The post The Bitcoin Ponzi Scheme Paradox appeared on BitcoinEthereumNews.com.

“Ponzi scheme” has become a byword for all manner of financial frauds and monetary scams. When a rapid six month collapse erased $2T (trillion) from crypto market capitalization in 2022, mainstream media outlets were quick to again label cryptocurrencies, including Bitcoin, Ponzi schemes. Writing in the Chinese People’s Daily online edition, Shan Zhiguang and He Yifan, representing the Chinese Blockchain-based Services Network (BSN), claimed: Ever since Satoshi Nakamoto released “Bitcoin: A Peer-to-Peer Electronic Cash System” in 2008, leading to the official birth of Bitcoin, the debate surrounding virtual currency (Cryptocurrency) has never stopped for a moment. [. . .] In its essence, the author believes that virtual currency is undoubtedly the largest Ponzi scheme in human history. Can Bitcoin be legitimately described as a Ponzi scheme? If so, is it really the largest Ponzi scheme in history? In the rapidly developing world of tokenised assets and digital currencies, the answer is not as straightforward as you might think. In fact, we are faced with a Bitcoin paradox. Click here to download a PDF of “The Bitcoin Ponzi Scheme Paradox” by Iain Davis. Powered by HIVE Digital Technologies LTD. The Origin of “Ponzi Schemes” The Dictionary of Idiomatic English Phrases, published in 1891, claims that the etymological root of the the phrase “rob Peter to pay Paul,” meaning to take what rightfully belongs to one person to pay another, is founded in English folklore: In 1540 the abbey church of St. Peter’s, Westminster, was advanced to the dignity of a cathedral by letters patent; but ten years later it was joined to the diocese of London again, and many of its estates appropriated to the repairs of St. Paul’s Cathedral. There is some dispute and evidence suggesting “rob Peter to pay Paul” was in common usage before the 16th century. Later…

---

Filed under: News - @ May 16, 2024 10:28 pm