Why Ponzi schemes are called "Ponzi"

Kimonoe

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Quote from: gantez on March 10, 2019, 10:39:21 AM

Quote from: Freedom24 on December 15, 2018, 10:59:00 AM

This must be stopped, pension funds must come from personal funds and awareness, not other people's funds. There must be someone, maybe a social activist or even someone in the government who are aware of this and maybe something must be sacrificed for this.

Is pension also working as ponzi?

I was thinking pension is some percentage of money deducted from worker's salary and saved for the worker plus the percentage coming from the employee, paid to the worker at retirement.

I think it's different, with pension funds being deducted from salaries, not harming others. as far as I know the Ponzi scheme, in the end there will be people who are harmed, but for those who follow it in the beginning it will still be profitable

gantez

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Quote from: Freedom24 on December 15, 2018, 10:59:00 AM

This must be stopped, pension funds must come from personal funds and awareness, not other people's funds. There must be someone, maybe a social activist or even someone in the government who are aware of this and maybe something must be sacrificed for this.

Is pension also working as ponzi?

I was thinking pension is some percentage of money deducted from worker's salary and saved for the worker plus the percentage coming from the employee, paid to the worker at retirement.

cizatext

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Quote from: Hydrogen on September 25, 2018, 06:50:16 AM

Interesting.

Has anyone ever thought insurance could be similar to a ponzi scheme? Huh

Well, I have wondered if insurance could be similar to a pyramid scheme or ponzi in that there are those on the top of the "pyramid" whose costs are being covered by those on the bottom. The main differences may be ponzi schemes relying more heavily upon a growth of their userbase to sustain costs, wheras insurance tends to be more institutionalized with a more thoroughly saturated userbase. And of course there is a necessity context to insurance.

I guess the main question is whether insurance policies are officially mandated to produce greater profits for various institutions. Or whether they're necessitated by other factors. I think historically people had healthcare long before health insurance was invented. There could be historical precedents for systematically analyzing and perhaps even putting forth a decent argument contending that various forms of insurance could be eliminated and replaced with better frameworks for achieving identical goals.

I guest the slide difference between a ponzi scheme and insurance is that most insurance companies charges their client on either monthly basis or quarterly basis which they call servicing fees in my country, but ponzi scheme on the other hand require a just one time deposits, ponzi is not institutionalized but insurance is and ponzi is just a way of robbing peter to pay Paul but insurance have a central account.

gowobonyok

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My understanding so far is that we buy bitcoin and sell bitcoin in the same market, and then other people buy it and sell it back in the same market without the products spinning there. this is like an asset that has been mocked by many people, so many call it worthless.

Tamilson

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Quote from: ?? on ??

Many people are still not aware that they are being scammed.

When it's too good to be true then come to think of it and back off. No decent investment will give us a quick profit unless it's illegal and scam. Some people that fall for this are the one that's greedy yet don't have knowledge what he's doing. So yeah Charles Ponzi is now a legend though not in a good way.

Bitcoin-Turkiye

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This is a very pleasant and informative topic, thank you very much. also; What to do if you’ve been a victim of a Ponzi scheme?
If you’ve been investing money in a Ponzi scheme then you should:
1 Break off all contact with the fraudsters and don’t send any more money.
2 Contact your bank to let them know so they can flag any suspicious activity.
3 Keep all written and electronic communications.
4 Contact Action Fraud to report it.
You should also beware of follow-up scams, where fraudsters contact you claiming they can help you get your money back.

sheenshane

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Quote from: Jating on March 09, 2019, 09:18:41 AM

Whatever form or shape it is, Ponzi scheme is just a way to scammed people of their hard earn money. Others may call it Pyramiding or Networking but the output or the goal is the same. Recruit as many people as you can, entice them to invest lots of money and sign under you.

I agreed, Ponzi scheme could let a person to survive with its profitability but not on a large scale. It's like having an insurance firm with yourself as an employee. The Ponzi scheme has this great system that is very logical. If you have great analysis and encounters postal letters frequently, you will actually know how this system work and how will earn from the scheme. However, because of its popularity today, the Ponzi schemes are practiced less compared before because the people are so much familiar about it already.

Jating

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Quote from: ?? on ??

You've shared an interesting fact on where ponzi term was originated. How sad that it was Charles Ponzi who introduced that kind of act. Though I believe that nowadays, ponzi scheme are widely happening. Many people are still not aware that they are being scammed.
I believe, aside from what Charles did, there are still so many ways how this ponzi scheme being perform. Networking is included on that.

Whatever form or shape it is, Ponzi scheme is just a way to scammed people of their hard earn money. Others may call it Pyramiding or Networking but the output or the goal is the same. Recruit as many people as you can, entice them to invest lots of money and sign under you.

As I have said, this has been practiced before until Ponzi gave it a name, so just be careful and never blindly trust someone, specially if it involves investment and huge amount of money.

cahbagus555

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Ponzi already profitable for first member but he should recruit new member to build a pyramid. Mostly ponzi dont have a product and its like a money game. Sometimes its hard to recognize a ponzi

pixie85

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In many parts of the world nobody knows what a Ponzi scheme is. These are called pyramid schemes or financial pyramids. I haven't heard of the term Ponzi Scheme until I came to Bitcointalk. This is an American expression.
This scheme is very easy to identify but people still fail to do so. When someone offers to double your investment in a year you should be very suspicious.

Freedom24

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And that rotten scheme is still being used, even those who fallen to the that trickery are not just those with low education.

Quote from: bitmover on September 27, 2018, 07:25:18 PM

The ones who are retiring now didn't contribute enough to pay their pensions. So the ones who are working now are paying for the olders pension. And so on.

This must be stopped, pension funds must come from personal funds and awareness, not other people's funds. There must be someone, maybe a social activist or even someone in the government who are aware of this and maybe something must be sacrificed for this.

sublime5447

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Quote from: Hydrogen on September 25, 2018, 06:50:16 AM

Interesting.

Has anyone ever thought insurance could be similar to a ponzi scheme? Huh

Well, I have wondered if insurance could be similar to a pyramid scheme or ponzi in that there are those on the top of the "pyramid" whose costs are being covered by those on the bottom. The main differences may be ponzi schemes relying more heavily upon a growth of their userbase to sustain costs, wheras insurance tends to be more institutionalized with a more thoroughly saturated userbase. And of course there is a necessity context to insurance.

In my opinion, insurance is more alike to a joint venture system and funds will be disbursed to the entitled people just as in the agreement, if there are differences in class it is natural, because the monthly fee is more expensive.

Quote from: Hydrogen on September 25, 2018, 06:50:16 AM

I think historically people had healthcare long before health insurance was invented.

Yes, but if the person does not have insurance, they must pay full the health costs, but if the person has insurance, they don’t need to think about the costs because the costs are covered by insurance in accordance with the agreement.

sinkfish

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its start with a man call Charles Ponzi, where he propose that he could promise 100% profit in 90 days for the investor.

BitHodler

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Quote from: crwth on November 10, 2018, 08:22:40 PM

I think as long as you profit from those kinds of things, you would be happy. I think that's what everyone wants.

Obviously, that's not what everyone wants, because there simply isn't a way for everyone to profit. People need to stop acting like a bunch of empty headed chickens, especially here in the crypto world.

We're at a point at which people know that they pump money into a scam, but they wrongly assume that they can walk out with profits before the scheme implodes, which is ridiculous.

The moment people realize that they are about to lose their money they start complaining and call out whatever they invested in for being a scam. Does that make sense? These people don't have the right to complain at all.

If you're out to gamble, accept that you can lose.

palle11

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Quote from: crwth on November 10, 2018, 08:22:40 PM

Maybe you could consider insurance types as a legitimate and friendly “Ponzi Scheme.” I have recently encountered this type of structure, and it has been linked with tour packages and some affiliate marketing schemes. I don't know if Affiliate marketing could be considered as another Ponzi scheme, paying with investors money.

I think as long as you profit from those kinds of things, you would be happy. I think that's what everyone wants.

Yes I think marketing of some sort has the underpinning of ponzi. If where you buy one product and, it is attached to buying another product ,then that in itself is ponzi. Some shops these days requires someone to introduce another person to the shop and a commission is paid to the first adopter's bank account- they are all ponzi. Ponzis are not reliable because they depend on referrals to continue to an extent where the bubble will burst right there in an unlucky late comers face.

BTCappu

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Who doesn't know about charles ponzi ? How do you not know about him at all, if you knew what ponzi is and ever heard ponzi before your life you must have heard about charles ponzi at one point in your life. For example during his worst times he took money from Al Capone himself, of course knowing if he just gave him his money back than Al Capone would have reinvested it until Charles wouldn't be capable of profiting from it and doubling it from other peoples investments.

Charles knew it was unsustainable so he decided to bring the money back, just as it is without touching it and told Al Capone his investments failed so he brought the money back, Al Capone apparently loved his honesty and let him keep the money since it wasn't important to him and let him go his way. Dude was smart.

clrpod

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I have come across this story before, to the extent of knowing the name was from an Italian guy but I didn't know much more. I do wonder if he initially set out with the intention of operating it in such a way or he began paying investors with new investors money purely because he couldn't stand the thought of his idea/business failing?

Reid

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Well thanks for that since that word is literally not a word at all.

Looks like every scheme now will be connected with him since they keep on using that so called Ponzi scheme. Even scams are being called the same way by now.

Maybe more people should look at this story since I can see the same scheme all over the world. Name it. It is always that same pyramid where the upper class goes richer taking money from the late comers.

Never joined any investment like that. Maybe I should just create one than be under them.

Escf4

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GIGZI - INDEPENDENT WEALTH MANAGEMENT

The Ponzi schemes are called Ponzi for the style of their csmpaign in inviting investors to join their , scheme is they promise to give investors a good profit when tge investors join them and invest mobey for them , and then after sometime they will pay the profits of the old members from the money from the new investors , if there no available new investors then the old member will have to wait for his profits , so this is ponzi scheme.

crwth

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https://linktr.ee/crwthopia

Maybe you could consider insurance types as a legitimate and friendly “Ponzi Scheme.” I have recently encountered this type of structure, and it has been linked with tour packages and some affiliate marketing schemes. I don't know if Affiliate marketing could be considered as another Ponzi scheme, paying with investors money.

I think as long as you profit from those kinds of things, you would be happy. I think that's what everyone wants.

Topic: Why Ponzi schemes are called "Ponzi" (Read 455 times)