Is bitcoin just a glorified ponzi scheme?

[o48o]

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

Imagine trying to compare Bitcoin to something as vile as Trump.

Other one is actively looking for praise and insulting others, giving crazy statements, costing his tax payers millions of dollars by golfing and being convicted sex criminal.

Other one is a protocol.

If you want to compare bitcoin to something people hate, at least compare it to something that's not worth hating of what it does. Like another protocol ( NFT would be a good example ). It might seem worthless to you, but it's still just a protocol that's doing not actively doing anything against you.

People hate things for several reasons and some of them are scams and grifters that are easier to understand.

[uneng]

Ponzies are built around non-existent products or services. Ponzi scammers solely share money from new investors with the new ones, while claiming they are running a company of investments, services or something like that. Regards Bitcoin, we can see it's a real product (a currency or asset) with real and practical usage, besides being limited in number of coins available. Its price is based on its current valuableness for the market, so we can conclude Bitcoin is being really useful right now, and thankfully it has been being in a progressive line since its creation and launchment.

The fact there isn't a central authority behind Bitcoin has been a major factor to encourage trust and confidence from investors along the time. If it was a centralized currency, I don't think we would have reached the current stage we did, and in positive case, only then I would be pretty suspicious about Bitcoin being a ponzi, because the high demand for it wouldn't make sense on that context.

[Ever-young]

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.

Some people just don't throw stone to cause havoc some people don't actually know the difference between a ponzi scheme and Bitcoin, some just had about the word ponzi and also about Bitcoin but have not made out their time to learn about both terms, it's not surprising to be but it's shameful that someone on the Internet space will not know their stand on how Bitcoin works and what sperate it from ponzi, this misconception most times is as a result of how someone who want to drag their friends to invest in Bitcoin introduce the technology to others tagging it as a get rich quick asset which is exactly a slogan for ponzi.

[Ucy]

Bitcoin behaves a bit like stock, though it's far greater. It somewhat depends on high patronage of its products, which is contained in the Bitcoin system, to increase in price. And it's highly valuable, almost as important as a Nation (qualifies as a Cyber Country) or a Global community with a currency, and other  very important features that are difficult to change, such as decentralization, transparency, trustlessness, consensus/governance with low barrier to entry, anonymity/privacy, immutability, censorship resistant, permissionless, deflationary currency, etc
Just imagine how much a  Nation with fair rules that are hard to be broken or change would be worth.

Without these values and features it would be worth less.

But ponzi has little to no values as foundation to stand on, which is why it's unsustainable

[Zoomic]

I think bitcoin has passed the stage of several accusations or allegations against it. We have heard accusations that bitcoin is a bubble that will burst but till today, bitcoin is still strong and growing.
The insinuation that bitcoin is a Ponzi Scheme didn't start today, but unlike other Ponzi Schemes, bitcoin has refused to crash.
The early commers of a typical Ponzi Scheme used to exit the system, making the system to crash on the new investors. But in the case of bitcoin, Satoshi is still holding his bitcoin earnings and I am not sure he is selling any moment.
So, we need to dismiss the idea that bitcoin is a ponzi scheme and embrace the decentralization that bitcoin brought to us

[Fiasem20]

Bitcoin is not a ponzi scheme,those set of people who consider Bitcoin a glorified ponzi scheme should do their own research.From my research this is what a ponzi scheme mean;A Ponzi scheme is considered a fraudulent investment program. It involves using payments collected from new investors to pay off the earlier investors. The organizers of Ponzi schemes usually promise to invest the money they collect to generate supernormal profits with little to no risk.So from my research I can draft out facts that Bitcoin isn't considered as a ponzi scheme;
1.Ever since the inception of Bitcoin has it been considered as a fraudulent investment program?No
2.Has bitcoin ever collected payments from new investors to pay off earlier investor?No
3.Has Satoshi Nakomoto ever promise to invest the money he collect to generate supernormal profits?No

[Questat]

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.

Absolutely. Not all of us can fully recognize what is bitcoin all about, what is its main reason of creation, and how it can bring us life’s advantage in the end.

Also, just like bitcoin, not all of us know exactly what is a ponzi scheme is. It comes with too good to be true offers, until you end up falling on its trap and become their new victim.

[Stable090]

Bitcoin is not a ponzi scheme,those set of people who consider Bitcoin a glorified ponzi scheme should do their own research.

Some people do think bitcoin is a Ponzi scheme thats why they don’t want to invest in bitcoin, why some know that bitcoin is not a Ponzi scheme, but they don’t just like bitcoin, and they decide to say bad things about bitcoin. No matter what you tell people that have this kind of mindset, they are always difficult to convince, so anyone that says bitcoin is Ponzi scheme, if I try to explain, and I notice that am not getting the response which am suppose to be getting, or they are not ready to listen to me, am just going to ignore them, I know not everyone will be interested in bitcoin.

[skarais]

~~~

Some people do think bitcoin is a Ponzi scheme thats why they don’t want to invest in bitcoin, why some know that bitcoin is not a Ponzi scheme, but they don’t just like bitcoin, and they decide to say bad things about bitcoin. No matter what you tell people that have this kind of mindset, they are always difficult to convince, so anyone that says bitcoin is Ponzi scheme, if I try to explain, and I notice that am not getting the response which am suppose to be getting, or they are not ready to listen to me, am just going to ignore them, I know not everyone will be interested in bitcoin.

Bitcoin is definitely not a ponzi scheme, but some people will probably think it is. We never need to explain anything to those who do not believe in the innovation of bitcoin, so leave them with their assumptions and live in peace. Sooner or later these people will probably change their attitude towards bitcoin, just like the government's attitude towards bitcoin which has so far begun to soften even though it has not yet fully legalized bitcoin as a legal tender.

I never want to argue with those who have negative assumptions about bitcoin. People who don't believe in bitcoin are basically just rejecting its growth, but they realize that bitcoin really has the power to grow day by day and get great interest from investors.

[r_victory]

Much of this is due to the fact that Bitcoin and other cryptocurrencies are at the center of many scams that have been widely publicized lately. Unfortunately, those who are unfamiliar with them or have abstract information about them end up believing that they only serve this purpose. Many governments and analysts also contribute to the propagation of this negative view of Bitcoin.

[summonerrk]

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.

When my colleagues at work start talking nonsense about Bitcoin being a big financial pyramid, I can hardly stop myself from laughing out loud in the office.
We all know the signs of financial pyramids very well and only a person who has absolutely no knowledge of how the blockchain works and what Bitcoin is can speak calling this digital work of art a financial pyramid. How many people are lazy, and it is easier for them to commit than to understand the issue and change their destiny.

[BITCOIN4X]

~Snip

When my colleagues at work start talking nonsense about Bitcoin being a big financial pyramid, I can hardly stop myself from laughing out loud in the office.
We all know the signs of financial pyramids very well and only a person who has absolutely no knowledge of how the blockchain works and what Bitcoin is can speak calling this digital work of art a financial pyramid. How many people are lazy, and it is easier for them to commit than to understand the issue and change their destiny.

You should laugh at that, but forget it, there are many more important things than laughing at their stupidity.
I would just leave them with the wrong assumptions about bitcoin rather than bother giving them an explanation. One day they will realize what bitcoin is and why they rejected it in the first place, so just leave them to their stupidity. There is no time to argue with those who reject bitcoin's innovation, they don't believe in bitcoin, but I'm sure they will definitely learn with time.

Someone says bitcoin is haram because of its use in gambling or some other things. They know fiat is also used in the same case, but they never say fiat is haram. If you find people who have thoughts like that, then it's a good idea not to argue.

[HONDACD125]

I agree with some of the people here, and I also believe that there is absolutely no point in trying to convince someone that Bitcoin isn't a scam or Ponzi scheme because if they have a device with an internet connection since they are online and posting and asking questions, they could use that same device to do some research and study about the system itself instead of making baseless and nonsensical statements and expecting people to believe you or agree with your stance when your stance is merely built on gut feelings and thoughts produced in the air without any knowledge or understanding.

It's our loss if we waste our time on such people; we are not going to get anything if they learn and accept that yes, Bitcoin is a good thing and it isn't something bad, so why should we waste our time on them? Wasting time on people who show genuine interest and actually want to learn is not bad because you know that they are hungry for knowledge and information and aren't hungry for controversies and attention.

[BenCodie]

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.

I agree. The truth is that anyone can comment on crypto and unfortunately those who are not smart enough can get caught up in comments or information that is misinformation.

[summonerrk]

Bitcoin has updated its historical maximum reaching almost 112,000 dollars and we all know that now we will hear about it in the news, that is, it turns out to be a funny situation that the society that condemns the blockchain and does not believe in Bitcoin, considering it an incomprehensible or stupid technology that only speculators use, will talk a lot about how they regret very much that they did not buy Bitcoin before.
And this happens all the time. And I hear from colleagues everywhere that now Bitcoin will die and there is no point in buying it. But recently the price was 74,000 ...

[Fiasem20]

Bitcoin has updated its historical maximum reaching almost 112,000 dollars and we all know that now we will hear about it in the news, that is, it turns out to be a funny situation that the society that condemns the blockchain and does not believe in Bitcoin, considering it an incomprehensible or stupid technology that only speculators use, will talk a lot about how they regret very much that they did not buy Bitcoin before.
And this happens all the time. And I hear from colleagues everywhere that now Bitcoin will die and there is no point in buying it. But recently the price was 74,000 ...

Bitcoin is the most talked about digital asset in world,an asset that was condemned by critics and governments has now become a valuable asset nobody taught it would be.There are lots of skeptical people that should be enlightened on the historical data for Bitcoin prices,we all know bitcoin started from the scratch,but currently it's no longer in the scratch.The level at which bitcoin has attained I don't think some set of persons will consider it a ponzi scheme because the difference is clear.The statement that annoys me the most is when those critics out there comment on the bitcoin that it will die soon,if Bitcoin will die soon,it would have died from it's early stage but it has survived till date so their opinion is useless,if only they know the value of 1BTC they'll keep their mouth shut.

[OgNasty]

As others have stated, I think that Bitcoin's transparency doesn't exactly fit what is typically seen in a Ponzi Scheme.  However, with no earnings, I also see why people make that allegation.  This is probably why the community pivoted to gold.  The same things that make Bitcoin a Ponzi-like asset also apply to gold.  So I'm ok with someone calling Bitcoin a Ponzi Scheme so long as they admit that gold is also a Ponzi Scheme.  Where is the distinction though.  Are companies that don't make a profit Ponzi Schemes?  Is the Government a Ponzi Scheme if they don't have a balanced budget?

[dunfida]

“Guaranteed high returns”
-There's no that guarantee, for those who had been saying that there's a guarantee and asking for some fund management or investment hedge then you are simply dealing up with scammers.
Although, when we do speak about potential profits then this is where Bitcoin could give it out but of course you should set your expectation low and invest on what you can afford to lose.

“Dependent on new investors”
-This is a free market. You can buy and sell all you want with your coins and no one will be stopping you. We cant be able to deny that price or value will be basing up
with the demand and thats normal economics subject. If you do know on how ponzi works then you do know the answer.

“Falsified documents”
-Its open source, you might not be able to see a paper but everything could be seen and check out.

[madnessteat]

I agree with some of the people here, and I also believe that there is absolutely no point in trying to convince someone that Bitcoin isn't a scam or Ponzi scheme because if they have a device with an internet connection since they are online and posting and asking questions, they could use that same device to do some research and study about the system itself instead of making baseless and nonsensical statements and expecting people to believe you or agree with your stance when your stance is merely built on gut feelings and thoughts produced in the air without any knowledge or understanding.

It's our loss if we waste our time on such people; we are not going to get anything if they learn and accept that yes, Bitcoin is a good thing and it isn't something bad, so why should we waste our time on them? Wasting time on people who show genuine interest and actually want to learn is not bad because you know that they are hungry for knowledge and information and aren't hungry for controversies and attention.

I think that every year there are fewer and fewer people who think that Bitcoin is a Ponzi scheme, but they are still there so I think it is important to inform them that they are wrong in their conclusions about Bitcoin. No one would launch an ETF on a Ponzi scheme and in my opinion this is one of the easiest explanations for those people who don't want to even superficially learn about blockchain technology and still think Bitcoin is a Ponzi scheme.

[qwertyup23]

I think you have to fully understand the difference between a ponzi-scheme and bitcoin.

When we mean by a ponzi scheme, you investing into a non-existent business with promises of having relatively high returns in the process. They offer ridiculous and absurd amounts of interest with a little investment to attract more users to invest in their so-called "business." On the other hand, BTC is the father of crypto- the progenitor which started everything that we need to know about the blockchain technology.

In other words, you are investing into air in ponzi-schemes; while you are actually investing into something in BTC. While both have no tangible and physical item, BTC has a built-in technology where its price increases as the demand decreases.

If ever you think that ponzi-schemes and BTC are the same just because some have profited then you might as well compare them to other investment platforms that were profitable.