of money to the growth of whatever registration.

Those who hype Bitcoin price are only doing that for their selfish gain, the whales. They only succeed with the weak hands, the weak hands probably with the mentality of ponzi or coming from ponzi background. But those hodlers who understand bear season, bull season and how halving circle happen plus history of bitcoin won't be deceived by ponzi operations.

Well said. Bitcoin isn’t a get-rich-quick scheme—it’s a long-term game built on real principles. Education is key, and this forum has helped clear up so many of those ponzi-style misconceptions. The more people understand the difference, the stronger the community gets.

[HelliumZ]

First you learn about Bitcoin and know a Ponzi scheme well, then tell me what Bitcoin actually is. You don't actually know about Ponzi schemes or even if you do, you don't know how Ponzi scheme projects embezzle people's investments. So you can't roughly call Bitcoin a Ponzi scheme. You consider Bitcoin a Ponzi scheme while the world's most famous people are investing in it.

[GiftedMAN]

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.

The majority of those who sees Bitcoin as ponzi scheme are those who has never done anything related to Bitcoin they only believe what they heard from rumors, an example of such people are those people on the media who do things based on what their favorite celebrities say they hate whatever they hear from them.

[Z_MBFM]

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.

The truth is that those who think Bitcoin is a Ponzi scheme do not know what Bitcoin is, what its future holds, how it works, and what its past was like. And the biggest thing is that they are still very afraid of Bitcoin, which is why they make such comments. Only those who still think that way about Bitcoin will regret not investing in it in the future. And then they will blame their stupidity. Those who believe in long-term investment in Bitcoin. They have never suffered any losses so far.

[Finestream]

Bitcoin will always be a ponzi scheme for those who don’t recognize the idea of bitcoin, and all they think is that bitcoin is a get quick-rich. And for those minds who are only limited to fiat and banks, but are closed to the idea of bitcoin and the rest of cryptocurrencies.

Education is the key. If they remain uneducated with bitcoin, they will always see it as a ponzi scheme no matter how often we correct them.

[Ojima-ojo]

First you learn about Bitcoin and know a Ponzi scheme well, then tell me what Bitcoin actually is. You don't actually know about Ponzi schemes or even if you do, you don't know how Ponzi scheme projects embezzle people's investments. So you can't roughly call Bitcoin a Ponzi scheme. You consider Bitcoin a Ponzi scheme while the world's most famous people are investing in it.

Bitcoin holding is an investment, but ponzi scheme is not an investment, this is why and ways that we differentiate Bitcoin from a ponzi scheme since we have acknowledged that Bitcoin have existed above 10 years since it existence, but ponzi can't operate for at least a year without the bubble busting.


Ponzi is a scam and we shouldn't compare it to any form of legitimate business and investments, so long as it sustain it temporarily nature of return which is not sustainable.

[Su-asa]

Honestly the first comment on the thread has given you the right words, but I can add just few words.
However if anyone wants to think Bitcoin is a ponzi scheme they should because why not? They can chose to believe want they want but the truth is that the future will tell if it's a ponzi scheme or not. Like on 👉this thread, it let us know that not everyone can love Bitcoin, there are also haters.