Is bitcoin just a glorified ponzi scheme?

[SuperBitMan]

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.

Yes you are correct odolvlobo, there's no connection between Bitcoin and Ponzi scheme anyone saying Bitcoin is a Ponzi scheme don't understand how Bitcoin works, in a Ponzi scheme you will be told to invest and after you invest you will be receiving your return weekly or daily but Bitcoin investment is totally different you invest and you keep holding till you see that it has gotten to a price you wish them you can sell and make your profit, in Bitcoin investment you are the one doing everything yourself and you are the one to know when the profit is okay for you to take no second party.
I have been scammed before through Ponzi scheme, someone told me about an online investment platform and when you invest you will get profit every 3 days not knowing is a scam I invested and after 2 weeks they started paying me the profit and then I decided to double my profit and that is where I started having issues and I lost everything.
Bitcoin is not anything like Ponzi scheme.

[Yaunfitda]

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.

It's because during the early days of Bitcoin, there were a lot of didn't understand it and so they claim that it was similar to Ponzi scheme or even to Tulip Bubble. But we have both disproved that already as Bitcoin can't be compare to them. I mean if the tulip mania, it was burst and never comeback, as compare to Bitcoin wherein every 4 years we will get into a point wherein there is a new all time high. As for Ponzi scheme, it's obvious that we are trading here, others sell, and then on the other part of the globe, there will be buyers that will win and make some money, and on the other hand those who sold might have their reasons and they could comeback again and re-buy. Which is very far and different from a definition of Ponzi or pyramiding scheme.

[henry_of_skalitz]

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.

It's because during the early days of Bitcoin, there were a lot of didn't understand it and so they claim that it was similar to Ponzi scheme or even to Tulip Bubble. But we have both disproved that already as Bitcoin can't be compare to them. I mean if the tulip mania, it was burst and never comeback, as compare to Bitcoin wherein every 4 years we will get into a point wherein there is a new all time high. As for Ponzi scheme, it's obvious that we are trading here, others sell, and then on the other part of the globe, there will be buyers that will win and make some money, and on the other hand those who sold might have their reasons and they could comeback again and re-buy. Which is very far and different from a definition of Ponzi or pyramiding scheme.

Bitcoin always comes back no matter the case, because it's not dependent on those who think well or badly about it: it just continues to move forward and achieve new heights, as it should be.

[suzanne5223]

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.

I agree that Bitcoin discussions and activities should always be a high priority in every setting, but people have different points of view, and there's always room for misconception at some point.
Based on my point of view, the OP carefully chose his/her words, so s/he enlightened the words with a different color to avoid a misconception about his/her stance on the topic discussed.
That's why I said you don't read what s/he said carefully.

[tread93]

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.

Lol, some people just hate bitcoin the way that they hate Donald Trump. The thing is that the more people hate Trump and Bitcoin the more Trump and Bitcoin continue to dominate and I mean completely dominate. It's even neater to watch the two in tandem just absolutely crushing it on every level and scale

[Kryss191]

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.

It's because during the early days of Bitcoin, there were a lot of didn't understand it and so they claim that it was similar to Ponzi scheme or even to Tulip Bubble. But we have both disproved that already as Bitcoin can't be compare to them. I mean if the tulip mania, it was burst and never comeback, as compare to Bitcoin wherein every 4 years we will get into a point wherein there is a new all time high. As for Ponzi scheme, it's obvious that we are trading here, others sell, and then on the other part of the globe, there will be buyers that will win and make some money, and on the other hand those who sold might have their reasons and they could comeback again and re-buy. Which is very far and different from a definition of Ponzi or pyramiding scheme.

If Bitcoin’s a Ponzi, it’s the only one where no one’s in charge and the founder ghosted a decade ago. Try pulling that off with a pyramid scheme.

[X-ray]

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.

It's because during the early days of Bitcoin, there were a lot of didn't understand it and so they claim that it was similar to Ponzi scheme or even to Tulip Bubble. But we have both disproved that already as Bitcoin can't be compare to them. I mean if the tulip mania, it was burst and never comeback, as compare to Bitcoin wherein every 4 years we will get into a point wherein there is a new all time high. As for Ponzi scheme, it's obvious that we are trading here, others sell, and then on the other part of the globe, there will be buyers that will win and make some money, and on the other hand those who sold might have their reasons and they could comeback again and re-buy. Which is very far and different from a definition of Ponzi or pyramiding scheme.

This. Even today there are people who still thinks bitcoin as tulip bubble.

Truth is, it isn't. Bitcoin has its use and being trusted by people across the world as a currency even can become a hedge against inflation and store of wealth.

The people who keep saying that bitcoin is a tulip bubble don't know what they're talking about. They honestly should just learn the use case and read the bitcoin's whitepaper sometime, it'll be life changing.

[EarnOnVictor]

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.

I don't buy your idea, there is sense in no sense at times, so blame no one entirely.

We may try to find points for Bitcoin not being a Ponzi scheme for many reasons, but just like stocks and others, including Bitcoin, is it not the people's investent that they designed for A to pay B? Bitcoin is not different if they argue it out. The only difference is that the government assented to its modality in the financial market.

I put it to you today in stocks/shares, if all shareholders are to be given back their money, will they all receive their money? Certainly not! This is the same with Bitcoin if the truth be told. It is the HODLers who persistently sustain the system.

[Satofan44]

This topic has been discussed too many times.

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.

You can waste away your whole life with such people and you may not get anywhere. Instead, you should focus on open-minded people only. Actually, stubborn people often know that they are wrong, they just refuse to admit it because they are cowards and have issues with their ego and self image.

Lol, some people just hate bitcoin the way that they hate Donald Trump. The thing is that the more people hate Trump and Bitcoin the more Trump and Bitcoin continue to dominate and I mean completely dominate. It's even neater to watch the two in tandem just absolutely crushing it on every level and scale

At least we get to have some fun at the expense of haters.

[mirakal]

If bitcoin was a ponzi scheme, isn’t the existence is already too long that until now it continues to give us unlimited profits? That is not the real picture of what a ponzi scheme is. Otherwise, it could have stopped 3-5 years after its existence and would have steal all the money from its investors. But what we are seeing right now is the total opposite, we are getting advantage from the market and bitcoin, instead of the market trying to take advantage from us.

[Obim34]

If bitcoin was a ponzi scheme, isn’t the existence is already too long that until now it continues to give us unlimited profits? That is not the real picture of what a ponzi scheme is. Otherwise, it could have stopped 3-5 years after its existence and would have steal all the money from its investors. But what we are seeing right now is the total opposite, we are getting advantage from the market and bitcoin, instead of the market trying to take advantage from us.

It's a shame people still doubt Bitcoin after seeing all that is happening. If we have to count scores why Bitcoin isn't a ponzi, starting from it's decentralized nature, what controls the market is supply and demand as we know other related activity that can impact demand of Bitcoin like news, FOMO this is by the way, secondly who created Bitcoin is no where to be found, no one knows if he is still alive, how then can project Bitcoin be frauded without anyone having access primarily to the blockchain, Bitcoin is not controlled by one individual.

[osasshem]

People who still takes or see Bitcoin as a ponzi scheme should ask and check around themselves, over the years, how many ponzi scheme platforms that stay or survived 1 or 2 years without folding and disappearing into thin air, but Bitcoin has survived for more than 15 years to my count and still triggering. Bitcoin is and has been recognized by top country leaders, used as a means of exchange of goods and services, trusted by big investors who are accumulating in huge amounts at a single purchase etc. So, anyone who still has the site of ponzi scheme on Bitcoin is not just part of digitalized system at all.

[Mrbluntzy]

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.

"Had I know" Is the last cry of a fool, that's how most of them will cry and regret why they didn't get into Bitcoin on time. For example, if a Bitcoin investor bought 1 Bitcoin today for $105k, by the time the person will be making profit in the next 10 years, that's if they hold till that time,  the people that call Bitcoin Ponzi today will be regretting by that time and they will say, "if they had known, they would have bought Bitcoin this year."  Like you said, it is our success thaat will open their eyes.

[GigaBit]

There is no guaranteed chance of making profit in Bitcoin investment. But if someone holds Bitcoin for a long time after knowing about its potential, then their chances of profit increase. If someone guarantees profit in Bitcoin investment, it will never be logical. Although the potential for profit in long-term investment in Bitcoin is very high, it can never be guaranteed. Those who do not have a complete understanding of Bitcoin are the ones who make various negative comments about it.

Since Bitcoin is now being used as a trading tool, the demand of investors may be a little less or more at any time. It is not that it will be destroyed if the price drops drastically. If what happens in the case of Ponzi schemes is considered in the case of Bitcoin, then it will definitely be a big mistake.

I can definitely say that all the people who still think of Bitcoin as a Ponzi scheme they lack knowledge about Bitcoin.

[john_egbert]

"Had I know" Is the last cry of a fool, that's how most of them will cry and regret why they didn't get into Bitcoin on time. For example, if a Bitcoin investor bought 1 Bitcoin today for $105k, by the time the person will be making profit in the next 10 years, that's if they hold till that time,  the people that call Bitcoin Ponzi today will be regretting by that time and they will say, "if they had known, they would have bought Bitcoin this year."  Like you said, it is our success thaat will open their eyes.

And then there will still be a portion of people going out of their way saying BTC is a ponzi.

It's a never-ending cycle of fear, FUD, and FOMO in the end.

[kotajikikox]

If bitcoin was a ponzi scheme, isn’t the existence is already too long that until now it continues to give us unlimited profits? That is not the real picture of what a ponzi scheme is. Otherwise, it could have stopped 3-5 years after its existence and would have steal all the money from its investors. But what we are seeing right now is the total opposite, we are getting advantage from the market and bitcoin, instead of the market trying to take advantage from us.

Unfortunately people really still do believe this. There are critics that are still convinced bitcoin will fall apart and collapse soon hence why every time the market dips they think it is finally the time that bitcoin will collapse but it never happens and bitcoin just keeps recovering back.

[freedomgo]

Unfortunately people really still do believe this. There are critics that are still convinced bitcoin will fall apart and collapse soon hence why every time the market dips they think it is finally the time that bitcoin will collapse but it never happens and bitcoin just keeps recovering back.

Some people might not believe in it, but what really matters is most of us know Bitcoin is legit, it wasn’t made to scam anyone.

Like they say, you can't please everyone... and maybe that’s the mindset we need to move on peacefully.

At the end of the day, if they don’t invest in Bitcoin, that’s their loss not ours. Don’t waste your energy trying to convince people who aren’t interested or already closed-minded. Let them miss the boat while we sail toward gains.

[finaleshot2016]

I don’t know why they keep telling that even though it’s technically proven and major countries are into Bitcoin. Just because it’s profitable as early investor doesn’t mean it’s a ponzi, there are bunch of business models and some investment things that is also profitable when you’re early but not ponzi. Also those who have invested late are even not prone to losing money especially if you’ve managed to spot some good position through fundamentals of trading. Also, bitcoin being decentralized is enough to debunk this kind of claims and you should prioritize learning ponzi first because it seems they don’t know how ponzi works.

[Ryu_Ar1]

If bitcoin was a ponzi scheme, isn’t the existence is already too long that until now it continues to give us unlimited profits? That is not the real picture of what a ponzi scheme is. Otherwise, it could have stopped 3-5 years after its existence and would have steal all the money from its investors. But what we are seeing right now is the total opposite, we are getting advantage from the market and bitcoin, instead of the market trying to take advantage from us.

Unfortunately people really still do believe this. There are critics that are still convinced bitcoin will fall apart and collapse soon hence why every time the market dips they think it is finally the time that bitcoin will collapse but it never happens and bitcoin just keeps recovering back.

They just want to heat up the atmosphere by throwing some arguments just for the excessive panic of those who do follow the fomo flow and are in bitcoin only for a short profit that makes them feel cheated by it.

I don't think we need to feel strange about things like this where when there is something that is indeed valuable there will definitely be pros and cons in it. But keep in mind in this case we must realize that things like this will only be a spice for bitcoin progress. The most important thing is how we keep our hearts firm and convince ourselves that indeed our choice to be / invest in bitcoin is the right thing.
We must be good at maintaining our mentality in this case because once you doubt then the possibility of you losing bitcoin will be very large to happen.

[hero_the_bossman]

I don’t know why they keep telling that even though it’s technically proven and major countries are into Bitcoin. Just because it’s profitable as early investor doesn’t mean it’s a ponzi, there are bunch of business models and some investment things that is also profitable when you’re early but not ponzi. Also those who have invested late are even not prone to losing money especially if you’ve managed to spot some good position through fundamentals of trading. Also, bitcoin being decentralized is enough to debunk this kind of claims and you should prioritize learning ponzi first because it seems they don’t know how ponzi works.

Yep. Ponzi is about profiting those who came up first into it - which clearly not the case with BTC, as it doesn't depend on whether you are an early investor or not, it's self-sufficient, and that debunks it all.