Is Bitcoin a Pyramid Scheme With No Real Substance?

Or are you missing out on the dawning of a new financial epoch?

Jesse J Rogers
Compounding Interest Podcast
11 min readMar 21, 2021


Photo by @canmandawe on Unsplash

“But where’s it at?” asks my friend, a retired accountant who is a smart guy but watches a little too much Fox News. “You can’t even hold it, some guy just made it up. What, is it air, in the cloud somewhere!” He writes “Bitcoin” on a piece of paper and hands it to me. “Here, have a Bitcoin!”

The year was 2017 and Bitcoin (BTC) mania was in full swing. The price was probably around $10,000 back then. By 2018, the price had jumped to $20,00.

There were many people chasing the trend who bought in at the very top, only to see it crash down to $3,000 and the value of most of their investment evaporate.

Those who sold because of panic lost big. Bitcoin was dead, so said the experts on TV.

My friend wasn’t the only doubter who felt vindicated. Bitcoin has been declared dead more than 404 times so far, according to 99 Bitcoins.

But for those who held on even during the major dips, the rewards were great. Those folks have been rewarded for their faith by a tripling of their investment, meaning an annualized rate of return of around 45%.