Does Bitcoin meet the definition of the Ponzi scheme? This is the theme of a recent Cointelegraph cryptocurrency, as Kraken’s Bitcoin strategist meets Jorge Stolfi, professor of computer science at the University of Campinas.

Like other Bitcoin skeptics, Stolfi has repeatedly defined Bitcoin as a Ponzi scheme. The core of his argument is that Bitcoin does not generate any cash flows, and that the money paid to Bitcoin investors comes exclusively from new investors who buy Bitcoin.

“Every time you invest in bitcoin, the money you invest goes to former investors or miners and disappears,” Stolfi said.

In response to Stolfi’s argument, Rochard pointed out that Bitcoin is a peer-to-peer money system, and like other forms of money, it should not generate cash flow.

It is simply the common property of money, because it is money. Thus, it has no cash flow, and that does not make it a Ponzi scheme. In Roschard.

Rochard also noted that Bitcoin differs from Ponzi charts in that it does not guarantee a stable return and is known to be a risky asset.

“Bitcoin promoters have repeatedly argued that there is a risk of loss, and that if we look at the empirical data, this risk is confirmed over and over again,” Rochard said. “Ponzi schemes do not work,” he added.

Nevertheless, Stolfi is convinced that effective Ponzi schemes do not promise a return, as it will be a “dead sale”. “The next day S.E.C. knock on your door, ”he said.

For example, a computer scientist mentioned the infamous Madoff Ponzi scheme, which defrauded thousands of investors for $ 65 billion. “He returned nothing. […] The reason people invested in it was because he paid everyone who wanted to spend money. “

Source: CoinTelegraph