I have always wondered why the gospel of Bitcoin is being preached with so much passion. The phrase “the future of money is here” is almost everywhere including the social media. Let me shock you with this, I once saw a post which says “tonight I would be giving out 20 Kringles for the first twenty people who messages me”. Why on earth would you give out acclaimed money when you are not a charity based organization? Could it then be a Ponzi scheme or a Pyramid scheme?
Let’s Talk About Bitcoin
This is popularly regarded as the internet of money. Ever since the early days of the internet, the quest to transfer money without experiencing hitches has been the major puzzle to be answered. The puzzle of who watches over the money in the sense of a third party. This is the emergence of Bitcoin, a digital form of currency – cryptocurrency.
However, the existence of Banks has been able to answer that puzzle but yet human wants are insatiable. We are not ready to let go of that transaction fee we pay to bank and so, we opt for an option where we pay nothing, but even hope to get more money by using the platform- referrals. Could it then be a Ponzi scheme or a Pyramid scheme?
The missing link
Since we have gotten what we want, what we fail to realize is that though it seems Bitcoin provides us the best option, something is missing.
Bitcoin provides us with a decentralized network of miners who then serve as the third party. Then how do this people get rewarded if Bitcoin offers us the services of third party without having to pay any charges?
Let me tell you this at this juncture, these miners are rewarded with new Bitcoins when they get people to mine Bitcoin with. What you also don’t know is that you are paying the transaction fees indirectly but they make it exclusive to you while canvassing for people to mine Bitcoin with. Nothing goes for free in this world. Could it then be a Ponzi scheme or a Pyramid scheme?
They make you mine Bitcoin but yet you keep yourself from spending it. The finite supply of Bitcoin has programmed it such a way that its prices would continue to increase. Even for the sake of why you decided to mine it, you still prefer to carry out your transactions with your fiat currency.
You should know this by now, that Bitcoin is being preached as the future of money and the selling point is the fact it keeps growing. People buy it because they think the price will grow to infinity once everybody uses it and so they don’t spend theirs. They have not only made you mine it but they have also kept you in that state of losing your consciousness to real-time economy.
Why on earth should you purchase it and yet hoard it because you feel it would keep growing, this isn’t an investment but then, could it be a Ponzi scheme or a Pyramid scheme?
However, is there a good side to it?
Yes, there is a good side of it. If you are thinking of sending a financial agreement or asset, it would be nice sending it with Bitcoin via the simplicity of its blockchain. You will gain more profit to your purse since you are going to be spending less cash. Little wonder Wall Streets Banks are considering on building their own Blockchain following the simplicity of Satoshi Nakamoto’s design.
At this juncture, I’m sure you must be puzzled on how the blockchain is so simple such that it costs less. Do you recall that I earlier mentioned that Bitcoin rewards its miners (third party) new coins? Instead of you to pay for the transactions, Bitcoins do that by rewarding its miners with new coins and all transactions are being summed up in the blockchain. All they need you to do is to mine it with them.
But then, Could it be a Ponzi scheme or a Pyramid scheme?
I will love to reiterate this fact as I wrap this up, Bitcoin is not a currency and the only function of currency it performs is the store of value of which it is weak at. With this said, it’s high time I retired on this piece as I leave you to answer the question; could it be a Ponzi scheme or a Pyramid scheme?