The dangers of pyramid scheme (PONZI)

The term Ponzi scheme was named after a fraudster named Charles Ponzi in 1920.

However, the first recorded instances of this sort of investment scam can be traced back to the mid-to-late 1800s, and were orchestrated by Adele Spitzeder in Germany and Sarah Howe in the United States.Origin

A Ponzi scheme is a type of investment scam that pays early subscribers with funds generated from new subscribers.
This type of scheme is sustained by a regular flow of fresh capital from new subscribers which is more like "robbing Peter to pay Paul" and that is what gave it the name Pyramid scheme.

Source
Ponzi scheme has been a very popular trend amongst Nigerians which has resulted in many losing a lot of money in it. Every average Nigerian must have lost money in a Ponzi or knows someone who did.

Source
This increased loss of money has resulted in more severe problems, especially amongst Nigerian youths.
Some of these problems include;

Increased rate of fraud amongst youths. The saying "Someone scammed me so why shouldn't I scam another" tends to push youths into forfeiting the consequences of indulging in such an act.
Increased rate of poverty. A lot of people tend to lose all their savings to Ponzi.
Depression, anger, and frustration. Lossing money to a Ponzi scheme leads to a lot of negative feelings which if proper care isn't taken will lead to suicide.

Source

I have been a victim of several Ponzi/scam investment schemes in the past which some of them includes;

Growthwayhub
Racksterli
Tronstake

Out of all the above, I was mored pained by racksterli for the fact that it came with a lot of good promises which I and others stupidly fell for.
But since the crash, a lot of people are still finding it difficult to move on.

The difficulty in moving is due to the lack of acceptance that their money is gone forever. Once they accept it, they move on from it and even leave the various social media groups that have to do with it.

Since my experience with Ponzi schemes, I have learned my lessons on investments and on where and how to invest which I believe you should too.

CONCLUSION

Ponzi scheme which is a very popular trend in Nigeria has done a lot of harm amongst Nigerians especially the youths which has made me fully understand that the faster a means of making money is, the higher the risk involved in it.