#哈皮杂谈 | Talk about Ponzi schemes

Is the cryptocurrency world a Ponzi scheme?

A Ponzi scheme usually involves using funds from new investors to pay returns to early investors, and this characteristic actually applies to all areas involving financial games.

1/ Looking back at the #StepN that appeared at the end of the last bull market, many people said it was a Ponzi scheme after it collapsed.

In fact, any collapsed project can be called a Ponzi scheme, but StepN has made some improvements and was indeed unique in the #GameFi at that time.

2/ Let’s talk about CryptoMines in 2021!

It is claimed that the investment can be recovered in 20 days. Players consume tokens to forge workers and spaceships, and give tokens to workers as rewards to drive spaceships to mine more tokens. At the same time, when the vitality of workers decreases, tokens need to be consumed to replenish blood.

That sounds fine, right? So why did this Ponzi scheme collapse?

Because it sounded too perfect, the token price soared. Early players sold the low-cost tokens they mined to new players who paid high prices. In the end, no new players entered the market and the market collapsed quickly!

3/ Let’s talk about Ponzi schemes again!

Through the example of CryptoMines, we can probably understand that Ponzi schemes basically meet two key points:

- Whether the old ones eat the new ones

- Will the newcomers be eaten up?

So how many of us meet these two conditions? Have we inadvertently participated in a Ponzi scheme without knowing it?

4/ Let’s put an end to Ponzi scheme!

I mentioned two characteristics of Ponzi schemes earlier and left a question for everyone to think about. Is there any Ponzi scheme around you?

Here are two simple examples of insurance:

Insurance actually satisfies the principle that the old ones eat the new ones, but whether the new ones will be eaten up later is something that needs to be considered!

- Commercial insurance: Generally speaking, commercial insurance has very sophisticated algorithms to control the numerical game and usually does not collapse. However, commercial insurance companies themselves have risks. Are you willing to trust a company? Therefore, the insurance industry is the most suitable for blockchain, open and transparent!

- Social Security: The social security that we all pay has two important indicators, namely, the mortality rate and the birth rate. This thing has a very high collapse rate, although no country will declare its collapse, such as Japan!

5/ End

Back to GameFi, why is it so popular in 2021? Because it shortens the Ponzi cycle, has a strong ability to create wealth in the short term, and also causes a very fast collapse!

So is the cryptocurrency industry a Ponzi scheme? Of course it is. Sooner or later, there will be no newcomers. However, blockchain is not yet popular, and virtual currencies still have a huge user base!

So, embrace the Ponzi of the cryptocurrency world! Embrace the Ponzi of the incremental market!

Pay attention to @BitHappy , seize the opportunity and grow together!