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Ponzi bitcoin

ponzi bitcoin

returns than the average market by recruiting new bitcoin cash bitcoin core members under the scheme and taking money from them in some form or other. Bitcoin founder never ran away with a big chunk of money Bitcoin founder, Satoshi Nakamoto never ran away with a chunk of Bitcoins. New users that join the Bitcoin network dont fund the older users with new money. Gavel image via Shutterstock). Bitcoin never asked you to recruit new people/investors under it Neither Satoshi or his whitepaper or even early Bitcoin holders went to recruit new people/investors for Bitcoin.

ponzi bitcoin

They were sold on the basis that. Bitcoins will be an alternative currency. In other words, this will be the money of the future. The coins will never be the money of the future.

They didnt cash out and get rich. They will dump their Bitcoins at a loss with the slightest sign of a downturn in price. Though inferior in raw performance than a system like Visa, the fact that these networks employ markets rather than specific cashflows for liquidity makes them superior for a criminal enterprise in that its a lot harder to prove a random, pseudonymous exchange transaction is part. Ponzi, but more often pyramid, schemes involve specific funds being given to a specific person with a specific expectation of a specific return; they are, to borrow a term from tax law, hypothecated, legalese for spoken for, and legal liability arises because it is simple. Why might policymakers want to include a financial-regulatory angle? So far, this structure and a lack of adequate legal tooling (or prosecutorial will) to penalize it has allowed promoters of thousands of cryptocoin schemes, some more legitimate than others, to avoid being labelled either as principals (as they might be with pyramid schemes). Something which is based on decentralized tech and is hard to stop or regulate will give birth to Ponzi schemes but that doesnt mean that Bitcoin is a Ponzi scheme.

I also gave away a lot of Bitcoins to people whenever I did talks in universities and the like, just small amounts that today would be worth 50 to 60 times its value. On the flip side, Bitcoin prices also fall rapidly and many people get burned due to their such speculative investment! And by this Im not talking about ho-hum enforcement of KYC/AML and securities laws like we can expect to see today. CoinSutra think it is very important for us to clarify this point and spread more awareness, which is also our motivation to write today. For us and many thousands of others, we are not waiting for exit.