Post
Topic
Board Bitcoin Discussion
Re: The Real Reason China Banned Exchanges? Cryptocurrency is a Ponzi Scheme
by
Xavofat
on 10/09/2017, 10:23:02 UTC
Second, if you don't understand exactly what a ponzi scheme is don't even bother reading any further.
Ponzi scheme
ˈpɒnzi/Submit
noun
a form of fraud in which belief in the success of a non-existent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors.

To clarify for you:  Bitcoin is not an enterprise, nor an investment program, nor does it pay returns, nor do people actually get "paid" returns - they just hold an asset that increases in value.

Bitcoin holds no characteristics of a Ponzi scheme.  By your logic, gold is a Ponzi scheme, but it simply isn't.
Then we've got people like Roger Ver, Jeff Berwick, Andreas M. Antonopoulos touting Bitcoin as the savior of humanity, which not only convinces more people to buy in, but also hold.
You're right.  They're private individuals encouraging people to hold an asset class.

So if someone promotes buying gold as a safe haven, does that make gold a Ponzi scheme?

It doesn't matter if the price is fueled by people buying and holding or by market manipulation.  You simply do not understand the basic meaning of a Ponzi scheme.