Post
Topic
Board Bitcoin Discussion
Re: Is Cryptocurrency One Big Ponzi Scheme?
by
kryptqnick
on 16/01/2019, 19:56:33 UTC
The basic underlying idea behind the use and creation of cryptocurrency is to present financial freedom to everybody no matter where you find yourself in this world. But the volatile nature of these digital currencies got me thinking, what if the whole idea of blockchain and cryptocurrency is just one giant Ponzi Scheme?  Within a short period of time, there have been about thousands of cryptocurrencies created. Majority of these digital currencies are either trying to solve problems of a particular cryptocurrency by presenting solutions they think can help improve financial freedom. This usually gets me wondering and thinking. If you don't agree with me on this, please share your thoughts... Grin Grin Grin
There is a definition of what ponzi scheme is, and cryptocurrencies just don't fall under it even if you try to put them there. For starters, in any Ponzi there's hierarchy. There are people who created it, early adopters and those who got involved by other adopters. While there is a dev team and buyers of tokens, when you as a holder of crypto A tell your friends about it, you don't profit from it at all. So what if your friend is now also holding crypto A? The price can go up or down, and it won't matter who invited whom when it comes to profits and losses. Moreover, most of normal cryptos are distributed in a very decentralized way, while in the Ponzi the main people have access to enough product to ensure control.