Is Crypto Just One Big Ponzi Scheme?

Last week Sam Bankman-Fried founder of FTX, a huge crypto exchange, and one of the most prominent figures in the crypto space, shocked the world by describing “yield farming”—crypto’s makeshift alternative to traditional bank lending—as a Ponzi scheme.

The author of this story Greg Barker described crypto’s only way to make money is for prices to increase or “the greater fool theory”. Cryptos offer no other way to profit as there is no interest earned, no dividends or cash flow received from own Cryptos. Barker also tells us that “Mike Novogratz, CEO of Galaxy Investment Partners, infamously likened Bitcoin to a pyramid scheme.” Finally, “like Coindesk publishing an article with a lede reading: ‘Yes, it’s a Ponzi scheme. But who cares?’”

Barker says, “these candid brags are akin to those of the subprime era.” He asks, “When will this bubble burst?” You can read the story by clicking the link below

https://unherd.com/thepost/is-crypto-just-one-big-ponzi-scheme/