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?
In my opinion Bitcoin prices are determined by supply and demand. Sometimes bitcoin prices go up and sometimes go down. That's the same with other investments, So this is not a ponzi scheme. Old investors can lose their money as well. Same with the stock market. If we call the Bitcoin ponzi scheme, then the stock market is also a ponzi scheme. So, I think bitcoin is not a ponzi scheme.