All Ponzi scheme start with seed money

[OsaiEmma]

Why do you in the first place think Strategy would pull or is pulling a Ponzi? With them being a public US company it’s very extremely unlikely for that to happen…

I consider any scheme that pays investors using money derived from the investors' own capital, rather than from value created by providing a genuine product or service, to have the characteristics of a Ponzi scheme.

100% true. That's the definition of a Ponzi scheme, but is it what strategy is doing? I don't think so. Strategy Inc. does provide valuable service too. Besides, if they invest investors money in Bitcoin, is that a ponzi scheme? You mentioned that Bitcoin doesn't fit in that criteria; how does investment investors money in Bitcoin a ponzi?

They are not recycling the investors money by giving investors A's cash to investor B and on and on. They are investing it in Bitcoin and then redistributing value to shareholders through stock appreciation. I don't think this fits in with what a Ponzi scheme is.

[TheUltraElite]

Whether you like it or not is your choice but these are risky investments. A company buying BTC with the investors money and using the profit to give back what it has owned. Its similar to "give me your money, I will double it back".

I would never suggest someone to invest in such companies or buy their shares. Buying bitcoin is much safer instead, but people have a notion that since the BTC they are not directly buying, they are devoid of it the risks it pose, which is a fundamental mistake.

Any company will go down, the creators of the scheme may have left by then but your money will get stuck at some point.

[Taskford]

Whether you like it or not is your choice but these are risky investments. A company buying BTC with the investors money and using the profit to give back what it has owned. Its similar to "give me your money, I will double it back".

I would never suggest someone to invest in such companies or buy their shares. Buying bitcoin is much safer instead, but people have a notion that since the BTC they are not directly buying, they are devoid of it the risks it pose, which is a fundamental mistake.

Any company will go down, the creators of the scheme may have left by then but your money will get stuck at some point.

That kind of set up is really crazy because imagine the risk of the actions they have done. Also their investment model is actually not sustainable that's why its expected that everything will fall apart if bearish trend will happen.

But basically they are using that thing to lure people and the actual actions they have done is basically to pay the profit of people to new deposit will came on their scheme. But eventually later on that schemes will fall again, when there's no new investors will came or the operator of that model start to scam their depositors.

I think we are done with this era and to many warnings placed on internet. Better for people to learn from past mistakes done by other people so that they won't fall on this type of scams.

[SquirrelJulietGarden]

Whether you like it or not is your choice but these are risky investments. A company buying BTC with the investors money and using the profit to give back what it has owned. Its similar to "give me your money, I will double it back".

I would never suggest someone to invest in such companies or buy their shares. Buying bitcoin is much safer instead, but people have a notion that since the BTC they are not directly buying, they are devoid of it the risks it pose, which is a fundamental mistake.

Any company will go down, the creators of the scheme may have left by then but your money will get stuck at some point.

It's how people can be scammed easily because of "too good to be true" offers, they want to get rich easily, quickly without efforts of learning, managing risk, managing their money, so it's perfect chance for scammers to do their scam jobs.

Ponzi starts with money, it's definitely right because without money attraction such as "double your money for profit", there will be no people fall to Ponzi scams and become victims.

People have to know the most basic thing, if making profit is too easy like this, where is the money comes from, and if it is actually easy, all people globally would have been rich already. They only need to open their eyes, see the fact that there are the rich and the poor, so there is no easy get rich quick chances for everyone.

[purple_sparkles]

Whether you like it or not is your choice but these are risky investments. A company buying BTC with the investors money and using the profit to give back what it has owned. Its similar to "give me your money, I will double it back".

I would never suggest someone to invest in such companies or buy their shares. Buying bitcoin is much safer instead, but people have a notion that since the BTC they are not directly buying, they are devoid of it the risks it pose, which is a fundamental mistake.

Any company will go down, the creators of the scheme may have left by then but your money will get stuck at some point.

If we're talking only about buying bitcoin, then I also don't see much point in having a middleman between the user's investment and their bitcoin holdings. However, if someone is busy with other profitable activities and doesn't want to spend time learning about cryptocurrency exchanges, bitcoin, and everything that comes with it, then services like these can be very useful.

[Dr.Bitcoin_Strange]

Well, the way most ponzi (s) are being organized, investors or stakeholders will be told their their capital is being invested into a particular thing and that the returns will be made in a few months time or few weeks and then the organizers will use the money for their personal business while giving hope to the investors, after that given time is over, they will pay out investors probably from their own pockets and then encourage them to invest double and by so doing, they tend to gain trust and they repeat the cycle for about 2-4 time and probably on the 5th cycle when they have got more than enough investors, they will disappear with their money, but in the case of Strategy, I think everyone (her investors) are already aware of the circle going on, so they chose to take the risk and probably they can not hold the coins by themselves and so they decided to invest on strategy.

[puloweh555]

It's how people can be scammed easily because of "too good to be true" offers, they want to get rich easily, quickly without efforts of learning, managing risk, managing their money, so it's perfect chance for scammers to do their scam jobs.

Ponzi starts with money, it's definitely right because without money attraction such as "double your money for profit", there will be no people fall to Ponzi scams and become victims.

People have to know the most basic thing, if making profit is too easy like this, where is the money comes from, and if it is actually easy, all people globally would have been rich already. They only need to open their eyes, see the fact that there are the rich and the poor, so there is no easy get rich quick chances for everyone.

That's right. All Ponzi schemes are very easy to detect if we have knowledge and a mindset about crypto. Those who are easily trapped in Ponzi schemes are usually those with greed and a desire to get rich quick without effort. These two aspects are the main attraction of Ponzi schemes. Scammers exploit these two aspects with promises of unrealistically high returns.

So, the key to avoiding these schemes is to be critical and question them. If it's this easy to gain profits, why isn't everyone rich? Because, fundamentally, true wealth requires time, knowledge, risk management and discipline. There are no shortcuts. So, if the offer is too unreasonable it usually won't materialize, especially if investing through an intermediary in this case a company.