Ponzi schemes are an unfortunate fact of modern life.
Named after Charles Ponzi, an Italian immigrant who ran a famous scam in the 1920s, a Ponzi scheme is a fraudulent investment scam where returns to earlier investors are paid using funds from new investors, rather than from legitimate profits generated by any underlying business activity or asset appreciation.
These schemes rely on a constant flow of fresh money to keep going. Eventually, when new investors dry up or too many people try to withdraw funds, the scheme collapses, leaving most participants with heavy losses. (See grok for more.)
Like many others, I am convinced that bitcoin is the greatest Ponzi scheme of the 21st century CE. It has no underlying productive activity and it needs a constant flow of fresh money from “bigger fools” to keep going. Continue reading “Bitcoin, the Brilliant Ponzi Scheme”
Atanu Dey : Life is a Random Draw 