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Ras Vasilisin Hacker Noon profile picture

@rasRas Vasilisin

Entrepreneur, investor, and founder & CEO @VirtuseExchange

Debunking the most immature myth about Bitcoin.

I recently participated in a panel discussion where it was suggested that Bitcoin is a Ponzi scheme. Honestly, I was shocked by the narrative because so far, the most prevalent claims against Bitcoin I’ve heard were criminals, pedophiles, and terrorists use it. But, of course, all of them have been debunked many times over, and I won’t get into them here. 

So instead, I’ll take a closer look at whether or not the Ponzi scheme claim has merit.

What’s a Ponzi Scheme

The Ponzi scheme is named after its originator, Charles Ponzi. It is a fraudulent investing scam that generates returns for earlier investors with money taken from later investors. 

The most famous modern Ponzi scheme is Madoff Securities, which Bernie Madoff kept running for about forty years. Interestingly, Madoff was the former NASDAQ chairman and almost became…

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