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?
No, Bitcoin is not a Ponzi scheme and is not a scam just like what others think. Ponzi scheme is an investment fraud which is somehow similar to Pyramid scheme that promises a large amount of profit to their investors. Ponzi scheme collects returns for older investors by recruiting new investors and they are using those investment money from new investors to pay older investors. That's how a Ponzi scheme run their business, which is very much different to Bitcoin, because bitcoin doesn't scam people.