Beware of Ponzi schemes! Consider your own situation and see if you have been fooled.
Cycle steps of Ponzi schemes:
1. Initial pull-up: First push the market up, so that a few early investors can get considerable returns and create a money-making atmosphere.
2. Create a money-making effect: Through media and public opinion propaganda, let more people think that this is a guaranteed opportunity. Some cautious investors will use a small amount of money to test, and after finding that they can make money, they will gradually increase their investment.
3. Increase investment: Once the returns are stable, investors begin to increase their chips and even use leverage, expecting greater returns.
4. The main force begins to harvest: When the market heat reaches a high point, the main force quietly begins to withdraw and cash in the returns.
5. Retail investors continue to increase their positions: Seeing the price drop, retail investors generally believe that it is only a short-term correction, and choose to continue to increase their positions to dilute the cost.
6. The plunge intensifies: The market continues to fall, with a drop of -40%, -60%, -80%... Investors face huge losses.
7. Vicious cycle: capital chain breaks, retail investors suffer heavy losses, families break up, and tragedies occur frequently.
8. Repeated performance: after the market heat subsides, the main force chooses to pull up again, repeating the scam.
Finally, let me ask, is Bitcoin a Ponzi scheme?
