I belive our community mostly have no doubts that there ARE some projects that qualifies as a ponzi. We know the rugpulls, the honeypots all those scams etc.
What seems important to be clarified is that Bitcoin and other trustable currencies don’t qualify neither as a scam or a ‘ponzi’. I’m gonna speak about Bitcoin but I belive this is also applies with other legitimate crpyto projects.
A Ponzi scheme can be described as a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors.
But Bitcoin doesn’t have promise guaranteed returns, nor does it require new investors to sustain its operation. The blockchains are working and allow anyone to participate/quit when they want!
If you own bitcoin you can verify that factually and cash out/trade for “fiat” any time you want. Bitcoin doesn’t promise you anything and doesn’t hold your funds hostage.
When it becomes hard to recruit new investors, or when large numbers of existing investors cash out, these schemes tend to collapse. But right now large majority of BTC HODLERS are still in profit and while it’s true that if everyone sold their bitcoin at once that it would collapse you could say that about stocks or real estate too. In conclusion Bitcoin’s value is determined by market demand, not by manipulative practices typical of Ponzi schemes.
Also I belive since Bitcoin operates on a decentralized network, meaning no central authority controls it, that disqualifies it as Ponzi schemes which are centrally managed!
So, my point is that crypto must be disqualified as a ponzi when it’s Market-Driven Value and doesn’t have a Central Operator.
I would love to ear your toughts on this!
submitted by /u/Extreme_Nectarine_29
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