Breaking down the 7 myths of Bitcoin #1

Bitcoin is a pyramid scheme

A pyramid scheme is an investment fraud in which the fees of new participants are often used to pay money to existing participants for recruiting new members.

Pyramid scheme organisers may present the scheme as a business opportunity, such as a multi-level marketing programme.

Scammers often use social media, internet advertising, company websites, group presentations, conference calls.

Characteristics of the pyramid scheme:

High returns with little or no risk Too consistent returns. Unregistered investments. Unlicensed sellers. Secret and complex strategies. Problems with paperwork. Difficulty in receiving payments.

Bitcoin is not a company. It has no employees and its supply is finite. No matter how many people adopt it, there will only be 21 million Bitcoins.

Bitcoin will only become a global reserve currency if hundreds of millions (if not billions) more adopt it.

The utility of Bitcoin is like money.

Bitcoin is not a company that sells a product, and there is no revenue stream to pay future dividends.

Bitcoin isn’t about making money; instead, bitcoin is a value, or at least has become money for those who choose to store some of their wealth in it.

And it’s not a scheme to get rich quickly, it’s fundamentally about storing value.

Bitcoin was not built on the need for new claimants to make a profit, but for its value to grow for everyone.

Bitcoin is not a pyramid scheme.

Breaking down the other myths:

Breaking down the 7 myths of Bitcoin #7

Breaking down the 7 myths of Bitcoin #6

Breaking down the 7 myths of Bitcoin #5

Breaking down the 7 myths of Bitcoin #4

Breaking down the 7 myths of Bitcoin #3

Breaking down the 7 myths of Bitcoin #2

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Li₿εʁLiøη

Li₿εʁLiøη

Researcher — ϚʁyptøWriter — Content Creator | Twitter @liberlion17 website: liberlion.com