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Bitcoin Is Not a Pyramid Scheme
It’s not a Ponzi scheme either.
A Ponzi Scheme is a fraudulent investment scheme based on the redistribution of funds invested in the scheme.
You invest 100 euros in my Ponzi, and I will pay you 10% with other investors’ money. Ponzis collapse when they run out of fresh money to pay the existing investors.
A pyramid scheme is different. Let’s take HerbaLife as an example.
HerbaLife doesn’t sell its supplements to end-consumers but to recruits who buy up the stock and sell it to people they recruit, who buy up the stock and sell it to people they recruit, who buy up the stock and sell it to people they recruit to…etc.
There’s no end-consumer in the pyramid scheme. It’s also known as a multi-level marketing scheme.
Bitcoin doesn’t work like any of these.
There’s no promised dividend like in the Ponzi scheme, and there’s no need to sell what you buy to never-ending recruits either since the price rises and falls based on demand, helping you earn a profit.
