Have you ever heard of the word pyramid scheme or Ponzi scheme? If you haven’t let me explain it to you in simpler words! A pyramid scheme is primarily a fraudulent money-making system that makes money based on hiring an increasing number of investors.
The initial promoters hire investors who then in turn hire investors and this goes on. This is known as a pyramid scheme because each level features an increase in the investors. The main purpose of the pyramid scheme is to use products and services to act as if they are a legit business but their main motive is to collect money from all the investors at the bottom levels to pay investors at the upper levels.
Hence the upper investors are the ones who benefit the most from pyramid schemes. There are several famous pyramid schemes which include Mary Kay consulting, United Sciences of America, Vemma, Herbalife, and lastly Amway.
Is Crypto A Pyramid Scheme? What Does EzChargeback Have To Say About This?
So what’s the conspiracy behind this popular question. Let’s find out whether cryptocurrency is yet another pyramid scheme or whether it is legit. Many experts argue that cryptocurrency is indeed a pyramid scheme. Let’s find out their perspective on this and why they are calling it a pyramid scheme.
Many experts argue that it might seem that cryptocurrency is revolutionary but if you look closely beyond this hype you’ll soon find out it’s all a pyramid scheme. It is argued that these currencies are sold to budding investors and since the cryptocurrency is so volatile it is treated as an investment scheme.
The main problem is with extracting money and finding someone who is actually willing to buy the tokens you have. There’s a drawback to this which is that someone will only purchase your tokens once they think someone else will buy them at a higher price from them and on goes the cycle.
If someone fails to find a person who’ll pay more than the actual price then the entire scheme will collapse and the value of the token will be 0.
Learn From My Mistakes & Protect Your Digital Wallet!
The main problem with this entire cryptocurrency trading is finding and navigating your way through it.
If you see the volatility of the currency and the fact that it operates solely on the basis of selling tokens to the other person and so on it is indeed a pyramid scheme that will collapse if you can’t find another investor.
However, it is still very lucrative and you need to have a company that helps you navigate your way through this platform. You can stop searching for companies I’ve got you!
Ezchargeback is the company that’ll help you through these confusing cryptocurrency dealings and they’ll make sure you avoid all types of scams along your way. This company specializes in this field and trust me when I say they’re the best! They have the best customer service and they’ll guide you throughout your crypto adventure.