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The price of bitcoin has been a major topic for the year 2017. Many people are getting involved in bitcoin investment everyday. But surprisingly, some persons feel that bitcoin is just another ponzi scheme. Well here are some facts about bitcoin vs ponzi schemes.
SIMILARITIES BETWEEN BITCOIN AND PONZI SCHEMES
The very first thing that bitcoin vs ponzi schemes have in common is that, they are both driven by demand. For a Ponzi Scheme to stay alive, there has to be continuous inflow of people. Same is with bitcoin, the existence of bitcoin and the rise in price is no doubt dependent on public acceptance.
Another major similarity sit that, both ponzi scheme and bitcoin are not recognized by financial institutions and most government. The truth is, most governments are warning citizens against investing in bitcoin and ponzi schemes.
The third similarity is that investing in bitcoin and ponzi schemes is at personal risk. Ponzi schemes are not registered and so is bitcoin. Bitcoin and ponzi schemes lack legal recognition, so putting money into it is at personal risk as no one can be held responsible if you eventually lose that money.
DIFFERENCES BETWEEN BITCOIN AND PONZI SCHEMES
Bitcoin is a type of money while ponzi is just a platform set up to give high return of investment. For a fact, most ponzi schemes can use bitcoin as a means of payment.
Bitcoin is not pyramid in nature but most ponzi schemes are pyramid in nature. They use member one to pay member two. Bitcoin has monetary value while ponzi have no monetary value. Bitcoin as at the time of writing this post is worth somewhere above $12,000 but ponzi scheme have no such monetary worth.
While it is true that one can think of hundreds of ways to make bitcoin seem like a Ponzi Scheme, it is also very true that one can also think of thousands of ways to show that bitcoin is not a Ponzi Scheme.