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4 Simple Reasons Why Bitcoin Is Not a Ponzi Scheme
High returns don’t always equal a profitable investment
Tom Handy3 min read·1 hour ago--
Every time I publish an article on cryptocurrencies, I encounter someone in the comments section:
“Bitcoin is a Ponzi scheme.”
As an investor who has been in the markets for years and ghostwrites for fintech CEOs, I have heard this argument four different ways. It shows a fundamental misunderstanding of both economics and the definition of words.
I say this with a bit of humility that only comes from experience. I know what a real Ponzi scheme looks like, because I’ve been burned by one.
Years ago, I lost money in one of these scams.
I put my money into an online platform that promised double-digit returns every single month. Deep down, I knew it was a scam.
The high returns looked good, and I knew it couldn’t be legitimate. But I kept chasing that profit. Just as I was about to withdraw my capital, the platform shut down.
The website went offline, the account was locked, and I lost a couple thousand dollars. It was a painful, expensive lesson in my human greed behind the mechanics of a fraud.
