Is Bitcoin a pyramid scheme?
Everybody would like to make money as quickly and simply as possible. This has brought to life many frauds and scams that take advantage of gullible people. Pyramid schemes are one of them, as are Ponzi schemes and the similar.
Being wary of getting duped, a normal question to ask would be: is Bitcoin a pyramid scheme? To answer that question, you need to know what a pyramid scheme really is: a business model that recruits members by promising them payment or rewards for enrolling others into it.
Bitcoin is NOT a pyramid scheme, as there is no reward for buying tokens. There have been, however, platforms that used Bitcoin in their scams, but that changes nothing about the coin itself. After all, the US dollar is not a pyramid scheme, although it is often used in many of those!
What about a Ponzi? In short, Bitcoin is the total opposite of a Ponzi scheme. A Ponzi scheme is very similar to a pyramid scheme, except you are not rewarded for enrolling other people, but you do earn a part of whatever they pay. A Ponzi scheme needs a hierarchy, or people who are down, to generate returns for people who are up. Bitcoin operates on a decentralized model that has absolutely no hierarchy and where everyone is equal.
Read our article "5 Crypto Scams To Be Aware Of" for more information about possible crypto fraud.