Quite often, I see articles and blog posts determining that Bitcoin is a Ponzi scheme or a scam only benefitting early adopters. This group seems to have a hard time separating intrinsic value from perceived value. It’s understandable to believe something has value because people value it.
However, I would argue that several scams exist today which are far less benevolent. I am going to highlight 5 scams that are openly accepted to hopefully get some non-believers in cryptocurrency to question their conclusions and re-think Bitcoin.
This article is not financial advice. I am not a financial advisor. These are my opinions and I am open to owning that some of my opinions are wrong or disagreeable to some readers.
Scam #1- The Lottery
Over $70 billion was spent in America alone on the lottery last year. This chart shows state by state, how much Americans wasted on lottery tickets in 2020. In China, people wasted over $50 billion on the lottery in 2020.
We are told that the proceeds from the lottery are spent on important things like education, policing, and social services. And because it is being hosted by governments, there is very little pushback or press discussing how big of a scam the lottery is.
Meanwhile, the statistical odds for winning a 6 number lottery from a pool of 49 numbers is 1 in 13,983,816. Even worse, a 2018 Bankrate survey found that 28% of Americans earning less than $30 thousand per year played the letter weekly and spent $412 per year on tickets.
Let’s suppose these same Americans invested $412 on the first of each year from 2018 through 2021 on Bitcoin. Today, their $1648 investment would be worth $9891. I would wager an extra $10 thousand would be a huge boon for people earning less than $30K per year.
Scam #2- Social Security
If you look up the definition of a Ponzi scheme on Wikipedia, it describes it as:
“A Ponzi scheme (/ˈpɒnzi/, Italian: [ˈpontsi]) is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. The scheme leads victims to believe that profits are coming from…