“All Crypto is a pyramid / ponzi scheme”
I wanted to write up a brief article about this to point people at when they inevitably parrot the uninformed ‘attack’ they heard from someone else on the Internet: “Cryptos are just ponzi schemes”. In my earlier article I tackled the silly notion that “only criminals use crypto”, so I wanted to specifically address the ponzi scheme angle.
Let’s start with the basics, or we have no basis for having a useful discussion. What is a ponzi scheme? According to Investopedia, a ponzi scheme is “a fraudulent investing scam promising high rates of return with little risk to investors. A Ponzi scheme is a fraudulent investing scam which generates returns for earlier investors with money taken from later investors. …
