The bitcoin Ponzi scam that won't go away Engadget
The bitcoin Ponzi scam that won't go away Engadget
Top Cryptocurrency Ponzi Scams as of 2020 Cryptotapas
Pyramid and Ponzi Schemes Binance Academy
Bitcoin Is a Pyramid Scheme. Prominent Economist Explains Why
The Bitcoin ‘pyramid scheme’ continues to collapse
Bitcoin Core (BTC): A Pyramid Scheme? A Ponzi scheme? Multi-Level Marketing?
A pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products or services. As recruiting multiplies, recruiting becomes quickly impossible, and most members are unable to profit; as such, pyramid schemes are unsustainable and often illegal.
Pyramid schemes have existed for at least a century in different guises. The difference between a pyramid scheme and multi-level marketing is that multi-level marketing provides an actual product or service whereas pyramid schemes do not and only funnel the money up from recruitment costs.
While often confused for each other, pyramid schemes and Ponzi schemes are different from each other. They are related in the sense that both pyramid and Ponzi schemes are forms of financial fraud. However, pyramid schemes are based on network marketing, where each part of the pyramid takes a piece of the pie / benefits, forwarding the money to the top of the pyramid. They fail simply because there are not sufficient people.
Ponzi schemes, on the other hand, are based on the principle of "Robbing Peter to pay Paul"—early investors are paid their returns through the proceeds of investments by later investors. In other words, one central person (or entity) in the middle taking money from one person, keeping part of it and giving the rest to others who had invested in the scheme earlier.
[uncensored-r/Bitcoin] Debunking the myth that Bitcoin is a pyramid / Ponzi scheme
The following post by themetalfriend is being replicated because some comments within the post(but not the post itself) have been silently removed. The original post can be found(in censored form) at this link: np.reddit.com/ Bitcoin/comments/7mlx22 The original post's content was as follows:
12-22 17:12 - 'Bitcoin is a pyramid scam, ponzi scheme, Winklevoss, Chamath Palihapitiya, Satoshi Nakamoto probably desperately trying to sell off bogus BTC into real $USD before the total final crash' (en.wikipedia.org) by /u/Charbax removed from /r/Bitcoin within 2-12min
04-05 19:13 - '**Is bitcoin a decentralized pyramid/ponzi scheme?** / This is *not* FUD. I am genuinely interested. From what I can see, some people got rich, but not because goods and services of value were being created somewhere (as wou...' by /u/MrManHimself removed from /r/Bitcoin within 0-8min
''' Is bitcoin a decentralized pyramid/ponzi scheme? This is not FUD. I am genuinely interested. From what I can see, some people got rich, but not because goods and services of value were being created somewhere (as would be the case with stocks in a real company). People got rich because others hoping to get rich rushed in and pushed up the price. So it has basically been money flowing from the many to the few. And now there is little new money coming in, whence the daily panics here over prices. What do people think of the situation? ''' Context Link Go1dfish undelete link unreddit undelete link Author: MrManHimself
If you still think bitcoin is a pyramid or ponzi scheme simply because of the huge price moves, this analogy may help you understand.
The U.S. dollar is similar to Berkshire Hathaway stock (BRK.A (NYSE)) huge market cap, huge liquidity, percentage moves are minor. Bitcoin is similar to a penny stock traded on pink sheets. Low market cap, low liquidity, percentage moves are huge. But to take the analogy even further, we all know what happened to the share price of blockbuster as netflix rose to mainstream popularity.
11-24 05:32 - 'If something only has value if new people keep buying it in the hope it will keep going up in value, isn't that by definition a pyramid/ponzi scheme?' (self.Bitcoin) by /u/sgasgdsgbdsg removed from /r/Bitcoin within 42-52min
11-04 18:13 - 'Great post! Yes, when uninformed people just viscerally and reflectively spout to this day: "Bubble!!", "Tulips!!", "Ponzi/Pyramid!!", "Too late to buy!!", etc. that's the exact same thing people said when it hit ATH $1 in 2009...' by /u/readish removed from /r/Bitcoin within 1-11min
''' Great post! Yes, when uninformed people just viscerally and reflectively spout to this day: "Bubble!!", "Tulips!!", "Ponzi/Pyramid!!", "Too late to buy!!", etc. that's the exact same thing people said when it hit ATH $1 in 2009, then $10, then $100, now over $7,000 and will continue to say at $10,000, $100,000...and so on. Bitcoin growth is not linear, it's exponential. Everybody parroting: "The bitcoin bubble is about to pop" since 2009, don't know that bitcoin is a decentralized system with mathematically fixed, deflatioary and limited supply currency and its growth is [exponential]1 . So is not farfetched to say that it will be at 100,000 by 2020, since it came from less than $1 to $7,000 in less than 10 years, and it hasn't even hit the bottom part of the exponential ['S-Curve' of adoption] ([link]19 ). Check out this great 2017 MIT study: ["The Cryptocurrency Market Is Growing Exponentially"]2 . Patience [pays]3 , don't listen to the ["Expert Analysts on MSM"]4 . Bitcoin’s value derives from its current real uses (mainly for money transfers and remittances) its limited supply and scarcity (store of value) and its many potential uses. Also, behind the curtains there is a huge growth in the bitcoin ecosystem development that a regular folk can't see because it's ignored by the media. If you buy for day trading you may lose money, but if you hold long term, it has been proven you get nice ROI. And bitcoin has barely started, think of the Internet/email in the 90's. A decentralized technology that has a valuable use it's not going to disappear, even if a few tyrannical governments try to "ban" it.
The future economy will be totally digital and decentralized. Bitcoin is a worldwide-distributed decentralized peer-to-peer censorship-resistant trustless and permissionless deflationary system/currency (see Blockchain technology) backed by mathematics, open source code, cryptography and the most powerful and secure decentralized computational network on the planet, orders of magnitude more powerful than google and government combined. There is a limit of 21 million bitcoins (divisible in smaller units). "Backed by Government" money is not backed by anything and is infinitely printed at will by Central Banks. Bitcoin is limited and decentralized. Receive and transfer money, from cents (micropayments) to thousands:
Very cheap regardless of amount of $$$ (with coming 2nd layer apps).
Borderless (no country can stop it from going in/out or confiscate)
Trustless (nobody needs to trust anybody for it to work)
Privacy (no need to expose personal information)
Securely (encrypted cryptographically and can’t be confiscated)
Permissionless (no approval from central powers needed)
Instantly (from seconds to a few minutes)
Open source (auditable by anybody)
Worldwide distributed (from anywhere to anywhere on the planet)
Censorship resistant (no government can stop its use)
Peer-to-peer (no intermediaries with a cut)
Portable (easier to carry/move than cash, gold and silver)
Public ledger (transparent, seen by everybody)
Scalable (each bitcoin is divisible down to 8 decimals)
Decentralized (distributed with no single point of failure)
Deflationary (its supply goes down with time until reaching 21 million ever)
Immutable global registry (can’t be altered/hacked by nobody)
No chargebacks-No fraud ('push' vs' 'pull' transactions).
And that’s just as currency, Bitcoin has many more uses and applications.
Edit: Here are some sources for newbies:
Here is a good start: ["Introduction to Bitcoin" - Andreas Antonopoulos]5 Playlists on [Andreas own YT channel]6 Check out this great articles: ["What Gave Bitcoin Its Value?"]7 ["How do Bitcoins have value?"] ([link]20 ) ["Yes, Cryptocurrencies are Valuable"]8
Bitcoin [ELI5]9 Bitcoin [Resources]10 Bitcoin [ Infographic]11 . How to [buy Bitcoin?]12 Where to [buy Bitcoin list]13 Bitcoin ['Awesome Handbook']14 Excellent ['Crypto 101']15 by stos313 Where [to use Bitcoin list]16 by Bitcoin-Yoda Starter Guide ["Bitcoin Complete And Ultimate Guide"]17 . Who accepts Bitcoin? [List of Companies, Stores, Shops]18 .
Ponzi schemes and Pyramid schemes that are designed to fraud people are what cause heartache to many unassuming investors. Luring people into such frauds has been much easier in crypto as the concept of digital currencies and technology is still in its early stages and very few have the knowledge of how it all works. The bitcoin Ponzi scam that won't go away New tech, old MLM techniques. ... industry speak for companies that use pyramid structures of commissions and bonuses to encourage existing customers and ... Distinguishing bitcoin from ponzi and pyramid schemes. Bitcoin (BTC) is a digital currency. The bitcoin blockchain is the digital network that maintains an accounting record for every transaction of bitcoin moving between people, and this is updated every time a transaction is made. Bitcoin's ‘Cognitive' Pyramid. While there is no Ponzi-style mechanic in place for Bitcoin. It can be argued that there is some kind of intellectual structure within Bitcoin that can be regarded as a ‘Pyramid.' Satoshi Nakamoto had created a king of an intellectual pyramid from which knowledge of Bitcoin and its technology trickled down. The ancient Egyptians made pyramids to last forever. Wall Street’s pyramid schemes aren’t nearly as durable. Bitcoin, while not officially a product of traditional Wall Street, is a pyramid ...
Is Bitcoin a Ponzi Scheme? Is Bitcoin a Pyramid Scheme? Is Bitcoin a Bubble like Tulip Mania or Beanie Babies? ===== Thanks for watching! Don't f... In this video, let's review Ponzi Scheme, Pyramid Schemes, and Bubbles, to review what we need to know, and Let's Discuss! Market Overview: 4:20 The Bitcoin Market: 6:45 It appears that many out there have never before seen the model and design that is a Ponzi Scheme or Pyramid Scheme. Yes, both are different and at times can blend into one ugly thieving animal ... Bitcoin Ponzi and pyramid schemes do exist and if you fall prey to them you will suffer the consequences. In addition, bitcoins are a very new type of money. Because their value depends on how ... What is a Ponzi scheme and. pyramid scheme? What is the difference? And how do they related to cryptocurrencies? In this video we explore a little corner of financial fraud. Do you thing Bitcoin ...