/biz/ - Business & Finance

>"By the broadest definition of a Ponzi scheme, the entire global banking system is a Ponzi scheme."
This is irrelevant and misleading. Indeed, this is one of the most cringe-worthy tropes used by bitcoin promoters to convince people to give them their "worthless" dollars in exchange for the "valuable" digital donut holes that they are generously willing to sell.

As I explained , a national currency like USD or JPY does not fit the definition of ponzi for multiple reasons. There is no expectation of profit by "investing" in it. There are no profits paid off to those who choose to "cash out". Thus the new "investment" money is not used to pay off those non-existent profits; and the operators of the "scheme" do not take a fat slice of that "investment" money.

And the same objections apply to the attempt to cast "the entire global banking system" as a ponzi scheme. No one expects to make a profit by depositing money in a bank, there is no profit paid to those who cash out, etc. etc.

National currencies and bank accounts are clearly not meant to be investments, and therefore it makes no sense to compare them to investments. This line of argument is like claiming that a dead rat is a better paperweight than a chair, because chairs are disgusting.