Different types of opinion is currently going on at this moment, most especially the during this bear market a lot as been said by some individuals and especially those who don't have enough knowledge about how the crypto world works.It is highly true that the bear as stayed for a long period of time resulting to lot of financial break down for some set of individuals, especially for those who are yet to have enough understanding as to how things works here.
People this days tend to hide under crypto to carry out some sort of business or scam process, it is very important that every individual understand the difference between ponzi scheme and crypto currency too, this will definitely reduce the level at which some scammer's in the community or society at large get to take advantage of some individuals
A quick look at what Cryptocurrency is
According to definition
Cryptocurrencies is definitely a digital or virtual currency underpinned by cryptographic systems. it enables online secure payments without the use of any third party intermediaries. Cryptocurrencies is regarded as various encryption algorithms and cryptographic technique's that do safeguard entries , like elliptical curve encryption, public private key pairs and hashing functions.
Cryptocurrencies in it own way can be mined, purchase and deal with having a secure wallet to monitor ones asset too, in Cryptocurrency buying and trading of coin is the most important thing that happens there, coins like Bitcoin and others coin are part of what Crypto investor's deal with, it is very important that people who don't understand enough get to know that the crypto world has to do with lot of high and low, which means that it level of volatility in terms of price at times can't be deny and this at times has affected lot of Individuals to run away from it due to the fact that they can't stand it too.
One thing about Cryptocurrency is that you have say over whatever asset you are holding, which means you can either choose to sell or hold at times, just like the bear period now, many individuals who can't hold on to the bull season are already selling off that which they hold before , giving no room for some set of individuals to buy also from them, this is a perfect example of the right of decisions that the crypto world gives to those who are in it.
But unlike the the Ponzi scheme that lot of individuals are into today , many have been brainwashed by saying Ponzi scheme is another crypto in nature, to me this is actually a very bad understanding and knowledge this days and honestly this as in one way affected lot of individuals that as led to having deep financial crises.
What is ponzi scheme
According to expert definition
Ponzi scheme is a fraudulent scheme of investments that is based on scam of promising high rate of returns to investor's. Ponzi scheme is a very bad initiative in which the early investor's only benefit from only , leaving the late invertors with nothing to write about. This is an initiative in which fund is getting from A to Pay B as means of returns of investment.
Ponzi scheme as failed time and over time and it as indeed led thousand's of individuals into everlasting debt, this is a form of investment that do fade off after the scammer as reached their goals or afternoon having lot of individuals in it and they are unable to meet up with needed fund required. In no way should Cryptocurrency be compared or consider as a form of Ponzi scheme at all and the level of dip in the market is definitely a constant thing that happened in the crypto market too.
The value of investment can reduce when it comes to Cryptocurrency, unlike when your investment is be carted away in Ponzi scheme, all money too is not lost when it comes to crypto, regardless the level of bear hitting the crypto world, a bull run can return multiple of what was lost initially and that is why during that bear period investor's are advise to keep getting more irrespective of how dip that market is at that moment, with Ponzi scheme once your money is carted away with, their is no mean at which such fund can be retrieved.
It is very important and vital that people get more knowledge as to what ponzi scheme are , as they will definitely end up putting those involved in higher risk instead of high returns that they do claim they give at the beginning. Buying of coin and trading it also is a clear example of what crypto is right now and that is why community like blurt too is a clear example of the definition of Cryptocurrencies, for no reason should you allow anyone to take advantage of your understanding at all, even at the midst of bear market, Cryptocurrencies will never be like a Ponzi scheme where people's fund is been stolen.