Is someone constantly claiming that Bitcoin is a pyramid scheme? Let's figure out what the real difference is.
How the pyramid works:
The simple scheme – the money from early investors goes to pay the newcomers. When the influx of newcomers dries up, the whole system collapses. Those who got in first can exit with a good profit. Those who come last – lose everything.
About BTC otherwise:
• Transparency as a foundation. Every transaction is recorded in the blockchain from the very beginning. The source code is open to everyone. No secrets, like in Ponzi schemes.
• No one guarantees profit. Bitcoin is a technology, not an investment scheme. There are no guarantees, like in a pyramid.
• No payment delays. You can withdraw BTC whenever you want, no one will hold you back. In pyramids, there are often delays and complicated payment systems.
• There was no pre-mining. All coins have been available to the community from day one. Satoshi mined BTC under the same conditions as anyone else.
• Decentralization. It is impossible to change the Bitcoin algorithm without the consent of the majority of the network. In a pyramid, there is one king at the top; in BTC, power is distributed.
Red flags of the pyramid:
✗ Guaranteed high profitability without risk
✗ No registration, licenses, information
✗ Complex and unclear strategies
✗ Delays in payments
Bitcoin? None of that. Just an open technology that has been working for 15+ years without a centralized “head”.
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Pyramid vs BTC: what are the real differences?
Is someone constantly claiming that Bitcoin is a pyramid scheme? Let's figure out what the real difference is.
How the pyramid works: The simple scheme – the money from early investors goes to pay the newcomers. When the influx of newcomers dries up, the whole system collapses. Those who got in first can exit with a good profit. Those who come last – lose everything.
About BTC otherwise:
• Transparency as a foundation. Every transaction is recorded in the blockchain from the very beginning. The source code is open to everyone. No secrets, like in Ponzi schemes.
• No one guarantees profit. Bitcoin is a technology, not an investment scheme. There are no guarantees, like in a pyramid.
• No payment delays. You can withdraw BTC whenever you want, no one will hold you back. In pyramids, there are often delays and complicated payment systems.
• There was no pre-mining. All coins have been available to the community from day one. Satoshi mined BTC under the same conditions as anyone else.
• Decentralization. It is impossible to change the Bitcoin algorithm without the consent of the majority of the network. In a pyramid, there is one king at the top; in BTC, power is distributed.
Red flags of the pyramid: ✗ Guaranteed high profitability without risk ✗ No registration, licenses, information ✗ Complex and unclear strategies ✗ Delays in payments
Bitcoin? None of that. Just an open technology that has been working for 15+ years without a centralized “head”.