Is bitcoin just a glorified ponzi scheme?

[suzanne5223]

Anyone who says Bitcoin is a Ponzi scheme technically doesn't understand the concept, use case, and reason for its creation.
When people don't understand the reason behind something, they intend to act foolishly, and even do it with confidence, not knowing they are naive. An example is what we once saw, Michael J. Saylor, Larry Fink, etc. Who once said negative things about Bitcoin before, and later accumulated it when they understood its concept.
Whenever we see this type of statement, let's know it is just another statement from someone who doesn't know anything about how Bitcoin works.

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 technically don't read to understand the Op stance about the whole false statement, which s/he said someone claimed Bitcoin is a glorified Ponzi scheme.
The OP pointed out what makes a Ponzi scheme, and provided a Bitcoin definition, which stated something different.

[FortuneFollower]

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.

It's natural, really, to have people like that in any space: just like there would those that would want fiat to be entirely gone eventually.

[coolcoinz]

I've heard this years ago and tit looks like some of the narrative remained in the memory. As they say, nothing disappears in the Internet, right?

The attacks changed as bitcoin evolved. At first it was called a ponzi scheme, but once that was disproved they started calling it a bubble and a product of the CIA meant as a social experiment.
Then they changed the narrative into "it's never going to work, governments will not allow it" and finally said that it's bad for the environment, allows for money laundering and is used by terrorists.

Haters gonna hate while bitcoin keeps going.

In the end it's just a bunch of frustrated socialists who dream of redistribution of wealth that are doing it. It's the same people who hate when a kid is given an apartment or a car by his parents and when someone is smart enough to indicate a good investment.

[Ethan_Crypto]

Thank you for the post. Newbies should find it very helpful in debunking the idea that bitcoin is a glorified ponzi. I would also love to add that a ponzi doesn't offer any real value but bitcoin solves the challenge of cross border pay at very low fee.

[Mahiyammahi]

You are right but Bitcoin itself is not a Ponzi scheme but it cannot be denied as that many fraudsters use it to incident in a Ponzi style. There have been many cases of people returning money to their previous investors by promising high returns, offering referral systems, and bringing in new investors. Bitcoin is a transparent technology, but many are confused by the hype based scams that surround to it. So even if Bitcoin is not a scam, scams use it and that is the main problem for bitcoin

[batang_bitcoin]

I've dealt with people that thought Bitcoin is just another ponzi. Welp, it's hard to win against them because they're close minded even I did explained everything I can in my capacity and knowledge that it's not. Because if it's a ponzi then why its price is also decreasing when the market is bearish and when it corrects. They still don't acknowledge that and that's why I just let them go and let them look at the price right now. That this supposedly ponzi on their belief has already missed themselves the opportunity when it's quite low.

[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.

You technically don't read to understand the Op stance about the whole false statement, which s/he said someone claimed Bitcoin is a glorified Ponzi scheme.
The OP pointed out what makes a Ponzi scheme, and provided a Bitcoin definition, which stated something different.

I read and understood the whole thing, but my conclusion was driven from the fact that ops should have used a more convincing terms to express the situation, making is clear and understandable for us to know his own stance as regards to the topic at hands, Bitcoin discussion is of high priority most especially when Bitcoin is being compared to something as illegal as Ponzi which is a pour scam, so to make such statements one need to carefully choose your words to avoid getting caught up.

[cr1776]

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.

The sad thing is that more than 15 years later the same "arguments" are being used without any increase in knowledge.  Look at slashdot.org from July 2010 and you will see the same type of stuff being said.  The smugness everywhere by people who are clearly uninformed about many details is ridiculous given the amount of time that has been going on. 

I can kind of see from people like Buffett and Munger since they aren't known for their technical prowess and even if they did understand they are beholden to the authoritarian powers who don't want people out from under the thumb of government but a lot of these people should know better.  The fact that they don't indicates to me that they are willing to sell out themselves and their populations for power.

[tabas]

Newbies should find it very helpful in debunking the idea that bitcoin is a glorified ponzi. I would also love to add that a ponzi doesn't offer any real value but bitcoin solves the challenge of cross border pay at very low fee.

Ponzi's don't have real value because they're just money out of thin air and the valuation that they get is from someone's imagination. They don't have volatility unlike Bitcoin, it is a highly volatile asset that they are scared of investing. Many people fooled by this, they don't like Bitcoin because it is highly volatile while they are allowing themselves to be fooled by these ponzis that promises them returns at a higher rates. There is no such asset that guarantees them profits with daily interest or exact ones, they'll only realize that they have been scammed when they can no longer find the platform that they have invested in.

[Botnake]

It will always be part of a glorified ponzi scheme for those who don't understand bitcoin, and for those who take an easy money from bitcoin. Because believe it or not, no matter how we keep defending bitcoin from all its accusations, we can't change their own stance that bitcoin is just a big ponzi scheme, and that everyone should get rid of it.

However, for me that's fine. After all, we don't need to convince everyone to believe in bitcoin. Let our success become their eye-opener whether bitcoin is a big scam or not.

[Rustam Meraj]

Ponzi's don't have real value because they're just money out of thin air and the valuation that they get is from someone's imagination. They don't have volatility unlike Bitcoin, it is a highly volatile asset that they are scared of investing. Many people fooled by this, they don't like Bitcoin because it is highly volatile while they are allowing themselves to be fooled by these ponzis that promises them returns at a higher rates. There is no such asset that guarantees them profits with daily interest or exact ones, they'll only realize that they have been scammed when they can no longer find the platform that they have invested in.

You are correct and we know that Ponzi schemes do not have real value and they show fake price. They only work with using money from new people and pay to those who are early investors.
It is interesting how some people are worried about Bitcoin price going up and down much but they still fall for Ponzi schemes that promise them they will get much of money back for sure. This is showing that they do not understand what is risk. Ponzi schemes show that they are safe and stable but they always get fail when there are not enough new people for investing. Then everyone loses their money. Fact is that they are not open about how they work and promise returns that are too good and looks true should be big warning sign that many people sadly do not see until it is too late.

[tabas]

Ponzi's don't have real value because they're just money out of thin air and the valuation that they get is from someone's imagination. They don't have volatility unlike Bitcoin, it is a highly volatile asset that they are scared of investing. Many people fooled by this, they don't like Bitcoin because it is highly volatile while they are allowing themselves to be fooled by these ponzis that promises them returns at a higher rates. There is no such asset that guarantees them profits with daily interest or exact ones, they'll only realize that they have been scammed when they can no longer find the platform that they have invested in.

You are correct and we know that Ponzi schemes do not have real value and they show fake price. They only work with using money from new people and pay to those who are early investors.

Exactly. The profit that the investors get is from the new investors that pays in to the scheme. And if there is no new investor that will come in, then there is no payout or profit for them. That's when the pyramid collapses and all that have entered newly are also going to lose money.

It is interesting how some people are worried about Bitcoin price going up and down much but they still fall for Ponzi schemes that promise them they will get much of money back for sure. This is showing that they do not understand what is risk. Ponzi schemes show that they are safe and stable but they always get fail when there are not enough new people for investing. Then everyone loses their money. Fact is that they are not open about how they work and promise returns that are too good and looks true should be big warning sign that many people sadly do not see until it is too late.

They cannot move on to their past experiences with the ponzi schemes and treats everything like Bitcoin as a scam or ponzi. They don't study what they are entering and that's why they're mostly falling for another scam type of investments. That's why knowledge is important in investing and if they don't understand Bitcoin yet, it's okay to study and not invest quickly on it. But they should also treat the same with ponzi schemes because earning money without working on it is their ideal but it's not right thing to do.

[BenCodie]

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.

You are right and this is slowly becoming true with each year that goes by, though I would still say that majority of people let the noise in or are not self-sufficient enough to research and filter out noise themselves. This is why people follow influencers, and why scam statistics are still at extraordinary levels across every country. Progress toward being better informed is happening, but it sure is very slow from what I am seeing and reading.

[Cossyblack]

I am still surprised how some people can't spot a ponzi scheme,still finding it difficult to differential a ponzi scheme from a legitimate investment. I don't see why bitcoin should be seen as a ponzi scheme,besides Bitcoin operation is transparent,secured and reliable and have been acknowledged as the highest performing asset in the world, while it doesn't promise very high returns in a short time and have been running smoothly for15years. unlike ponzi scheme that requires a person to invest with a small capital for high returns in a short period of time and mind you,no ponzi scheme can operate and run smoothly for 15years,they will  certainly run out of funds to pay new members and would eventually crashed within a year or less,its all depends on their target.

However my points is that, Bitcoin doesn't come close to anything relating to Ponzi schemes. I believe people  connecting Bitcoin to ponzi doesn't understand how BTC works and are just ignorant to learn the basics about bitcoin. People with such mindset about bitcoin should be avoided because there words can be misleading if taken into thoughtful consideration.

[AbuBhakar]

I am still surprised how some people can't spot a ponzi scheme,still finding it difficult to differential a ponzi scheme from a legitimate investment. I don't see why bitcoin should be seen as a ponzi scheme,besides Bitcoin operation is transparent,secured and reliable and have been acknowledged as the highest performing asset in the world, while it doesn't promise very high returns in a short time and have been running smoothly for15years. unlike ponzi scheme that requires a person to invest with a small capital for high returns in a short period of time and mind you,no ponzi scheme can operate and run smoothly for 15years,they will  certainly run out of funds to pay new members and would eventually crashed within a year or less,its all depends on their target.

However my points is that, Bitcoin doesn't come close to anything relating to Ponzi schemes. I believe people  connecting Bitcoin to ponzi doesn't understand how BTC works and are just ignorant to learn the basics about bitcoin. People with such mindset about bitcoin should be avoided because there words can be misleading if taken into thoughtful consideration.

Based on my experience, people that are saying bitcoin is a ponzi scheme are often from "boomers" generation. They can't accept the fact that a digital currency has real-world value and utility. They only acknowledge fiat as a medium of exchange and a legit type of investment is only gold.

Bitcoin being used as a front also contributes to the ponzi stereotype. Scammers use bitcoin to attract uninformed people that investing to it can make them rich in a short amount of time.

Spreading proper bitcoin literacy could help eliminate the bad misconception. Some schools are teaching it now so in the future, that bad image could be gone if more people will be informed.

[fikrett]

You are right and this is slowly becoming true with each year that goes by, though I would still say that majority of people let the noise in or are not self-sufficient enough to research and filter out noise themselves. This is why people follow influencers, and why scam statistics are still at extraordinary levels across every country. Progress toward being better informed is happening, but it sure is very slow from what I am seeing and reading.

Also because crypto is relatively a new space - where people believe in nonsense that doesn't make sense once get a good grasp of main concepts needed to be safe and not fall for some of the scams pulled off.

[aoluain]

This is funny - its just yesterday when a friend who knows I am a bitcoiner said to
me that "Bitcoin is just another ponzi scheme".

I had to set him straight and started with the "nonexistent enterprise" definition
and explained while Bitcoin isnt physical but digital there are Developers, miners
and people verifying the network 24/7/365, its a very busy enterprise.

He was basing his belief on the idea that more people NEED to come into
Bitcoin in order to "strengthen" the system!

The OP is spot on!

[nemesis_incarnate]

This is funny - its just yesterday when a friend who knows I am a bitcoiner said to
me that "Bitcoin is just another ponzi scheme".

I had to set him straight and started with the "nonexistent enterprise" definition
and explained while Bitcoin isnt physical but digital there are Developers, miners
and people verifying the network 24/7/365, its a very busy enterprise.

He was basing his belief on the idea that more people NEED to come into
Bitcoin in order to "strengthen" the system!

The OP is spot on!

Bitcoin would work with or without new people, but everybody became so interested in it that it's natural that people keep getting into it: rightfully so.

[EarnOnVictor]

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

You shouldn't blame those who say Bitcoin is a Ponzi scheme, we only need to educate them more. Should we talk about the frauds that are going on in the name of Bitcoin and are well linked to a Ponzi scheme? Or should we talk about the way Bitcoin itself is structured that people mistake for a Ponzi? It takes more explanation to convince some people that Bitcoin is not a Ponzi scheme but a blockchain/investment/trading/payment network that is taking the world by surprise.

[hero_the_bossman]

You shouldn't blame those who say Bitcoin is a Ponzi scheme, we only need to educate them more. Should we talk about the frauds that are going on in the name of Bitcoin and are well linked to a Ponzi scheme? Or should we talk about the way Bitcoin itself is structured that people mistake for a Ponzi? It takes more explanation to convince some people that Bitcoin is not a Ponzi scheme but a blockchain/investment/trading/payment network that is taking the world by surprise.

Or we should ignore such people if they are too stubborn: after all, BTC is not for everyone, those who want to know more - they will try to make things up themselves properly.