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?
Yes, You are correct, it is not a ponzi scheme. It´s different monetary scheme, yet not defined.
Things for You to consider:
1) Why is number of possible bitcoins limited with 21 millions?
2) Why are people rewarded with bitcoins in return of investing computing power? And even more importantly: why all people, who invest, dont get coins then?
3) Who wins the most if bitcoin is bubbled?
You can not tell, that bitcoin is ponzi or pyramid, although it has some elements from both. I would say, bitcoin is a fantasy, that has grown way too big and people now want to make use of it. Coin owners want bitcoin to grow again and believers think, there is a way to get rich by digging coins.
But guess what. There is one universal monetary rule, and if more people were aware of it, they could save a lot of money in long run. The rule is:
There is NO easy, risk free, good money, that is available for everyone.If money is easy, good and risk free, it is called
a heritage. But thats not available for everyone.
If money is good and available for everyone, its is called
an entrepreneurship. But thats not generally easy, nor risk free.
If money is risk free and available for everyone, it is called
a salary. But that money is not generally very good.
Do not invest in schemes, unless You are very very certain, they are in their initial growth phase.