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Ponzi schemes usually involve promises to get back X times the money after N time. And in terms of actual cash. So whoever runs the Ponzi scheme needs to keep it growing exponentially in order to create exponential payouts. Eventually, it will grow so large that it collapses.

With Blockchains, they are more stable, as there is no such guarantee. Many people choose to HODL instead, and this gives the coin some stability. As long as there is less interest in cashing out than people trying to cash in, the value is growing. And as long as the value is growing, people cash out.

For a Ponzi scheme with guarantees in terms of currencies not minted by the scheme creator, they are bound to collapse sooner or later. Blockchains could go on forever in theory. However, latter still requires more people to cash in than people to cash out. If there is enough people trying to cash out, maybe larger number of people will panic and cash out as well, leading to an avalanche like race to zero.

Both are united by the requirement for a "greater fool", just with Ponzi schemes, this greater fool is exponentially growing while with Blockchains it can grow linearly.




Bitcoin could be more compared to a national currency like Argentinian pesos. The value can go to zero as it is no longer accepted (people do not want it), but there is no inherited promise in the first place it goes up forever.

All it matters that it will stay more stable than other assets. And we know from economic history that assets tied to nations may disappear overnight, e.g. Cyprus.


Unlike pesos, or dollars, Bitcoins can't be printed for free.


And Bitcoin isn't backed by a country's economic output and their military.


And that's the beauty of it. It's strong enough by itself so it doesn't need military protection.


Trump wants to make the Fed, which is supported and defended by the biggest military on this planet, hoard bitcoin. It turns out you can buy politicians with money, and Bitcoin supporters have done just that.




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