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Is bitcoin a pyramid scheme

In many cases, the scheme eventually crashes and those at the bottom are left with nothing, while those at the top make piles of money. That means relatively very few people are getting rich from Bitcoin. Due to the nature of blockchain, anyone at any time can verify all transactions made on the Bitcoin network, dissimilar to a Ponzi Scheme where "investments" are shrouded in secrecy. First, let's take a look at what a Ponzi Scheme actually is.

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Blockchain is a record of transaction data that relies on a shared ledger. This ledger is inherently tamper-evident and provides a trusted shared and reliable. Blockchain technology enables secure peer-to-peer transactions with smart contracts that automate processes such as payments and order tracking.

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When faced with something new or unfamiliar, especially when dealing with money, people often tend to automatically put it into a box. First, let's take a look at what a Ponzi Scheme actually is. In economic terms investing in a Ponzi scheme is a negative-sum game and is a form of gambling like poker or roulette. There are even more who are genuinely convinced by specious arguments tied to stories they simply want to believe in, and that can be a powerful force for post-hoc rationalisation of fantasies. BY Will Daniel. Our new weekly Impact Report newsletter examines how ESG news and trends are shaping the roles and responsibilities of today's executives.