"Crypto is a Ponzi scheme."
What is your definition of a Ponzi scheme?
Because you're not applying the actual defintion appropriately:
"Bitcoi7n is now and always has been a Ponzi scheme. Those at the top of the pyramid get rich; th4ose at the bo5ttom end up with nothing of value."
The quoted statement is an opinionated characterization and does **not** fit standard definitions of what Bitcoin is, nor of a Ponzi scheme in the legal/regulatory sense. [en.wikipedia](en.wikipedia.org)
## What "Bitcoin" Is, By Definition
Bitcoin is typically defined as a decentralized digital currency and payment system that operates on a peertopeer network using a public ledger called a blockchain. It has a protocol (rule set) governing issuance, transaction validation, and consensus, and those rules are transparent and not controlled by a central organizer promising returns. [coinbase](www.coinbase.com)
## What A Ponzi Scheme Is
Regulators such as the U.S. SEC define a **Ponzi** scheme as an investment fraud in which returns paid to existing investors come from funds contributed by new investors, not from legitimate profitgenerating activity. Hallmarks include a central operator, promises of high or guaranteed returns with little or no risk, and reliance on continuous new inflows to pay earlier participants. [kkc](kkc.com)
## Why The Statement Doesn't "Fit" The Definition
The statement calls Bitcoin "now and always ... a Ponzi scheme" and describes it as a pyramid where those at the top get rich and those at the bottom end up with nothing. That is a **valueladen claim** about outcomes and fairness, not a definitional description matching regulatory elements such as a central organizer promising investment returns funded directly by later investors. Whatever one's criticism of Bitcoin's volatility or wealth distribution, those criticisms do not, by themselves, satisfy the formal definition of a Ponzi scheme. [sec](www.sec.gov)
So maybe be a little more specific about your definition of Ponzi scheme next time and you possibly won't look so clueless.
The Sordid Story of Trump, the Trump"Witkoff Family Business, and the UAE
Even if crypto makes your head hurt, you're going to be hearing a lot about this in the months to come.
The article excerpt accuses President Donald Trump and associate Steve Witkoff of using their cryptocurrency venture, World Liberty Financial (WLF), launched in autumn 2024, as a front for foreign influence peddling and political payoffs.
Key Allegations
It claims WLF attracted massive UAE investments"starting with $500 million pre-inauguration and totaling at least $2.5 billion"tied to favors like pardoning Chinese-born felon Changpeng Zhao (ex-Binance CEO), granting UAE access to U.S. AI chips despite prior restrictions over China links, elevating UAE geopolitically, including them in the Stargate AI project, and preserving TikTok's U.S. operations. The piece portrays crypto's opacity as ideal for disguising such transactions, with Trump sons ostensibly running it to maintain "plausible deniability."
Comparison to Biden
The author, from **National Review**, contrasts this with extensive GOP probes into Biden family dealings (alleged $27 million from foreign influence, including China), which spurred an impeachment inquiry but yielded no Trump equivalent despite larger sums. It cites a recent **Wall Street Journal** report revealing UAE's Sheikh Tahnoon bin Zayed al Nahyan as a silent partner providing seed funds and expertise.
Promised Follow-Up
The post promises future installments demystifying crypto/stablecoins, recapping WLF's setup, Zhao's pardon rationale, UAE's Big Tech ambitions under Trump, and a timeline amid Democratic impeachment murmurs as midterms loom. It frames the scandal as dwarfing Biden controversies in scale.
www.nationalreview.com
Archived w/o paywall: archive.is