Sal Bayat

The Strange Case of Nakamoto’s Bitcoin – Part 1

In actuality, categorizing the mother of all crypto as Ponzi or pyramid is an attempt to fit a square peg into a round hole. Bitcoin is neither, it belongs to a new genus of fraud. It has several specific qualities that make it unique, and many others that it shares with known forms of investment fraud, notably Ponzi and pyramid schemes. By carefully examining Bitcoin’s construction and observing its relations with other forms of investment fraud, we can better understand the inner workings of the Nakamoto scheme.