Ponzi scheme"Ponzi scheme", this kind of scam uses the money of investors who enter the market later to bring incredible returns to early investors. Eventually, when new investors dwindled, the scam collapsed.

Now, let's look at Bitcoin...

Yes, Bitcoin looks like a Ponzi scheme.

When you own a bitcoin, blockchain technology ensures that you actually own it. Scarcity is programmed into this blockchain to ensure that only 21 million bitcoins exist.

But how will the 21 million bitcoins be distributed?

Well, the people who get to it early and embrace it get most of it.

When it was first launched, the Bitcoin network distributed about 7,200 bitcoins per day to these people, these supporters are willing to invest electricity and computing power to maintain the network.

Today, that number has shrunk to just 900 -- or an annual inflation rate of about 3.6%, a little more than double that of the dollar.

Another way to look at how early adopters benefit is by looking at the concentration of addresses holding Bitcoin. The top 1,000 bitcoin addresses hold roughly one-third of all bitcoin, confirming the notion that early adopters reap the most.

Therefore, when the price of Bitcoin rises sharply, the people who get rich are those who get tens of thousands of coins for a paltry price.

And, most importantly, for the vast majority of investors, the most obvious scenario for Bitcoin is to stay in the wallet and do nothing. It does not earn income and does not pay dividends. It just stays in the wallet!

what does that mean? This means that for Bitcoin to continue seeing 10x price increases, it needs to bring in more and more new investors. Otherwise, the bubble will burst like it did in 2017.

Well, I hate to tell you the bad news, but Bitcoin looks a lot like a Ponzi scheme! But there is one important difference to understand...  

Important Differences With Bitcoin

Unfortunately, all currencies including the US dollar have"Ponzi scheme"of the same characteristics. It's worthless outside of people's belief in it, and its advocates and early adopters are those who make it stand out.

But Bitcoin has enormous value beyond being in your wallet. Bitcoin is our best chance to build an open, fair, and easy-to-use monetary system.

Someone could send $100 million in bitcoin around the world for a $1 fee in an hour, and no bank or government could stop it.

Bitcoin opened up a whole new world of commerce. In places like Ethiopia or Nigeria, where banking is restricted or business fees are too expensive, it is now possible to get salaries paid by American companies in bitcoin.

Bitcoin gives governments no arbitrary control over what people can do with their money. For example, the U.S. government wantonly banned online poker because of casino lobbying -- yet Bitcoin created an online gambling renaissance.

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US money supply chart

In the past 10 years, the United States has printed more money than in all other years of its entire history combined.

Whenever there is a crisis, the first instinct of politicians is to print more money so they can be re-elected. Bankers are happy to act as middlemen, as long as they get their hands on the money. This is true almost everywhere.

Even though Bitcoin initially had the qualities of a Ponzi scheme, its value as an alternative, unrestricted form of money has increased as more and more people have recognized its revolutionary value and started using it. will be bigger.

It's too early for it now.

It's still too early for cryptocurrencies.

Fewer than 25 million people hold cryptocurrencies. Looking at this number from another angle, the city of Shanghai has a population of 24 million.

Holding Bitcoin may one day become the norm. Today there are approximately 5 billion Internet users and a similar number of smartphone owners.

Even if half of the people choose Bitcoin, the adoption rate is 100 times that of today. But that could be decades away -- and it might not happen at all.

But what Bitcoin did was pave the way for a new wave of open, decentralized financial services. Bonds, derivatives, collectibles, options, stablecoins... the innovations will be endless.

And each of these innovations has the extraordinary potential to become the next Tesla, Apple, Amazon, or Microsoft.

Imagine how investing in Amazon, Microsoft, and Apple early on before everyone else would pay you off. Bitcoin makes such an opportunity possible, can you seize it?