Is Bitcoin a Ponzi Scheme?
I have been against crypto-currencies since I first heard of them simply because they are Ponzi schemes pure and simple. They are the financial equivalent of the perpetual motion machines of the middle ages, not that there were any. Inventors were just trying to invent them before real science entered the picture.
At any rate a Ponzi scheme uses current inflows to pay “profits” to the earliest “investors” and the earlier you get in the more you make while the last one into the scheme finds he has no chair when the music stops.
The price of a single Bitcoin is currently well above $8,000 and as the accompanying graphic shows it is one of the biggest asset bubbles in history. It’s going to hurt a lot of people when the bubble bursts because the damage won’t be confined to the owners.