Post
Topic
Board Bitcoin Discussion
Re: Understanding the Ponzi Narrative
by
pushups44
on 30/12/2021, 12:44:49 UTC

What is the best argument against the Ponzi scheme narrative?

In what ways are Ponzi schemes different from bitcoin?


Bitcoin IS a “Ponzi”, but a natural-occuring Ponzi, like Gold. It’s not a Madoff-style Ponzi. Bitcoin doesn’t have a centralized issuer who can run away with your money. Plus Bitcoin is transferrable, it is used for payments. IT IS MONEY.

Quote

How do they generate value differently?


Both Ponzis and Bitcoin rely on the free market, but Ponzis are scams, Bitcoin is not.

A Ponzi is something very specific that implies illicit activity. Bitcoin is not and should thus not be referred to as a type of Ponzi. As I pointed out elsewhere, there may be similarities, but there are also major differences.