3 ms·
I'm not sure where you are getting "Pyramid scheme", most criticisms of crypto are that they are Ponzi schemes. The difference is that rather than money funneli
by jboy55 4y ago
I'm not sure where you are getting "Pyramid scheme", most criticisms of crypto are that they are Ponzi schemes. The difference is that rather than money funneling up to the top of the pyramid, in a Ponzi scheme an illusion of returns is created by redistributing newer investors money to existing investors, rather than from the underlying investments gaining value. See Madoff's great scheme.
There was a great article, probably lost in time, which explained how the dot-com crash of the 00s was basically the collapse of an internet advertising Pyramid, and a smaller collapse of a dark-fiber pyramid.
- Quindecillion 4y ago> I'm not sure where you are getting "Pyramid scheme" Really? Just google "bitcoin pyramid scheme" It's a very common criticism.
- sph 4y agoThe pyramid vs Ponzi scheme debate is just arguing semantics. They are variants of the same idea: that you constantly need fresh suckers to prop the scheme up. (Not saying that crypto is any scheme; because there is not one cryptocurrency and because it's a dumb oversimplification of the problem)