Bitcoin Is Run By Ponzi Operators?
People do not have in-depth knowledge of Bitcoin. Naturally, as time passed new strange, amazing stories about the bitcoin began to surface. Some began as a prop or publicity gimmick by insiders while many others spread due to fear and ignorance. Is there sufficient reason for all this controversy? Here we outline the points that come up in discussions on the bitcoin cryptocurrency.
A Ponzi operation requires investors to make deposits to get in line for making more money. This central authority oversees the operations. In BTC, we do not have any central authority. All investors have the same opportunities. In a Ponzi network, the newcomer has to pay up the up-line.
In the BTC system, there is no up-line and no need to pay anything. The investment in the hardware and software is done by each individual when he or she wants to do mining. The miners are able to work for their money according to common parameters.
Bitcoin has lost its value
There was a time when the value of the bitcoin was only $0.23. You can read about it on the site called Bitcoin Obituaries. Record of the various proclamations of the demise of bitcoins is present here.
Indeed, when BTC dropped in value from its high-point of $942, many people became disillusioned and lost faith. But the resilience of bitcoins has seen it steady up at its present value of $451. There are no indications of any dramatic rise in its value but there is no cause for alarm that the price will drop without any notice.