"Pyramid scheme", "pyramid scheme", "financial pyramid", "Multilevel Marketing" or "MLM" are the vulgar forms that named the famous ponzi scheme created by Charles Ponzi in the 1920s, the term "pyramid" comes from Structure as the sale is organized: the person at the top is the first to sell the good or service to other people, who also have the obligation to continue sales, forming several levels, or chains, always with a new "step." In such cases, investor payments come from applications made by new members. At some point, the chain is broken: the amounts received from the new recruits are not enough to pay the older members and the payments begin to delay, until the moment they stop occurring, to the detriment of the participants.
Due to the volatility of its price, high unit value and also in some cases where people have made a lot of money, Bitcoin is sometimes accused of being a pyramid scheme. And this type of coup has been coming up frequently, especially using the Bitcoin currency, promises of low investment, high returns, no need to sell some products, all profit comes from nominating people to join the group, which is not The case of Bitcoin. With Bitcoin, it is not necessary for new people to start mining or participate in the network so that it continues to function, the network is independent of the number of users, but the more decentralized and replicated the protocol is, the better the network performance. The limited nature of Bitcoin's formula guarantees its strength, the impossibility of inflation and constant valuation in the future.
Bitcoin is an independent, open, public technology and does not depend on a company or a group of people to function, if someone:
Charge membership fee for you to have your Bitcoins.
Monthly fee to participate in the scheme.
Know that you are dealing with a pyramid scheme, which I repeat, there is nothing to do with Bitcoin itself, these people are only using the image of the new technology to promote and evade the state screening of the movement of these values, it is well known that Inevitably one day this company will go bankrupt and will not pay the people involved in the scheme. The irony is that we are supposed to live in the information age, but people continue to fall into this kind of scheme. All these myths about Bitcoin being a pyramid are created and disseminated because it is a novelty, which has non-traditional functioning. But also, the misinformation and the fear of those who never had contact are strong generators of false beliefs.
Unlike these schemes, where the founder needs to convince new registered users, Bitcoin was simply created and published in an encryption forum. Satoshi Nakamoto, pseudonym of the unknown creator of Bitcoin, did not promise profits, did not convince people to buy the coin or start mining. It simply continued the development of the protocol even without the adoption of the market.
