Are cryptocurrency and NFTs pyramid schemes?

[Grant]

I saw this recently while going through TikTok and it made me wonder about it. Most cryptocurrencies come and go, and a lot of the time people who invested money, end up losing all of their investment. While the main person to start it somehow ends up with money. In turn, being pointed out as a pyramid scheme. Do you think that's true? Watch the video below and tell me what you think about it. It helps having someone who studied economics talk about this.

https://www.tiktok.com/video/7257597675401481514

 

[Riberet19]

It is true that there are many cryptocurrencies that are simply schemes for the one who created them to earn money, simple pump to dumps as has happened in other markets too, the fact is that there are cryptocurrencies with a real purpose and nothing to do with a pyramid scheme in those who only want to take your money and cause a rugpull, there are cryptocurrencies such as Bitcoin, Litecoin, Monero, Bitcoin Cash and some others that have nothing to do with pyramid schemes, their longevity and trajectory support them, but those people who have the desire to get rich in 1 month and they believe that a meme coin is going to lead them to get rich in a short time, they end up losing their money because they simply fell into the trap.

 

[Ja Sa Bong]

Cryptocurrency is not a pyramid scheme nor is it a scam. A lot have been said on it already and with the level of investments people have in cryptocurrency will tell you it's not any scam or pyramid scheme. I can't say so about NFT's. They scam and people have lost money more than they have made from it.

 

[Nomad]

While there have been some fake crypto projects that were started as a pyramid scheme. For instance, a Bulgarian woman called Ruja started a crypto coin called One Coin, which turned out to be a pyramid scheme. However, crypto in general is a pyramid scheme. You don't make money by recruiting people, you make money only when the price goes up due to demand in the market.

 

[Heatman]

All cryptocurrency scams are most likely a pyramid ponzi scheme. OneCoin is a very good example of what I'm talking about when it comes to cryptocurrency projects that are pyramid scheme scam. Investors ending up losing over $4 billion in the pyramid scheme cryptocurrency scam by Ruja.

 

[Nomad]

Crypto and NFTs are certainly not pyramid schemes. Pyramid schemes means you recruit downlines and earn commissions from your recruits funding. The company will exist as long as there are new users. IN pyramid schemes only few on the top will earn. Crypto does not operate in this manner. You profit from the money you invest, you do not have to build downlines.

 

[Heatman]

Crypto and NFTs are certainly not pyramid schemes. Pyramid schemes means you recruit downlines and earn commissions from your recruits funding. The company will exist as long as there are new users. IN pyramid schemes only few on the top will earn. Crypto does not operate in this manner. You profit from the money you invest, you do not have to build downlines.

There was a guy that kept arguing with me that cryptocurrency is a Pyramid Scheme and it's also a scam. I did everything possible to help him understand that there is a difference between cryptocurrency and a Pyramid Scheme. He was going on about having to get more people to invest in cryptocurrency before you can be able to make money from it. I simply understood that he doesn't even understand what cryptocurrency is all about.

 

[Nomad]

While it is true that crypto will grow only when there are investors and traders, it is not something like pyramid schemes where you need to have referrals to earn. I have heard a lot of people, even the well known personalities, call crypto a pyramid scheme. While there have been fake coins that worked like pyramid scheme, crypto has no similarities with pyramid scheme.