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Is Bitcoin a Ponzi scheme?

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  • Is Bitcoin a Ponzi scheme?

    We often see newbies coming in this field and often going for Bitcoins through mining or other ways, but they often feel confused to know whether Bitcoin is a Ponzi Scheme? So, I will like to tell them that Bitcoin is not completely bank able, but it’s definitely not Ponzi Scheme, but it’s a software and is mainly done online, it’s a sort of payment processor that more and more people are using to run their sites.

  • #2
    Bitcoin is not a business or investment scheme; it’s something we use for daily needs and like you put it and everyone considers it the same which is payment processor. The difference with Bitcoin is obviously to do with been a digital currency which makes it slightly risky and makes it move up and down, but that’s obviously not done manually, but it’s an automatic system that does that, so that’s why you can’t call it into PS category.

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    • #3
      Yeah, it’s not Ponzi scheme because it’s a payment processor and that can’t be Ponzi scheme. Also, if we are aware that BTC is officially on Forex market, so that’s why it’s not going to disappear overnight. Now, I use it for daily transactions while many use it for various reasons like Trading or those things, so it’s why it’s pretty popular and have growth massively over the past few years with reaching peak as high as 1100.

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      • #4
        I can’t really see why you could call it Ponzi scheme which to me seems suited to online business like HYIP and as such. Bitcoin is a digital currency and is not a business that’s done by one person and no one is controlling it apart from people, so no one can cheat or steal in that way. It’s crazy to even consider or compare Bitcoin to PS because it’s for fake and risky businesses, but it’s not business at all.

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        • #5
          Bitcoin is not any business or anything like that where you can call it Ponzi scheme, it’s a sort of stock that we can invest/trade but that’s nothing to do with Ponzi scheme.

          The simple way of Ponzi Scheme is where we can make double/triple money pretty quickly, but this is not what Bitcoin is, so there is no reason for us to call it anything like Ponzi Scheme, it’s just not going to work that way.

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          • #6
            No, it’s wrong to say Bitcoin as Ponzi scheme; it’s not that and is genuine way. I believe if we use this then we can really gain big, but if we are not careful then we can lose. The difference between Ponzi scheme and this is that, if it was Ponzi scheme then we might have seen it getting close and people getting scammed because it’s obviously run by single person, but that is not the case with Bitcoin.

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            • #7
              Bitcoin is not a Ponzi scheme, in which the earlier customers are paid from the money brought in by the latter customers! Bitcoin can at best be described as digital currency with no physical footprint and can be used for online transactions to buy & sell various goods & services.

              There are some merchants accepting BTC and if their number goes up, then we could see more usage of bitcoin. We can consider it another form of payment rather than completely replacing existing financial systems!

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              • #8
                That’s absolutely true Mirza, it’s true that the numbers of merchants are increasing with now so many places having Bitcoin as compare to some years back; it’s likely to continue on the same road come the future, so all will be very interesting how far it could go. It’s definitely not Ponzi Scheme because the model is absolutely different as you already mentioned that it’s taking money from one and giving it to other which is why it’s call Ponzi.

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                • #9
                  Most people don’t know what Ponzi scheme means. It’s sort of scheme which is fraud (obviously) and is run through confident where the company pays client from the investment that other clients do, so basically people who invest first get paid from latest investors’ money and when the money slows down, it’s where the foot is put down and all the money is stolen by owners.

                  So, it’s crystal clear that such thing is not what Bitcoin is. Rest, I don’t feel like explaining.

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                  • #10
                    Yeah people need to understand first what a Ponzi scheme really means, how it works and whom it benefits the most & causes losses to most! So when you are clear on this then you wound not find Bitcoin to be Ponzi scheme. Bitcoin scheme was started as an open source project! The whole mechanism is fully decentralized with no controlling authority, so there are no owners to do scamming. Usually it is the hackers or other bad guys that do the most damage.

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                    • #11
                      Bitcoin is not a Ponzi scheme as there is not a single owner or even a group who can scam people and run away with the money. Ponzi schemes are intended to cheat usually by operating fraud investment programs claiming higher returns in short time.

                      When their target to cheat is reached, then they will run away leaving investors with loss! But Bitcoin is different which is like a currency to make for payments and to invest. Usual risks caveat applies though!

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                      • #12
                        Not really, it can’t be because Ponzi Scheme is for things which require investment and pays from that to others, so that is what we all pyramid that runs in triangle and is termed as Ponzi Scheme, but that’s obviously not with Bitcoin. So, I will not be one to call it that and no one really needs to be calling it that at all. We need to make sure we understand the difference not just randomly pass out comments.

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                        • #13
                          Bitcoin is not a Ponzi scheme, period. People have already described it quite well on what & how Bitcoin works. Ponzi schemes are essentially fraud schemes whereby the owner or seller of such schemes aims to dupe people of money by selling them pleasant dreams!

                          But some of the people involved in transacting BTC or hackers might be frauds which make people look at BTC in a suspicious way. Hence the need for right information is required.

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                          • #14
                            How can Bitcoin be a Ponzi scheme? Such rumors are spread by those who don’t know anything about how Bitcoins functions and might do it on purpose! Hence the need to get the right information so that one can be clear on what they are getting into! When investing your hard earned money you must make sure all the risks and rewards are fully known so that you can come with a plan to make for regular money.

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                            • #15
                              Before calling Bitcoin a Ponzi scheme such people should do a basic search on what a Ponzi scheme means. Ponzi scheme is never a real investment and just a means to cheat people of their hard earned money by making promises of high returns in short time.

                              Now Bitcoin never promised to pay someone with profits later and there is no owner or controller as pointed out by few here. So the whole case of Bitcoin being a Ponzi scheme falls flat.

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