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Bitcoin FAQ (2019) 33 - Is Bitcoin a Ponzi scheme?








The Bitcoin official website(bitcoin.org) has a Bitcoin FAQ(Frequently Asked Questions), written around 2013, and some of the contents of this FAQ may have been obsolete. In order to help Bitcoin enthusiasts to understand Bitcoin (system) more comprehensively, our site will maintain a new and up-to-date FAQ on Bitcoin (system). In the content below, the content expressed by the “Knight” on the left side comes from the FAQ of the Bitcoin official website; the content expressed by the “Letters” on the right side comes from the opinions of some friends of our CEO, and is edited and reorganized by our editors. Tips: this article only states opinions of all kinds of people, and its content is NOT guaranteed to be correct, thus should never be considered as an investment advice or suggestion.

A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money, or the money paid by subsequent investors, instead of from profit earned by the individuals running the business. Ponzi schemes are designed to collapse at the expense of the last investors when there is not enough new participants.
Bitcoin is a free software project with no central authority. Consequently, no one is in a position to make fraudulent representations about investment returns. Like other major currencies such as gold, United States dollar, euro, yen, etc. there is no guaranteed purchasing power and the exchange rate floats freely. This leads to volatility where owners of bitcoins can unpredictably make or lose money. Beyond speculation, Bitcoin is also a payment system with useful and competitive attributes that are being used by thousands of users and businesses. [Source]
At the early stage of Bitcoin system, BTC was useful for many people, thus it was valuable then. At that time, BTC was not a Ponzi scheme. But today, the Bitcoin system is losing its use as a means of payment(See Is Bitcoin valuable? and Is Bitcoin really used by people?), which has little value now. The price of BTC is being manipulated and at a very high position. Those who have BTCs are constantly advertised BTC to deceive more investors to prevent their wealth from shrinking. The Bitcoin system has become a Ponzi scheme. In the Ponzi scheme of the Bitcoin system, those who hold many BTCs always want more people to buy BTC. Those with huge number of circulating BTC manipulate the illusion of rising prices to attract more people who do not know the truth to participate in speculation(See Is BTC already manipulated by someone?). In addition, most of the so-called blockchain media are manipulated by those who have a lot of BTC, and are frantically boasting the false Bitcoin consensus("BTC is the future worldwide currency") to brainwash the public, and are constantly creating all kinds of rich stories to attract the public to trick people to put more money into BTC to maintain the false prosperity of BTC. As such, the Bitcoin system has become a funds game that has nothing to do with its use value and must rely on the continued investment of subsequent people to prevent it from bursting. It is already tantamount to a Ponzi scheme. For more, see: Bitcoin value disputes series on this site.
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