Then let’s look at the definition of a hierarchical scheme:
A pyramid scheme or pyramid scheme is a “game” in which participants enter and also try to persuade others to participate, after which the entry of new entrants is paid as prize money to existing participants. Payments depend on the number of newcomers assigned (by the subscriber). Receipt of funds for this award is not dependent on any activity other than the recruitment of new entrants.
So how does this work with encryption? Well, if you want to participate, you will first have to make a deposit; You have to buy cryptocurrency from someone who is already in the game, or you have to mine cryptocurrency yourself (so you invest energy instead of money). Then you want to make a ‘profit’, you try to convince other victims to put money in it too, you can do this, for example, by defending the cryptocurrency, for example by saying that it is not a pyramid scheme.
Why are you trying to attract more people? If no one steps in, you can’t ‘cash’ your cryptocurrency, and since AH doesn’t accept crypto yet, you still have to sell it if you want to get a loaf of bread there (or car, or house). If you do it with a “loss” because no one wants to buy your coins, you will be disappointed. So you have an interest in higher prices and new people who want to buy your coins.
So all you have to do to “make money” is to convince others to “invest” in cryptocurrencies.
Is it a pyramid scheme? If it looks like a duck, swims like a duck, and roams like a duck, then it probably is a duck.
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