Bitcoin is the opposite of a pyramid scheme from the point of view of Bitcoin miners. The Bitcoin protocol is designed like a cannibalistic arms race. Every additional miner prompts the protocol to increase the difficulty of mining. From a social point of view, Bitcoin is a pure market. The price of Bitcoins fluctuates based on market supply, demand, and perceived value.
yup thats pretty much a good explanation.
I have heard people tell me that
BTC is a pyramid scheme and it might
look like that to those who dont fully understand. The ones at the top
of the pyramid may look like those who were the early adopters.
Because the market is unregulated it can be manipulated but I would
have thought with over 16,000,000 coins in circulation it would be
difficult to directly manipulate by one person.?