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.
The most famous modern Ponzi scheme is Madoff Securities, which Bernie Madoff kept running for about forty years.
Ponzi scheme organizers often promise to invest your money and generate high returns with little or no risk.
Krugman is the best know for predicting that by 2005, the Internet’s effect on the economy will not be greater than the fax machine’s.
His history with the largest digital asset is quite controversial as first he revealed he is ”coming to Bitcoin” and reaffirmed that he purchased it.
Because the narrow Ponzi scheme definition clearly doesn’t apply to Bitcoin, some people have used a broader definition.
And like any commodity, it produces no cash flows and is only worth what someone else will pay you for it or trade you for it.
So, for example, if 20% of people were to try to pull their money out of their bank simultaneously, the banking system would collapse.
In other words, you’ll never receive the same value for your fiat currencies in the future because they are constantly devalued.
Bitcoin doesn’t truly meet even the broader definition of a Ponzi scheme any more than the gold market, fiat currencies, fine art, and premium real estate.
Later, publicly traded companies like MicroStrategy, Square and Tesla allocated some or all of their reserves to Bitcoin instead of dollars, and international banks like DBS and Standard Chartered launched their crypto brokerage.