Not all ponzi schemes are dysfunctional, some are sustainable in the long term. For instance if you have an asset that appreciates over time and represents tru

Not all ponzi schemes are dysfunctional, some are sustainable in the long term. For instance if you have an asset that appreciates over time and represents true value (say because it generates more income over time) then you can't realize that appreciation if there is no-one to buy that asset from you. That is the marginal effect of having less people.