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The reality is that we need a new term than ponzi scheme to determine if we are willing to respect a financial model or not The state (us government) has made
by vmception 5y ago
The reality is that we need a new term than ponzi scheme to determine if we are willing to respect a financial model or not
The state (us government) has made it clear that there is no distinction it can stand behind anymore
sometimes earlier investors get paid out by newer investors
whether it’s a high yield investment program, a poorly run hedge fund, or the entire corporate bond market, or social security, or herbalife, or defi
The debate over the name of the payout system is no longer productive, as ponzi scheme - as a pejorative term - doesn’t tell you anything
- specialist 5y ago> need a new term than ponzi scheme "Fraud" works for me. All nascent markets are wildcat melees. https://en.wikipedia.org/wiki/Wildcatter https://en.wikipedia.org/wiki/Wildcatter Useful markets are eventually regulated. To save the market from itself, to calm down the townsfolk brandishing pitchforks and torches, to assert central control over a proven grift. Time will tell if all these crypto kittens prove useful for more than fraud.
- vmception 5y agoIt doesn’t work for me because it has a legal meaning applied retroactively Your proposal of using it would at best case simply dilute that word until it was no longer useful, and worst case open its users up to libel due to being a legal term