"A Ponzi scheme is a fraudulent investment operation that pays returns
to its investors from their own money, or the money paid by subsequent
investors, instead of from profit earned by the individuals running the
business. Ponzi schemes are designed to collapse at the expense of the
last investors when there is not enough new participants.
Bitcoin is a free software project with no central authority.
Consequently, no one is in a position to make fraudulent representations
about investment returns. Like other major currencies such as gold,
United States dollar, euro, yen, etc. there is no guaranteed purchasing
power and the exchange rate floats freely. This leads to volatility
where owners of bitcoins can unpredictably make or lose money. Beyond
speculation, Bitcoin is also a payment system with useful and
competitive attributes that are being used by thousands of users and
businesses."
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