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Is bitcoin just another ponzi scheme?

Is bitcoin just another ponzi scheme?

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Asked by H.Donna, Last updated: Jul 24, 2020

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2 Answers

K. Keturah

K. Keturah

Answered Oct 21, 2019

Bitcoin is not a Ponzi scheme as most people believe it to be. Most of the time, when I check through the internet, I see different kinds of misinformation linking bitcoin and other cryptocurrencies as Ponzi schemes. I think the only thing that can bring more light to this misconception is by checking if at all there is any similarity between them. So, what is a Ponzi scheme? Ponzi scheme is a kind of investment you make with the promise that you will get double or thrice the amount you put into it.

Ponzi scheme is just a scam because you might end up not making anything out of it. But the subtle thing with Ponzi schemes is that only a few people will benefit from them, to make other investors think the investment is real. Bitcoin is not like this, you have total control over your money, and you can invest it on anything. Although you might also lose your money, the reasons for this are due to the volatility of most of these cryptocurrencies and the state of the market.

 

h. George

Government employee and a part-time content writer.

H. George, Copywriter, MA in English, California

Answered Feb 26, 2018

Some experts will tell you Bitcoins are just another Ponzi scheme but I do not believe that to be true. A Ponzi scheme is a scam that depends on new investors to pay the old investors. Once new investors stop investing, the scheme falls apart because there is not enough money to go around.

New Bitcoin buyers don’t provide money to old bitcoin buyers so Bitcoin investors don’t have to worry about there not being enough money to go around. Also, Bitcoin buyers do not have to be fooled into buying Bitcoins. In fact, Bitcoin buyers look for people who are willing to pay them with Bitcoins.

 

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