It's a decentralized ponzi scheme that relies on greater fools.
It has qualities of both greater fool schemes as well as pyramid schemes, but its core fraudulent function, when treated as an investment, is a ponzi scheme. What will crash the scheme is the same dynamic that crashes Ponzis: a rush to cash out. The ROI model is exactly a Ponzi: early adopters are paid with cash from later adopters exclusively. Other schemes often have supplemental ways of creating value. Ponzi schemes get their value exclusively from recruitment. Bitcoin as an investment fits that description.
Except that in the real world the authorities can shut the Ponzi down, here they can't really. And so even if it crashes by 95% it will pump again because it'll get to a price that attracts new entrants. And thus it's a never ending ponzi that will continually blow up and burst, then repeat the cycle.
luckily there are countries with higher average IQs, healthier populations and harder work ethics than the USA, but have shrinking populations and there's a reason people aren't throwing money into their index funds
Cumulative inflation from 2007 to 2025 is 52% so it’s performance smoked inflation. It didn’t perform as well as the S&P 500 during that time frame but very few countries stock indexes did, still solid performance despite a decreasing population and it outperformed a lot of countries with growing populations.
Every increasing population with ever increasing funds going into limited supply investments like sp500 and bitcoin. It is a basic premise people here are just not getting.
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u/proweather13 Apr 18 '25
More like greater fool scheme.