Is crypto just one big Ponzi scheme?

[Michie]

Elites have started saying the quiet part out loud

Mike Novogratz infamously likened Bitcoin to a pyramid scheme


This week we witnessed the latest — and perhaps more striking — sign that crypto might not be the future of finance. On Tuesday, Sam Bankman-Fried, founder of FTX, a huge crypto exchange, opened a can of worms by describing“yield farming” — crypto’s makeshift alternativeto traditional bank lending — as a Ponzi scheme.

“You start with a company that builds a box,” he said in the latest episode of Bloomberg’s Odd Lots podcast, and “maybe for now actually ignore what it does or pretend it does literally nothing … pour another $300 million in the box and you get a psych and then it goes to infinity … then everyone makes money.”

Continued below.
Is crypto just one big Ponzi scheme?

 

[Leaf473]

Elites have started saying the quiet part out loud

Mike Novogratz infamously likened Bitcoin to a pyramid scheme


This week we witnessed the latest — and perhaps more striking — sign that crypto might not be the future of finance. On Tuesday, Sam Bankman-Fried, founder of FTX, a huge crypto exchange, opened a can of worms by describing“yield farming” — crypto’s makeshift alternativeto traditional bank lending — as a Ponzi scheme.

“You start with a company that builds a box,” he said in the latest episode of Bloomberg’s Odd Lots podcast, and “maybe for now actually ignore what it does or pretend it does literally nothing … pour another $300 million in the box and you get a psych and then it goes to infinity … then everyone makes money.”

Continued below.
Is crypto just one big Ponzi scheme?

If the crypto world is seen as a way to make money, then yes, it's kind of a Ponzi scheme.

But if it's seen as a less expensive and more secure alternative to using credit cards for online purchases, them it's just an interesting and probably good idea. imo.

 

[zippy2006]

It's not a Ponzi scheme, it is "a bubble wrapped in techno-mysticism inside a cocoon of libertarian ideology," as Paul Krugman says.

 

[martymonster]

Our current monetary system is a scam. The literally create money out of thin air, and then charge interest on it.

 

[WilliamMikesy]

The whole debate around crypto being a Ponzi scheme can definitely raise eyebrows. But you know, it's not all black and white. While some might see shades of a pyramid, others are managing to rake in profits.

 

[WilliamMikesy]

The whole debate around crypto being a Ponzi scheme can definitely raise eyebrows. But you know, it's not all black and white. While some might see shades of a pyramid, others are managing to rake in profits.

And sure, there are instances where things can get a bit, well, unconventional. That yield farming example you mentioned sounds like a plot twist in the crypto world. But here's the thing: not everyone's in it for the quick buck. Some folks are playing the long game, navigating the market with strategy.
Have you ever looked into digital asset exchange tools? They've been a steady companion in my crypto journey, smoothing out some of those bumps along the way. Just some friendly chatter from a fellow crypto explorer.