The Crypto bubble, page-61

A Ponzi is a system where old investors make their profits purly from the money paid in by new investors.

For example early investor buys 1 bitcoin for $1, he then sells it for $10 where 10 new investors buy 1/10th of a bitcoin for $1 each.


Those 10 investors sell to 100 new investors, those 100 to 1000, those 1,000 to 10,000, those 10,000 to 100,000, those 100,000 to 1 million, then those 1 million investors becomes 10 million, etc

When you run out of new people buying into the ponzi the old investors cant make their profits and the price falls, and falls, and falls.

Hence Bitcoin is a Ponzi scam where you pyramid the number of investors up making money till it collapses. Then everyone realises it was actuall junk all along.