Why Bitcoin Is Not a Ponzi Scheme

All the proof Bitcoin critics choose to ignore

Photo by Andrea Piacquadio from Pexels

As a newly minted Top Writer on Medium in the Bitcoin topic, it makes sense for me to write my next article about Bitcoin.

So, let’s cover a controversial topic within Bitcoin and cryptocurrency circles.

Bitcoin is a Ponzi scheme.

This is what many outsiders—and even crypto insiders—are saying about the revolutionary digital currency.

But is Bitcoin really a Ponzi scheme?

Before we answer that question, let’s first look at what a Ponzi scheme is.

Characteristics of a Ponzi Scheme

All Ponzi schemes have these primary characteristics:

• Unregistered Investment Scheme
• Excessively Consistent Returns
• Complicated and Secretive Strategy
• Low or No Risk Involved
• Guaranteed High Return
• Hesitation for Paperwork
• Unlicensed Seller or Schemer
• Difficulty Cashing Out Investments and Returns

In a Ponzi scheme, there is the promise of high returns. Which excites investors to invest…