In this video, I discuss whether or not Bitcoin is a Pyramid scheme or a Ponzi scheme. I conclude that it is neither, simply because:

1) Bitcoin is decentralized, not run by a corporation or charismatic founder.
2) Bitcoin's pricing is determined by buyers and sellers around the world, rather than by a single clearing house or exchange.
3) The Bitcoin network and software are open source and transparent.
4) The Bitcoin blockchain keeps track of all transactions and is perfectly transparent and verifiable.
5) There is no reward for bringing in new recruits to Bitcoin.
6) Bitcoin has real economic value as an unconfiscatable and censorship-resistant medium of exchange, and store of value.

Bitcoin is a new technology that benefits from network effects, similar to the telephone, the internet, and companies like eBay and FaceBook.

Not investment advice! Consult a financial adviser.

Ponzi Scheme:
https://en.wikipedia.org/wiki/Ponzi_scheme

Pyramid Scheme:
https://en.wikipedia.org/wiki/Pyramid_scheme

Can The Government Shut Down Bitcoin?
https://www.youtube.com/watch?v=VJtVt5QuIAE

Bitcoin For Beginners (2020):
https://www.youtube.com/watch?v=ZpDA682fDN0

Warren Buffett and Bitcoin (2020):
https://www.youtube.com/watch?v=3AOBhnyyCNI

Charles Ponzi:
https://en.wikipedia.org/wiki/Charles_Ponzi

Madoff Ponzi Scheme:
https://en.wikipedia.org/wiki/Madoff_investment_scandal

Crypto ponzi schemes:
https://en.wikipedia.org/wiki/OneCoin

https://xbt.net/blog/indian-police-arrest-two-in-300-million-gainbitcoin-ponzi-scheme/

https://en.wikipedia.org/wiki/Bitconnect

Global map of Bitcoin nodes:
https://bitnodes.io/

The Fed buys junk bonds:
https://www.barrons.com/articles/the-fed-for-the-first-time-can-buy-junk-bonds-that-should-help-fallen-angels-51586449148

Stock market circuit breakers:
https://www.cnbc.com/2015/08/24/when-do-circuit-breakers-kick-in-cnbc-explains.html

My favorite valuation model for Bitcoin:
https://medium.com/@100trillionUSD/modeling-bitcoins-value-with-scarcity-91fa0fc03e25

https://twitter.com/100trillionUSD

Matthew Kratter is the author of the Amazon best-seller "A Beginner's Guide to the Stock Market":
https://www.amazon.com/Beginners-Guide-Stock-Market-Everything-ebook/dp/B07S31TBF5

If you like my teaching style and would like to learn more about investing and trading stocks, options, and futures, be sure to check out my online courses here:
https://www.trader.university/join

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