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The definition of ponzi scheme is a scheme where dividends to early investors are paid using the investments of later investors. That's a significant difference
by kaffeemitsahne 9y ago
The definition of ponzi scheme is a scheme where dividends to early investors are paid using the investments of later investors. That's a significant difference from simply an appreciation in value. By your logic, precious metals could also be ponzi schemes.
- bandrami 9y agoPrecious metals have absolutely been operated as Ponzi schemes before (remember the dude who pump & dumped the silver market in the 70s?)
- guardiangod 9y agoAre you saying the silver market behaved as a Ponzi scheme? No. A person was using the silver market as a ponzi scheme vehicle, it doesn't mean the silver market itself was a ponzi scheme. Same as Bitcoin here. A devious actor could use Bitcoin as the product for a ponzi scheme, that doesn't mean bitcoin is a ponzi scheme as much as the tulip bulb market itself is a ponzi scheme.