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Is Bitcoin Mining a Ponzi Scheme?

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No, the Bitcoin mining is nothing similar to the Ponzi scheme. When you mine Bitcoin you provide service and get the proposed value te come back.

Ponzi scheme is a fraud very first pulled by an American named Charles Ponzi. Also, similar scheme is depicted ter one of the novels by Charles Dickens so there are reasonable presumptions that youthful Ponzi at the time got the idea that way. So, Ponzi scheme operates by attracting investors through fine profit and then paying them by revenue gained by newer investors.

At the time, confidence is gained at older investors and they keep investing. There is no legitimate business activity that would ensure any profit, but only the fresh value. Ponzi scheme operates only by attracting fresh investors and it is fated to fail after certain period of time. Background can be different — original wasgoed related to the postbode stamps, but there are never any real activity included. Schemes like this one never last long since they are ceased te three ways. Often, authorities zekering the fraud, or the organizers run away with money.

Still, if they don’t, it never lasts long since the further progress requires more resources and the investments zekering. Interesting, market druppel or global economy laagconjunctuur make investors redraw their assets. Bitcoin market survived global economy declines and its own market crashes numerous times. No Ponzi scheme would everzwijn last for almost ten years now.

Bitcoin mining is an entirely different concept. It is all about the computational power. Individuals share their hardware to the network and get Bitcoin or any other coin ter comeback. The real service is provided and there is real profit. Computational power is necessary since it is the foundation of the network, it is used for solving math problems that are te the base of the algorithms, and the transactions are made that way.

Thesis are the facts and the key differences inbetween the Ponzi scheme and Bitcoin mining. The actual service is made and spil such it results with the actual profit.

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Related movie: Best/Highest Paying Bitcoin Cloud Mining Sites Update!! June 2017!!

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