Hello. I just entered the world of cryptocurrencies. Is it true that bitcoin, the oldest cryptocurrency is a pyramid or the so-called schamat ponzi?
Not bitcoin is not a financial pyramid. It may seem like that to people who have lost the middle because of their own stupidity. Bitcoin is a cryptovalent, which has several different functions. It allows users to make peer-to-peer transactions. It allows you to transfer funds from one wallet to another without intermediaries such as banks or financial institutions with low transaction fees.
By some investors, Bitcoin, like gold, is seen as a storehouse of value or alternative assets. Many people diversify their investment portfolio in order to keep as little money as possible in an inflationary fiduciary currency.
Others point to the speculative nature of Bitcoin. Bitcoin is a very volatile asset. Its fluctuations are frequent and strong, which is why investors try to make money from price increases. However, certain movements are unpredictable, people who do not take into account the high investment risk often lose their savings by making rash and ill-considered decisions.
Of course, there are also bitcoin-based scams, which are pyramids. You simply have to be reasonable and let yourself be tempted by a quick, big profit. If someone offers you big profits in a short period of time, take such a program under the magnifying glass and read the opinions on the Internet.
Bitcoin itself is not a financial pyramid, however, many platforms create Bitcoin-based financial pyramids, which are simply SCAMS. Since Bitcoin became popular and the so-called 'street' has become known about it, more and more fraudsters are trying to exploit this situation. They create platforms or programs that offer a quick income that turns out to be a simple fraud after a while. You must be always careful when choosing cryptocurrency platforms.
Bitcoin is not a financial pyramid, however, there are many fraudsters on the crypto market who try to extort funds from users on the pretext of investing in BTC or other coin, offering high unrealistic profits in a short time through their pseudo platforms.
Is Bitcoin a financial pyramid? Considering the idea and operation of this structure, absolutely not. There is no basis for pointing out the mechanisms associated with the operation of a classical financial pyramid.
Let's start with the mining itself. Currently, this topic is very outdated, because the vast majority of tokens are already present on the market. This makes the further mining of Bitcoin unprofitable. And what was it like at the beginning? Indeed, the first participants had much better chances to extract coins. However, it was connected with greater availability. The person entering the system invested the computing power of their computer to have a chance to get Bitcoin.
Nevertheless, every user had equal chances. Participants who later joined the system were less likely to dig out tokens, but this was related to a significant reduction in accessibility. The extraction scheme above answers the question of whether Bitcoin is a financial pyramid. Although there are some similarities, the basic criteria of the Ponzi scheme are not met. Therefore, we can conclude that in the area of mining, Bitcoin was not and is not a financial pyramid.