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The nature of ponzi schemes necessitate exponential growth, even if the doubling time can be made long, perhaps on the scale of years. This places a short bound
by yummypaint 6y ago
The nature of ponzi schemes necessitate exponential growth, even if the doubling time can be made long, perhaps on the scale of years. This places a short bound on how long they can last. The US has about 1/20th of the worlds population, so that's less than 5 doubling periods before you run out of new marks. Maybe an additional decade or two at best?
- paulpauper 6y agocompounded interest has exponential growth and is as risk free of an investment as one can find.
- yummypaint 6y agoThe key difference is that banks aren't ponzi schemes. They use your money to actually do things in the world to make a profit, and give you a cut in the form of interest. A ponzi scheme doesn't make any new money, it only redistributes money among its members. This is the fundamental reason they can never be sustainable, and require the majority of those invested to be relatively new to the scheme.