Today in this article we will know about Ponzi scheme which is also called pyramid scheme, with this scheme you can double your money, say such people who come with this scheme, look at Ponzi scheme which millions of people take it. Come and crores of people invest in it and this scheme 99.9% always turns out to be fraud, yet people invest in it because it is told that in this your money will be doubled, people put their money in this greed and Their money is lost because the one who comes with this scheme runs away.

What is a Ponzi scheme

A Ponzi scheme is in investment Scheme in which the older investor pay by using the money brought in Python in new invester this process this keeps running till the time the money brought buy the new investor in greater than the money take to the older investor ones this reverse is best in collapses and how the Ponzi scheme get it investers from the past 100 years is the time from the scheme was first invented on these screens have nearly similar construct.

New definition of Ponzi scheme

A convesnal Ponzi scheme used to have a devil manager whose job it is to fool people and run away with their money until their scheme collapses but a natural acring Ponzi scheme is slidely deferent from a convensnal one.

In naturally arcing Ponzi scheme there is no single devil manager in the modern day Ponzi scheme market enter of face better prices cost snidely up because new money keeps coming because some of area and this money used to pay the old investors who are little smart investors They know that as long as this money will keep coming in and the prices will be go up and does stocks can be loaded to new investors this is called greater fool theory.

The investors will keep buying even then the price is anjustifay no one the greater fool will come and invest in the time to come and they will take in safe. If you want to keep money coming to you and you will not stop to invest.

How to identify a Ponzi scheme

1. Abnormally high investment returns

2. Guaranteed returns

3. Consistently high performance

4. Vague business model

5. The need for more investors

6. Pressure to reinvest

7. The pressure to act now

8. Credibility through association

Are cryptocurrencies ponzi scheme

Cryptocurrencies is sometimes called a Ponzi scheme, so this article compared the Cryptocurrencies protocol to an official list of Ponzi characteristics to see if it holds up.

Cryptocurrencies does not meet most of the criteria for a Ponzi scheme. However, an investor must assess the ongoing probability of Cryptocurrencies failing or succeeding in displacing other stores of value and payment systems.

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Benifits of Ponzi scheme

High Rate of Return :- Earlier investors used to get more returns in this, they used to get more returns than other schemes.

Low or No Risk :- Earlier investors enjoy low risk which is quite impossible in other investment schemes.

No Big Capital Requirement :- It does not require huge capital as the scheme is dependent on the investment of the new investor.