Quote from: kvipcn on January 16, 2019, 04:06:08 AM

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

Technically Bitcoin is not a ponzi scheme any more than gold is a ponzi scheme. Participants are buying and selling Bitcoin in a free market, by agreeing on the price. That's how all transactions are made in all markets. Yes, many people have called Bitcoin a ponzi scheme. But this either is because they don't know what Bitcoin is, or they're implying that people are putting their money in to something that has no real value. But what defines the real value of something? Value is subjective.

Those other cryptocurrencies are about people who didn't buy Bitcoin when it was cheap and are trying to find a very cheap one now that will greatly appreciate.

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