Everyone wants to make money as quickly and easily as possible. This has led to many scams and frauds that take advantage of gullible people.
Everyone wants to make money as quickly and easily as possible, for example, as in Bluechip casino crypto casino. But as a rule, the thirst to make easy money has brought to life a lot of scams and frauds that take advantage of gullible people. Pyramid schemes are one of them, as are Ponzi schemes and the like.
If you fear being scammed, it begs the question: is bitcoin a pyramid scheme?
Is bitcoin a pyramid scheme?
To answer this question, you need to know what a pyramid scheme is: a business model that recruits members by promising them payment or reward for recruiting others.
Bitcoin is NOT a pyramid scheme because there is no reward or guaranteed income for buying BTC. Beware of people who claim otherwise. However, there have been many platforms that have used bitcoin in their scams, but that says nothing about the coin and the technology behind it. Criminals are always among the first to use new technology, be it cars, shoes, cell phones, weapons, or other useful tools. Bitcoin is just another technology they can use in their systems. Finally, the U.S. dollar is also not a pyramid scheme, although it is widely used in most of them.
Read our articles “5 Crypto Frauds You Should Know About” and “Bitcoin Security Tips for Beginners” to learn more about possible crypto fraudsters and how to avoid them.
Is bitcoin a Ponzi scheme?
What about a Ponzi scheme? In short, bitcoin is the exact opposite of a Ponzi scheme. A Ponzi scheme is very similar to a pyramid scheme, only you don’t get rewarded for recruiting other people, you get a fraction of what they pay.
A Ponzi scheme needs a hierarchy of people at the bottom to generate profits for the people at the top. Bitcoin operates on a decentralized model in which there is absolutely no hierarchy and where everyone is equal. The Bitcoin protocol is completely open, so anyone can participate in its development or contribute to its infrastructure by mining BTC.
Learn more about bitcoin by reading our other guides “Why Bitcoins have value” and “How is the price of bitcoins established?”.
If you’re interested in buying bitcoin, read our guides “Is Bitcoin Worth Buying in 2019” and “How to Buy Bitcoin” before doing so.