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I know nothing about Elastic specifically, but... "Ponzi scheme" has a specific meaning. Many cryptocurrency projects appear to fairly closely fit this meaning
by danaris 4y ago
I know nothing about Elastic specifically, but...
"Ponzi scheme" has a specific meaning. Many cryptocurrency projects appear to fairly closely fit this meaning, while "for-profit business that's making year after year of losses and being propped up by VC funding" does not.
Not everything that's a very bad investment—or even outright fraud—is a Ponzi scheme.
- scarface74 4y agoWhat do you call when everyone who puts money into something are just doing so hoping to sell it to someone else before the party stops? BTW, the party has stopped for non profitable companies.
- danaris 4y agoThat sounds more like purchasing an asset you expect to appreciate, because you're actually selling it on to someone else. That's not the case in a Ponzi scheme, where you're expecting ongoing returns from your investment (which only come from suckering more people in).