This is a ponzi scheme. First, someone who no one has ever heard of before announces that he has discovered a way to make money…Second, the individual claims that a particular market provides unexploited arbitrage opportunities. Something is selling too low…The individual who sells the Ponzi scheme makes money by siphoning off a large share of the money coming in. In other words, he does not make the investment
How is the government printing money that doesn't exist so that it can lend it to itself and 'bolster the economy' not a ponzi scheme?
I accept that bitcoin has some of the superficial attributes of a ponzi scheme, but then some of that's all part of the "network effect" it's more valuable the more people you get into it, denying it won't make the comparisons go away.
However, taking an objective view of government issued currency, that looks like MORE of a ponzi scheme than bitcoin does...
But since many many people don't have the first clue about what makes money, money, and how these systems work, explaining how arbitrary and contrived traditional currency is, engenders cognitive dissonance and you don't really get anywhere until it clicks exactly HOW MUCH of a ponzi scheme government fiat is, some people still think the dollar is 100% backed by gold for instance, or that every dollar of account in the bank is 100% backed by one of those printed paper promises.
