Bitcoin is a Ponzi-like/pyramid scheme, economists on Yahoo Finance claimed
Since its inception and development up to now, BTC, as well as the cryptocurrency market, have always been entangled in a suspected scam or criminal tool. Even economists have classified Bitcoin as a Ponzi-like/pyramid scheme.
Why is Bitcoin considered a Ponzi?
According to Wikipedia, the Ponzi scheme is a trick to attract investors and pay interest to previous investors in cash from other investors. If you listen to this definition, you will see that BTC has nothing to do with Ponzi. Or at least completely different from Ponzi.
However, if you apply that model to the Bitcoin network, you will see the same point. Due to the inflationary pressure of block rewards, the Bitcoin network requires miners to invest capital in prices to maintain their current growth continually. The point that economists think that BTC is like Ponzi is that without new capital, the market would collapse. This point is like a pyramid scheme that would collapse if new investors stopped participating in the pyramid.
Bitcoin has always been the center of controversy for years
Again, Bitcoin continues to be attached as a scam or a Ponzi scheme. This time, Bitcoin was ‘honored’ to appear on Yahoo Finance in the crypto market column.
Source: Yahoo Finance
Tendayi Kapfidze – Lending Tree’s chief economist – recently mentioned Bitcoin. Kapfidze said that, whether the brand crypto host is an investment or at least speculative, he still thinks Bitcoin or cryptocurrency is a scam or follows the Ponzi model.
“You can only make money in the cryptocurrency market by taking what others put in. I think that this market does not bring any technological development or application of real value.”
Tendayi Kapfidze, Lending Tree Chief Economist | Source: CNBC
Peter Schiff, a prominent anti-government investor, has also spoken about Bitcoin. Schiff hates Bitcoin incredibly and has stated that BTC is only popular as a speculative asset, not a currency. Earlier, Schiff also said that as Google Trends showed, BTC is running out of new buyers to keep the Ponzi going.
AZCoin News believes that, whether many people, believe it or not, believe it, doubt it, or not doubt it, whether BTC is a Ponzi or not, this cryptocurrency has been very profitable as a speculative asset for many years. Not to mention that Bitcoin functions as a medium of exchange and is a long-term store of value.
Over the past decade, BTC’s price has risen sharply by 9,000,000%, making it the best performing asset of all time. That’s not to mention Bitcoin has seen these gains over ten years, relatively unrelated on a macro basis.
Even in the past year, BTC has risen 95%, far ahead of the stock market triple and other leading assets by tens of percent. This strong performance comes in spite of the 50% recession that has taken place since the peak of $ 14,000 set in June.
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