I had arguments with my friends who are always tagging bitcoin with negativity. Today, we argued and I educated them on bitcoin and Ponzi scheme. To me Ponzi scheme is when developers takes money from new entrance to pay early birds,rinse and repeat until they raise enough and vanish. But bitcoin is not like that. Do you think I am right?
I think your reasoning is also quite standard, because: PonziThis is a loan model from this person's money to pay interest to others. That is, the borrower will make promises with extremely attractive interest rates, accompanied by live figures that have been very successful in this Ponzi model. Its origins start with businesses lawful business. But then because the business was not conducive to it, it turned into a Ponzi model and used fraudulent behavior.To pay extremely high interest rates to borrowers requires an increasing cash flow, meaning that the number of new investors will increase as well.