ForexMinute.com – Many critics of Bitcoin have accused the currency to be nothing but a pyramid scheme, similar to MMM – a Ponzi scheme company in Russia that conned over 40 thousand people and raised around $10 million from them during the whole process. Many investors who are about to make their first investments in this new-age digital currency must know that Bitcoin is nothing like a fraudulent pyramid scheme.
Here I am going to present several points to that will prove the same. Here they are:
Firstly, a typical pyramid is of no value, and promises to pay more only if one puts contributors to the process. People who decide to have a Bitcoin wallet gives no such promises. They form a wallet because they think Bitcoin is a convenient way to store money (to protect them from inflation), and also because it is a convenient way to pay for goods and services.
Secondly, Bitcoin is a real product, and a software with certain useful properties. A typical pyramid does not represent any product in itself.
Thirdly, those who have bought Bitcoin earlier have seriously made huge profits with its rising value over the years. However, in pyramid schemes, investors are not even close to make profits, as it solely depends on the expense of those who choose to join the hierarchy under the investor by paying a stupid sum. Those who took the possession of Bitcoins were even benefitted later as they do less likely to earn a rate of growth, but the properties of the currency (anonymity, almost zero transaction costs, flexibility, decentralized, no inflation) are also valuable and has served as a sufficient reason explaining why people want to invest in Bitcoins.
Finally, even those economists and financiers who are opponents of Bitcoins, do not consider it a pyramid. Some finally even believe that Bitcoin is interesting, though relatively a risky investment overall.
To contact the writer of the article: Yashu Gola at firstname.lastname@example.org
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