Why Bitcoin looks worse than a Madoff-style ponzi scheme: Robert McCauley
https://www.youtube.com/watch?v=jRgYcHV2zd0
**Bitcoin is not a Ponzi Scheme**.
In a Ponzi scheme:
There is an “operator” — a central authority (one person, or a small group), a swindler.
The swindler receives money from people
The swindler promises investors that their money will be invested in some business venture with an expected high rate of return. That money is NOT invested. There is no money-making business venture. Any returns are paid from the swindled money.
The entire Ponzi Scheme is based upon a big, fat lie.
The Ponzi scheme can only keep going so long as new suckers arrive to put their money into it.
A Ponzi scheme cannot survive a “crash”.
A Ponzi scheme is illegal and immoral.
Bitcoin is legal, and honest.
Bitcoin has no central authority.
Bitcoin is purchased from other Bitcoin owners and/or multiple exchanges.
Bitcoin makes no promises about ROI.
Bitcoin is not, and does not pretend to be a “money making venture”; Bitcoin IS money.
Bitcoin has survived several crashes.
Bitcoin can keep going without any new investors.
Bitcoin goes up (or down) in price because of supply and demand in a genuine market.
Bitcoin is based upon truth, verified by mathematics: its blockchain is an immutable public record of every Bitcoin transaction ever made.
Cryptocurrency
